Toyota Resale Value Could Be Docked 4% to 5%

2010ToyotaRAV4moving

Kelley Blue Book has released a statement saying it believes the current Toyota recall and stoppage of sales could affect the resale value of new models. This is the first official word we’ve heard from analysts willing to make such remarks.

"The potential demand lost as a result of these actions becomes more and more difficult to recover with each passing day. In addition to a drop in consumer demand for Toyota, there is a growing supply of used Toyota vehicles that could put further downward pressure on values,” the statement says.

KBB says the situation could lead to resale values falling an additional 4% to 5%.

Toyota won KBB’s Best Resale Value Award in 2010 as the top brand for resale value, with three vehicles among the top 10: the Prius, RAV4 and Tacoma.

The resale value for a 2010 RAV4 after three years is 56%. By comparison, the resale value of a 2010 Chevrolet Equinox is 45%. A loss of 5% could be a boost to competitors.
 
Toyota's Woes Will Cost Owners in Lower Resale Values (USA Today)

By David Thomas | February 5, 2010 | Comments (9)

Comments 

broq

This is pretty much what happened to the Explorer (and its resale value), isn't it, Dave?

Broq

segfault

Class action! Class action!

YOING

This is great news for those cash strapped used car buyers who want a quality piece but don't want to pay the extra dough for the Toyota nameplate.

How many people are going to panic over this (sensationalized)dilemma and irrationally dump their Toyotas for a competitors product?

There are plenty of suckers out there.

George

I can tell you Im seeing it all over the place. The Govt, Owning GM, has these people so scared that they are willingly going $3-6k in the hole to trade a car in. Ridiculous, Every car has flaws. The difference is they dont do recalls to fix the problem. They sidestep it and move along.

kj

The bottom line for me is I bought a Toyota because it will last a long time without too many problems. I plan to keep my RAV-4 for a long time and I don't care what trade-in value will be for at least another 6 years, or more.

G5

Wow this is a funny article. KBB is the least reliable and lowest quality source when determining auto values.

pixel

"Toyota Resale Value Could Be Docked 4% to 5%". Yeah and some day KBB 'Could' be considered a legitimate source. Until that day comes Toyota's will continue to have among the highest resale values in their class. Just go and try an buy one used and you'll see.

Robert

This is something I've had to explain to the college student (daughter) in my house who drives her 2009 Toyota to the local JC. She got wigged out a bit and asked if we couldn't wander over to the local GM dealer to see what they had. I explained to her that, even if it's not justified via common sense, her little car has dropped in value and she won't be able to get much for it on the used market. Certainly, the GM folks will gouge the hell out of us on a trade-in. That $1,000 "predator" rebate GM was touting makes me laugh. The kicker: We took it to the local Toyota dealer for the fix, checked the VIN, and found out hers is a rare (for California) Japan-mfrd. Corolla (as opposed to NUMMI-made down in Fremont), so it has the Denso Corp. accelerator, not the defective one from Elkhart. No fix needed. Bottom line, though: We'll be keeping the car at least partly because, deserved or not, it's lost value we can't recover. Most important piece, though: Nothing's wrong with it, and I expect her to drive it for a long, long time.

BryanG

I work at the largest automobile wholesale operation in the country which takes place in the NE. To date I haven't seen Toyota Camry prices drop at all.

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