By Gabrielle Tassone - February 8, 2010
Named the best brand for resale value by Kelley Blue Book just two months ago, Toyota resale values have now dropped by as much as three percent.
According to the Associated Press, Kelley Blue Book now lists Toyota's recalled models $2,000 to $5,000 less per car.
A Kelley spokeswoman said another statement of value depreciation is expected in the coming week, unless Toyota rectifies the recall controversy.
Edmunds.com, an auto research web site, estimates the trade-in value of a 2009 Toyota Camry at $13,967, marking a four to six percent decrease. The 2009 Toyota Corolla has experienced a drop of six percent, its value; $11,233.
"My advice to a consumer would be 'If you don't have to trade one in, wait,'" said Michelle Krebs, a senior analyst for Edmunds. "Values will stay down for a bit. But Toyota's got really strong brand equity."
To date, Toyota Motor Corp. has recalled more than 7 million cars in the U.S., Europe and China due to sticky accelerators and floor mats that get caught in the gas pedal. The Prius is being investigated for brake failure.
This week Toyota is expected to announce its plan for fixing that issue.
"It's a little bit scary to think the car with the greatest reputation for safety is in the situation it's in now," Laura Benin, a Corolla owner told the AP.
Reacting to shaken consumer confidence, GM, Ford, and Chrysler have announced similar incentive programs that offer $1,000 to Toyota owners who buy vehicles from their company.
"I don't think Toyotas are going to suddenly become undesirable on the car market," John Wolkonowicz, a senior auto analyst for North America at Global Insight said."It's just that they have been taken down from this lofty position that they couldn't possibly live up to forever."
