Toyota Recalls Cause Diminished Values

Values of both new and used Toyotas have been declining in recent months due to the widely publicized recalls. Improperly installed floor mats were blamed for a U.S. recall in the fall of 2009 that covered more than 5 million Toyota & Lexus models. In January 2010 over 2 million Toyotas were recalled due to problems with unintentional acceleration complaints associated with eight different models. Today, even after repairs are completed to correct these issues, customers say the problem has not been resolved.

As a result, values are declining on most if not all lines of Toyotas because of safety concerns. "This is caused by a lack of consumer confidence," states John Delaney, Southern Florida's certified agent for the Auto Appraisal Group. Toyota owners could feel this loss of value by as much as 5% to 10% on most models. The Auto Appraisal Group has monitored auto values nationwide for over 20 years and is the only auto appraisal company of its type in the country. "These cars have diminished in value because of recalls and safety issues," says Larry Batton, president of the company. "It could take several years for Toyota to overcome these problems and for owners to regain confidence in Toyota's safety standards." Delaney concludes, "This is a major financial blow for Toyota owners and dealers across Florida."

For more information about the Auto Appraisal Group, call 1-800-848-2886.