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Honda is hoping its upmarket drive will rub off on the Accord's residual values, expecting the car to hang onto up to 40 percent of its value after three years, a jump over the older model. Time will tell, but this is a healthy statistic. But there's the hefty price increase to factor into the equation. Honda will also try to rein in oversupply with a modest prediction of just 10,000 sales in its first 12 months. The initial lack of diesel power in the engine line-up is also disappointing, and this may well be the reason why Honda is not pushing into the fleet sector - until the 2.2 CTDi diesel arrives in early 2004, it doesn't have any particularly attractive models on offer for that market. Its petrol engines are frugal, but the C02 levels high. However, insurance groupings are low, Honda dealers' servicing is well-priced and overall, running costs should be competitive. Accords have always made excellent second-hand buys - a legacy of their exemplary reliability and build quality records. Let someone else take the initial depreciation hit over the first few years, and then the Accord will make a very attractive used car. Again, time will tell if Honda's upmarket pitch and less ambitious sales policy will pay off with higher residual values. We suspect second-hand values will climb slightly, but not as much as Honda would like. Despite the high levels of standard equipment on all models - four airbags, ABS, EBD, multi-function steering wheel, CD/radio, electric windows, climate control and keyless entry, much of this is offset by the significant price hike. An entry level 2.0-litre Accord is dearer than a 2.0-litre Mazda 6 with a few options, and costly versus well-specced Passats and so on. That's significant for a car that still doesn't have the cachet of a BMW, Mercedes, Lexus or similar.
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