Well ONN is part of our industry since quite some time now.. I think it started in early 2000s or late 1999s when there was a surge in leased cars. Due to sudden spike in demand ONN mafia started its operations.
Anyways, I will try and explain how it is conducted. It is morally and ethically a bad practice but legally its not.
A lot of investors have pooled their money with HONDA/TOYOTA sales showrooms. They book cars (investors) and sell it to customers which need car urgently. Some of the portion is kept by dealership as their cut and other is investors profit.
Because of the ONN mafia dealerships tend to delay bookings as the customer conducts a time vs money analysis. Generally its better to pay ONN on toyota cars as they have longer wait times. Honda's delivery time is about 20 days tops. I think for some reason the specific dealership is trying to fleece you. Better to go to another dealership, don't discuss your previous car. Just say I want to book a new car with whatever options you want and ask them how quickly you can arrange. Sell your current car in open market.
Just my two cents.