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Recall fails to dent Toyota residuals

The widespread and often scathing coverage of Toyota’s massive safety recall has had no discernible impact on the residual values of the brand’s vehicles,

“Many Toyota models still boast some of the strongest residuals in the UK used car market, and there are no signs that this has changed as a result of the media furore surrounding the recalls,” said Johnathan Brown, car editor at Glass’s.

“The Yaris supermini and Aygo city car retain their status as top-three residual value performers in their respective segments.

“Also, the RAV-4 compact SUV has benefitted from the general resurgence of interest in the 4x4 sector that resulted from the recent severe winter weather.

“Since the end of last year RAV-4 values have matched the increases for the sector, with rises of between five and seven per cent.

“Meanwhile the iQ is still enjoying a honeymoon period in the used car market following its launch last year, with second-hand examples being snapped up quickly and enthusiastically as soon as they become available.”

Supply remains a critical factor affecting the values of used Toyotas, said Brown.

“There is a severe shortage of good-quality used Toyotas within the dealer network and, despite the recall crisis, demand remains sufficiently strong to underpin values.”

Many of Toyota’s famously loyal customers have actually had their faith in the marque reinforced by the effective management of the recalls programme, says Brown.

“Toyota dealers have responded very well to the recall issue, processing bookings and completing the necessary modifications promptly and efficiently.

“Senior dealership managers have also been making time to speak to individual customers to provide reassurance and tackle any remaining concerns.

"Faithful customers that have been treated well will continue to be evangelists for the brand.”

As regards those consumers without any allegiance to Toyota, Brown is sceptical that the recall issue will cause long-term damage.

“There have clearly been some prospective new or used car buyers that are not including Toyotas on their shortlists because of safety concerns.

“However, trade sentiment – from within and from outside the Toyota network – suggests that consumer confidence in the brand should regain any lost ground during the next few months.”

Toyota issued global recalls for millions of cars across its model range for accelerator pedal or braking system problems.  Toyota GB said in the middle of March 90,000 vehicles had been into dealers for required work.

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