KBB Lowers Recalled Toyota Resale Value Again

Toyotabadge
Kelley Blue Book lowered the used-car values of recalled Toyotas for the second time in two weeks. It initially decreased the value of the recalled vehicles by 1% to 3% but followed the next week with another downward tick of 1.5%.

A KBB spokesman said this was largely due to the growing supply of unsold Toyotas, not only on dealer lots but also at auctions. “At this point, it’s clear that the market is shifting away from these Toyota products right now, allowing us to project their lowered values,” said Juan Flores, director of vehicle valuation at KBB.

Flores said the values could be pushed even lower as more data become available in the coming weeks and months.

In other news involving issues with Toyota’s ongoing recall issues:

  • The Detroit News reports that State Farm reported rising claims of unintended acceleration incidents in Toyota vehicles to federal regulators in September 2007. Congress will review whether the National Highway Traffic Safety Administration failed to connect the dots when it conducted six different investigations into the acceleration issues that led to a recall of only 55,000 floormats.
  • In an NPR report, a State Farm spokesman suggests that Toyota owners who’ve been involved in accidents may seek partial refunds on their insurance by claiming — rightly or wrongly — that sudden acceleration was to blame. State insurance regulators are preparing for a surge in those appeals.
  • The Associated Press reports that a House oversight panel will postpone its hearing on the Toyota recalls until Feb. 23 due to snowstorms in Washington. The panel will hear testimony from Transportation Secretary Ray LaHood, Toyota’s North American CEO Yoshi Inaba, NHTSA Administrator David Strickland and two safety experts.
  • Akio Toyoda, the president of Toyota, has an op-ed in the Washington Post in which he acknowledges that “Toyota has not lived up to the high standards we set for ourselves.” Toyoda promises that his company is performing a “top-to-bottom review” of its global operations and that it will work to regain the trust of American drivers.
  • The Los Angeles Times has a story on why it’s so hard for people to react in an emergency like unintended acceleration, pointing to a confluence of human psychology and increasingly complex vehicle technology. “When people are in an intensely fearful situation, their ability to problem-solve is greatly diminished,” according to psychiatrist Broadie Dunlop.
  • The Boston Globe reports that Zipcar, the car-sharing service based in the Cambridge area, will pull all the 2010 Prius vehicles from its fleets until the issue with the brakes has been resolved. Zipcar says this affects less than 1% of its fleet.
  • The AP also reports that the NHTSA will look into roughly 80 complaints from drivers of the 2009 and 2010 Corollas, who say their cars wander during highway driving and tend to drift out of the lanes. This is not yet a formal investigation, though, and the agency stresses that it receives and reviews thousands of driver complaints each year.

Comments 

Max

I work for an Audi dealer that is part of a multi-brand dealership and don't know of anyone who references the Blue Book. I think ten years ago it had it's place but there are at least a half-dozen better sources today for both the customer and the dealer to use.

PC

I have no idea what auctions are being referenced but they're not the ones I attend. I see Toyota's (and Honda's and Mazda's) still moving just like they have been for the past six months.

Tony

KBB is a bad source. Before dealers used to use a "yellow" or "black" book from NADA. But I think NADA now is together with KBB. Hyundai dealer here tells you that they honor Edmund's car price now.
Kbb tells you your car's "value". ha-ha. That pisses me off. Just like a house market. They tell you that the value of the car is $10K but it sits on the lot for a year. The value of your car is how much people willing to pay for it. It is called market. they can lower it, they can make it higher but only people set the value.

Try use this: truecar.com

Mark

Kelly Blue Book is a rip-off. I've found that shady dealers try to use it whereas the good dealers will use something like Edmunds true market value.

XRS

I currently hace a 99 corolla 5 speed manual and never have any problem at all and i work at a Jaguar / Land Rover dealership we had 2 toyotas and they didnt stay long.I dont know if im right but this Toyota issue sounds like bs for me because now every customer are having issues with toyota cars and the press and agencies are founding more issues its totally bs guys.Why the press didnt talk about the little kid that died because of a faulty power window relay in a honda fit. Honda and Ford uses the same supplier Toyota use for the gas pedal and why honda is not having issues and ford is having issues too in china what happen here is Toyota is outselling all american cars here and they want to stop toyota in any possible way. I might be wrong but thats what i think

William

KBB is just like Obama in that no one takes them seriously any more.

DL

William,

Obama has nothing to do with KBB.

For the rest of you,

KBB isn't that far off with regard to many cars compared to other sources. Besides, none of you has convinced me that Toyotas' prices won't fall. Chill out people!

Shorebreak

It's what Toyota vehicles go for at the used car auctions that the dealers attend what counts. So called "blue books" mean squat. Go ask a good independent used car dealer what they have been seeing at the auctions. Most will let you know.

Calvin

"KBB isn't that far off..." Spoken like a true dope.

segfault

Someone's going to have to fall on a sword before this is all over...

Calvin

sorry for being such a sourpuss

DL

I'm saving up to buy a Toyota some day so I hope the prices keep falling. My boss said I can work the drive-thru an extra shift so I should be ready this Fall.

DL

life is so sad

Ian5

I've made 15% on Toyota's stock, buying on the drop and selling as it climbs back, since late January. I'm not a day trader just a smart person who watches the lemmings push weak stories while I take an easy profit. At least you know you make a great Lemming.

DL

I guess you figured out what the L in my name stands for. Frankly I like being a lemming because I finally found something I'm good at.

DL

This is so much fun. I forgot my real name actually stands for Dead Loser. Yay!

DL

Back on topic -- Toyota will have a lot of work cut out ahead of it, at least in terms of reputation. Seems like news stations are reporting that significantly fewer people are visiting Toyota dealers to shop for a new car.

KBB's estimates can be off, who gives a rat's tail? Other sources also estimate Toyota's prices to be falling. That's the point here.

Shorebreak

The local new vehicle dealers where I reside either use the Black Book or Mannheim Auction results. They tell me that KBB is unrealistic when it comes to trade-in values.

mike b

If you read what the president of toyota says about his own company, He says the quailty of his cars/trucks have been going down since 2002 to present. So why buy JUNK? If you buy a japan car $10,000 goes to japan called the fair trade agreement on each car, our tax dallors. Is that fair? I will always a ford the only american company still going.

Not a welcome gesture. I totally agree with the users opinion.
scott

EbooksWithResellRights

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