IBJNews

Analyst: Recalled Toyotas likely won't face long-term resale hit

Back to TopCommentsE-mailPrintBookmark and Share

The recall of several Toyota models for sticking accelerator pedals raises the question of whether customers who bought them due to a perception of quality, prior to the recall, now will be burned when they go to sell them.

Probably not, “as long as it continues to be handled very transparently” by Toyota, said Tom Kontos, executive vice president of customer strategy and analytics at Carmel-based Adesa Auction Services, the nation’s second-largest used-vehicle auction chain

One reason is that Adesa and some of its competitors have pulled the affected Toyota vehicles from auction until the problem is resolved.

If not, buyers likely would expect to buy them at auction at a lower price.

“To the extent you halt the transactions you don’t run the risk of damaging a vehicle’s value,” said Kontos.

That Toyota plans to reimburse dealers for eventual repairs also will help to hold vehicle values, he added.

For now, not only has Adesa temporarily pulled the affected Toyota vehicles from auction but is having them transported by flatbed truck rather than driven to auction sites as a safety precaution for its employees.

Kontos said he hasn’t seen anything like the Toyota situation since the firestorm nearly a decade ago involving Firestone tires that were blamed for causing a rash of Ford Explorer rollovers. In that case, the tire tread separated.

Ford agreed to replace the tires free of charge. Values of Explorers at auction fell, although it may have had as much to do at that time with a glut of used sport utility vehicles coming off lease, Kontos said.

Toyota is suffering from a stream of recalls, however. In addition to the recall announced this week of 2.3 million U.S. vehicles, last September it announced a 3.8-million vehicle recall to secure floor mats that could jam the accelerator pedal.

In the last several years the Japanese automaker has announced recalls involving its Tundra full-sized pickup for problems including frame rust, a defective camshaft on V-8 engines, and separating rear propeller shafts.

The recall announced this week on some of its most popular vehicles involves gas pedals manufactured for Toyota by Elkhart-based CTS Corp.

Affected are certain Avalon, Camry, Corolla, Matrix, Highlander, Tundra and Sequoia models.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Gay marriage is coming, whether or not these bigots and zealots like it or not. We must work to ensure future generations remember the likes of Greg Zoeller like they do the racists of our past...in shame.

  2. Perhaps a diagram of all the network connections of all politicians to their supporters and those who are elite/wealthy and how they have voted on bills that may have benefited their supporters. The truth may hurt, but there are no non-disclosures in government.

  3. I'm sure these lawyers were having problems coming up with any non-religious reason to ban same-sex marriage. I've asked proponents of this ban the question many times and the only answers I have received were religious reasons. Quite often the reason had to do with marriage to a pet or marriage between a group even though those have nothing at all to do with this. I'm looking forward to less discrimination in our state soon!

  4. They never let go of the "make babies" argument. It fails instantaneously because a considerable percentage of heterosexual marriages don't produce any children either. Although if someone wants to pass a law that any couple, heterosexual or homosexual, cannot be legally married (and therefore not utilize all legal, financial, and tax benefits that come with it) until they have produced a biological child, that would be fun to see as a spectator. "All this is a reflection of biology," Fisher answered. "Men and women make babies, same-sex couples do not... we have to have a mechanism to regulate that, and marriage is that mechanism." The civil contract called marriage does NOTHING to regulate babymaking, whether purposefully or accidental. These conservatives really need to understand that sex education and access to birth control do far more to regulate babymaking in this country. Moreover, last I checked, same-sex couples can make babies in a variety of ways, and none of them are by accident. Same-sex couples often foster and adopt the children produced by the many accidental pregnancies from mixed-sex couples who have failed at self-regulating their babymaking capabilities.

  5. Every parent I know with kids from 6 -12 has 98.3 on its car radio all the time!! Even when my daughter isn't in the car I sometimes forget to change stations. Not everybody wants to pay for satellite radio. This will be a huge disappointment to my 9 year old. And to me - there's so many songs on the radio that I don't want her listening to.

ADVERTISEMENT