Toyota values unlikely to be affected by recall - AutoTrader CEO
Johannesburg - AutoTrader CEO George Mienie has explained that motorists don’t need to worry about the value of their Toyotas plummeting following news that Toyota SA Motors will recall an estimated 700 000 vehicles in this country.
This is not the first major recall by the company.
"In early 2010, certain Toyota and Lexus vehicles operating in the United States were found to have an issue with so-called ‘unintended acceleration’. The company recalled nearly 8 million vehicles. The impact on resale values was dramatic. In the United States, Toyota vehicles carried a price premium of 40% above their competitors prior to the recall. During the recall, this shrank to 20%. Ultimately it settled at 30%," Mienie recalls.
What about resale values?
He says the same won’t happen in South Africa now. "It’s true that a recall can affect resale values – but only if this is an isolated incident linked to one manufacturer," he explains. "However, in this case, most car manufacturers are being affected by the recall. So, this is unlikely to impact on Toyota residual values in South Africa."
All over the world, car producers have been recalling vehicles equipped with Takata-produced front airbag inflators.
"This is due to concerns that they may explode and spray metal fragments into the vehicle’s cabin. A total of 65 to 70 million airbags are affected. It is claimed that at least 20 people have died as a result. No injuries or fatalities have been reported in South Africa," explains Mienie.
Toyota customers can go towww.toyota.co.za/recall to see if their cars are affected.
The National Highway Traffic Safety Administration (NHTSA), which is responsible for setting and enforcing motor vehicle safety standards in the United States, has a comprehensive list of affected vehicles on its website.
"We would advise motorists to go to this website, check and see if their vehicle is affected and then call their dealer to discuss. Bear in mind that this is a list of vehicles sold in the United States, and so the South African model may not be affected," Mienie advises.