They say the time to buy real estate is when there’s blood in the streets. I guess the corollary of that for automobiles is that it’s time to buy cars when there are recalls in the news.
The news that Toyota Motor Corp. is recalling eight models on top of an earlier recall it expanded last week to more than 5 million vehicles over concerns about sudden acceleration has some people putting the brakes on plans to sell or trade their used Toyotas.
Even James Bell, an executive market analyst with Kelley Blue Book, the outfit that sets prices for new and used cars, is having trouble moving his used Prius hybrid, normally a very popular model. “It just has the floor mat issue, but I’m not getting a lot of bites on it,” Bell said.
If you’re trying to move out of one of the troubled Toyotas, you may not have any choice: Some dealers just flat won’t take the cars in trade until the problems are cleared up. For those trying to trade or sell, the best bet may be just to wait as little as another week or two to see how quickly the recall issues can be fixed.
Steps you need to take
“The first thing is to wait,” said Philip Reed, senior consumer advice editor at the auto site Edmunds.com. “Even two or three weeks from now there could be a huge difference.”
Your next step is to see if you car is even affected. If it was built in Japan or doesn’t have a gas pedal made by CTS Corp., then you’ve got a model that can be sold worry-free, Reed said.
Otherwise, be prepared to follow up on the recall, get the repairs made and save the paperwork to show prospective buyers that your Toyota is tip-top. After a problem this big, Toyota is likely to make sure things are right, and not fix the gas pedal with duct tape and bubble gum.
“I don’t think there’s any reason for somebody to make a panic move and think, ‘I’ve got to get rid of this car,’?” Reed said.
If you’re leasing, this is one of those bright times when you can simply shrug and say, “Not my problem.” Even if there is a big hit to the resale value of Toyotas after these two big recalls, it won’t cost you a penny more. Just get your lease vehicle fixed, if it is recalled.
Be ready for hassles
And if you are buying, it’s certainly a time to aggressively haggle for that used Matrix, since you know you’ll have to be dealing with the hassle of arranging the recall and repair right away.
Toyota’s woes bring up the whole issue of making sure any used car you buy has been brought up to date with recall repairs, said Jeff Bartlett, deputy editor for autos at Consumer Reports online.
“Take it to the dealer for inspection and ask if it’s up to date on recalls,” Bartlett said. Especially with a car that’s changed hands more than once, “the owner may or may not know.”
