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Values of used Toyotas continue to slide, Kelley Blue Book says

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Values of used Toyotas continue to slide, Kelley Blue Book says

Arlena Sawyers

Automotive News -- February 9, 2010 - 12:35 pm ET

Kelley Blue Book says it will lower the used-car values of recalled Toyota vehicles by 1.5 percent on Friday, Feb. 12.

It will be the second time in as many weeks that the company behind the used-vehicle price guidebook made downward adjustments to the vehicles in response to the growing supply of unsold Toyotas on dealer lots and at auctions.

Toyota Motor Sales U.S.A. Inc. suspended sales of vehicles involved in its massive recall until those vehicles could be fixed.

“At this point, it's clear that the market is shifting away from these Toyota products right now, allowing us to project their lowered values,” said Juan Flores, director of vehicle valuation at Kelley.

“In the coming weeks there will be much more data available on the sale of used Toyotas and any shifts in demand, which will provide greater insight into how the values of these vehicles might be affected in the future.”

Kelley, which makes weekly adjustments to its used-vehicle values, lowered the prices of the recalled vehicles by 1 to 3 percent on Feb. 5.

Prius drops

Flores said the transaction price of new 2010 Toyota Prius hybrids, which were recalled today, have dropped about $1,000 to $1,500 below sticker price and are close to the dealer invoice value. As a result, the company is adjusting Prius’ New Car Blue Book transaction value downward.

Older Prius models are not involved in the recall but have seen a 1.5 percent drop in their used vehicle values, Flores says.

Amid an investigation of 2009 and 2010 Corollas for steering complaints by the National Highway Traffic Safety Administration, Kelley is dropping the values of 2009 and older used Corollas by 3 percent.

Flores said Kelley expects weakened demand for Corollas and some Lexus products to continue as additional investigations continue.

Affected by the recall, and Kelley Blue Book’s across-the-board cuts in their residual values, are the 2007-10 Camry, 2005-10 Avalon, 2007-10 Tundra, 2008-10 Sequoia and Highlander and 2009-10 RAV4, Venza, and Matrix.

The action also covers 2009-10 Pontiac Vibes made by Toyota in a joint venture with General Motors Co. in Fremont, Calif., New United Motor Manufacturing Inc.

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