CHICAGO - Toyotas are losing value by the week.
Car guide Kelley Blue Book dropped the resale values of recalled Toyotas for the second time in four days yesterday, leaving them as much as 4 per cent or US$300 ($438) to US$750 lower than a week ago, depending on the
model.
Recalls and a slow response to safety questions have put a dent in the market value of cars long seen as money in the bank for their owners.
As values drop and safety issues keep surfacing, the world's No 1 carmaker faces increasing risks that even long-steadfast customers will defect.
"Toyota has fantastic loyalty, but this is definitely going to have a real erosion in that," said Juan Flores, director of vehicle valuation for Kelley, which just two months ago named Toyota the best brand for resale value.
The car research website Edmunds.com estimates resale or trade-in values could fall up to 10 per cent in the short term. How far they drop over the longer haul will depend on how long the confusion lingers.
Already, some dealers are refusing to accept Toyotas for trade while others are paying considerably less than they did just two weeks ago.
The latest reduction by Kelley reflects both Toyota's apparent lack of confidence in its vehicles and a dramatic drop in customer interest in Toyotas, according to Flores.
Toyota has so far recalled more than 7 million cars in the US, Europe and China over a sticky accelerator and floor mats that can get caught in the accelerator pedal.
Since the first recall for sticky pedals on January 21, Edmunds' estimate for the trade-in value of a 2009 Toyota Camry has fallen by 4 per cent to 6 per cent to US$13,967 while the 2009 Toyota Corolla has declined 6 per cent to US$11,233.
