Honda Motor Company, stung by a 21% drop in Accord and Civic car sales this year, said it may have to offer cheaper loans and leases and raise dealer incentives to bolster sales of its two best-selling American models.

Honda, Japan’s third-largest automaker, last week had an 8.3% sales decline in America for January and February compared with a year earlier. Sales of its Accord and Civic fell by 20,291 units in the first two months of the year.

The Tokyo-based company, which is planning to sell a new version of the Civic this year, has spent 49% less than the industry average on incentives in the past four years. Now, with sales down in part because of bigger incentives for competing Toyota Motor Corporation and Nissan Motor Company cars, Honda is narrowing the gap.

“It’s the money factor,” said a spokesman for Honda’s American unit, Andy Boyd, in an interview today. “Spending in the segment from Toyota and Nissan is three to five times what we’re spending. We’re probably going to have to get in step with that, but we don’t intend to do anything we’re loath to do.” Honda is led in America by Koichi Kondo, a managing director of the parent company.

Honda, which doesn’t offer consumers cash back on car purchases like some rivals do, still spent a record $2,943 per vehicle last month on incentives including low-interest loans and cash to dealers, according to CNW Marketing Research, based in Bandon, Ore. That compares with an average $4,423 CNW estimates automakers offered in February.

CNW’s estimate, which Honda doesn’t accept, includes the value of added content such as six-disc CD players and alloy wheels the company offers on so-called special edition versions of Civic, for example, rather than cash rebates.

Honda, which for the past five years has had the highest average profit margin among automakers selling in America, spent 33% less on incentives in February than the industry average. That was still 50% above its $1,967 average for 2004, CNW said.

“They’re in a tight spot with Civic because they have to struggle through several more months until the new version comes out,” said an analyst with industry forecaster Global Insight, based in Lexington, Mass., Rebecca Lindland. “They have to get more creative with financing offers.”

Currently, Honda’s most generous offer on Accords and Civics is a 2.9% interest rate on loans for as long as 60 months, according to its Web site. In comparison, Nissan is promoting 1% interest on Sentra small cars for loans as long as five years, with $1,500 cash back to buyers, or a total rebate of $2,500 with a higher loan rate, according to the company’s retail Web site.

Toyota is offering $500 cash for Corolla customers combined with a 1.9% interest rate for as long as four years, according to its Web site. Toyota, the world’s second-largest automaker, also has a $1,000 rebate on Camry sedans, which compete with the Accord, combined with 1.9% interest loans for up to three years.

Mr. Boyd said yesterday the company will look at the latest weekend’s sales to determine if it needs to bolster any of its incentives.

While Honda hasn’t offered customers rebates for Civics and Accords, it does pay cash incentives to American dealers like Toyota and Nissan do. Honda a year ago increased such payments to more than $400 for Civic. Mr. Boyd declined if such payments may increase.

“Honda’s got about $500 in dealer cash on Civic,” said the president of CNW, Art Spinella. “They’re doing some other types of dealer programs that make additional funds available so it’s difficult to know exactly how much is available for Accord and Civic.”