What Is My Toyota Worth?

The Toyota brand has taken a well-deserved beating in 2010. The company responded slowly to complaints of sticking accelerator pedals, initially ascribing problems to floor mats or driver error. Now Toyota has recalled millions of vehicles, raising questions for owners.

• Should you be worried about the resale value of the Toyota in your garage?
• Does this only affect only recalled Toyotas or the entire brand?
• Does Lexus have the same problem?

In general, I believe that Toyotas are well constructed, and I have faith that the brand will succeed over the long haul. That said, the Kelly Blue Book noted price drops of 2-3% in resale value for Toyotas, and some Edmunds estimates show decreases as high as 10%. The company’s recent openness has started it back on the path to success, and with its agreement to pay a large fine in the U.S., I think it has turned the corner.

The resale value for Toyotas has declined, but you can get a quote on your car now to see where you stand. The Toyota web site says that the following vehicles are involved in recent recalls, as of April 23, 2010. 

Recalled Toyotas

2005-2010 Avalon
2007-2010 Camry
2009-2010 Corolla
2008-2010 Highlander
2009-2010 Matrix
2004-2009 Prius
2010 Prius
2009-2010 RAV4 1998-2010 Sienna
2008-2010 Sequoia
2005-2010 Tacoma
2007-2010 Tundra
2009-2010 VENZA

For an updated list, see www.toyota.com/recall. The Lexus and Scion brands are made by Toyota, but they were not affected by the gas pedal recall.

This is a terrific time find a great values buying a new Toyotas. If you live in NJ or NYC, consider selling your car to We Buy Any Auto.

On April 22, the Moody’s credit rating agency lowered Toyota’s rating one notch to a still-respectable “Aa2.” The Moody’s report cited concerns over Toyota’s ability to pay debt, its profitability and its pricing power. The last two points are good news for consumers. Presumably, Toyota will continue making high quality cars, and the company should be even more sensitive to safety issues, but it will be forced to charge lower prices while its brand image recovers.

Toyota Recall Timeline

• January 21 - Toyota recalls millions of vehicles with sticking accelerator pedals.
• January 26 - Toyota suspends sales and production of 8 models as the company determines the source of the sticking gas pedals.
• February 19 - KBB notes drops of 2-3% in resale value for Toyota models.
• February 24 - Toyota President Akio Toyoda testifies at a U.S. Congressional hearing.
• April 19 - Toyota agrees to pay $16.4 million USD fine over charges that the company delayed its vehicle recall.
• April 22 - Moody’s, an international ratings agency, cut Toyota’s credit rating.

Toyota Gas Pedal Recall - Technical Details

Toyota says friction between pedal parts can cause the pedal to stick. The pedals are intentionally designed with some friction because this makes the pedal action feel smooth. In the particular design that’s involved in the recall, the parts can wear to the point that the pedal returns slow to the idle position or not at all (stuck pedal).

The recall fix is to install a simple metal shim that increases accelerator spring pressure and reduces wear. The shim is only a few millimeters thick, but it can make the difference between a safe ride

Toyota Pedal Diagram
Source: Toyota.com