Toyota's Troubles Impact Used Car Business
February used-car sales look like they'll be off about 2 percent vs. a year ago, mostly because of Toyota, according to CNW Marketing Research.
In the first few days after the recall announcement, Toyota used sales tumbled 39 percent. That included both models included in the recall as well as those not affected.
Many independent dealers and private parties didn't have access to the necessary repair parts and feared both liability and buyer backlash. Within a week of the recall/stop sale, used Toyota sales improved and transactions were down barely 11 percent.
As of Feb. 22, Toyota used sales remained in a funk and were 12 percent behind a year ago across all channels, CNW reported. Among those used-car intenders who had a Toyota product as their number one choice to buy, nearly 18 percent elected to acquire another brand in the end. Honda was the primary used beneficiary with about a quarter coming from Toyota intenders. Ford products replaced Toyotas in 18 percent of the cases and Hyundai models grabbed six percent of the Toyota intenders.
In non-recall times, a check of the past five years shows only 6 percent of Toyota intenders opting for a non-Toyota brand. The slight decline in month-over-month prices can be traced almost exclusively to Toyota products, CNW reported. Virtually all other mass-market brands were up or flat compared to January.
Auctions have started selling the recalled vehicles again.
Ricky Beggs, managing editor of Black Book, said that in the last two weeks since the repaired recalled Toyota products have appeared back on the auction there has been increased interest.
"The most positive attention bringing increased selling prices were reflected in the trucks, CUVs and SUVs," Beggs said. "At least one auction indicated the demand on some of the car models from Toyota weakened somewhat."
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