• Mar 16, 2009
One of the strongest selling points that Japanese brand vehicles like Toyota and Honda have had going for them over the past decade or two has been the stronger resale values that have resulted from perceived higher quality. While increased depreciation doesn't matter much to people who buy their vehicles and keep them for more than a few years, it does hurt manufacturers. In recent years, a large portion of those pricey trucks and SUVs have been leased, where the monthly payments are largely based on the vehicle's expected residual value at the end of the term. When that residual is lower than expected, the automaker's financing arm loses money – a phenomenon that has been a particularly painful reality for Detroit's automakers.

Now, like the rest of the industry, Toyota is starting to get hit by falling residuals on both cars and trucks. Some of that is surely due to the general market conditions right now, but some critics suggest that the fact that Toyota's residuals are falling faster than other companies could point to growing awareness of quality issues. At the end of 2008, an average three-year-old Toyota was worth 46.5 two years earlier. Like other brands, Toyota's trucks have been especially hard hit, dropping from over 60. In particular, Tundra residuals are on a big downturn, nosediving to 40.1 just one year earlier. Despite the drop, the Tundra's resale value remains higher than Chevrolet's Silverado (39.8) and Ford's F-150 (32.2), so while all is not lost, the race for residual supremacy is getting tighter. Thanks for the tip, Leonard!

[Source: Automotive News - sub req'd]


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    • 1 Second Ago
  • 41 Comments
      • 5 Years Ago
      That headline is pretty overdramatic, when you take into account the last sentence of your blurb:

      "Despite the drop, the Tundra's resale value remains higher than Chevrolet's Silverado (39.8%, down from 49.6%) and Ford's F-150 (32.2%, down from 45.6%), so while all is not lost, the race for residual supremacy is getting tighter."

      Sure, it's falling more than competitors, but it's still higher overall.
        • 5 Years Ago

        The reason for that is because the competitors sell thousands more of their trucks than Toyota. It's called suppy and demand.
        • 5 Years Ago
        IMAG, that is exactly what I was thinking. The Toyota residuals are till higher than the other trucks.

        Move along folks!
        • 5 Years Ago
        I'll take a 0.3% hit to get a Silverado over a Tundra. If I can manage to pay $100 less up front for a Silverado than a Tundra than my dollar-measured (not percentage) drop in value is still less.
        • 5 Years Ago
        Yeah if you're lucky you may be able to still pick up to US trucks for the price of one! Now that's a bargain.
        • 5 Years Ago
        Were that to be true, you'd have seen 2 for 1 deals prior to the competitor meltdown.
      • 5 Years Ago
      Have not heard from him in a while???
      • 5 Years Ago
      The Tundra was a trigger reaction by Toyota to the US market. It should never have been that short sighted like the rest of idiots in the US car industry to make such a vehicle.

      Now they are paying the price and being hit with the same issues that GM, Ford, and Chrysler are dealing with. With the exception that at least the Toyota trucks are better quality overall. Not by much but still better.

      But oh what a dumb move from Toyota. It should stick with what it knows best...small cars that can be made to be efficient.
        • 5 Years Ago
        You're comparing a Camry to a Tundra....lol.
        • 5 Years Ago
        You mean like a Camry that is bigger, wider and more powerful than it was ten years or, or the Avalon, a full size car?
      • 5 Years Ago
      So really, this illustrates that truck buyers, as of late have - been hooked on leasing?

      Makes sense since the market was flooded with these vehicles. Don't get me wrong, theres a place for trucks. But when you start seeing trucks on the road with lift kits, leather interiors and are spotless every day of the week you have to wonder.
      • 5 Years Ago
      I would like to point out a 3 year old Tundra is not the current body design, but the smaller more dependable Tundra. The comparison is skewed by this fact, the present larger Tundra will have a substantially larger drop in residual value after three years. The present Tundra has not been excepted very well by the truck buying community, it's regarded by a high percentage of truck buyers as a poser.
        • 5 Years Ago
        Moon Rover, interesting comment. My 2005 Tundra has been a trouble free vehicle over 72K miles. The only thing I really like about the new one is the bigger V8. I think I will just hang on to my 05 Tundra. It has a feature no other new truck has...no payments! Hmmm, no payments or a step up handle...tough one :)
        • 5 Years Ago
        So you judge a truck by Youtube videos...nice.
        • 5 Years Ago
        And rightfully so, if the YouTube videos of it truck bed flexing when driving over moderately bumpy roads are what's to be expected from a Tundra. It's also had some drive train related recalls, and some engine problems with the V-8.
        • 5 Years Ago
        Noz - you're a twit. GO drive you spaceship egg cars and leave the real vehicles to the grown ups.

        Yikes - Oh, I'm terribly hurt by your insult. Not. What's the matter? Can't feel good about your job without the requisite put-downs of blue collar workers?
      • 5 Years Ago
      so you basically said that due to new car prices being low, used cars pricing are plummeting and that Toyota's used cars still hold best value, even the Tundra pickup, area where american competitors are the strongest?

      okie dokie, lol.
      • 5 Years Ago
      Did not the Tundra have some camshaft issues?
        • 5 Years Ago
        Yes it did, along with some electrical systems issues and transmission problems.
      • 5 Years Ago
      Tundra is hideous, and I'm not even a brand maniac but a rational buyer. The truck is a disappointment. It's bloated, fat, ugly from every angle inside and out.
      • 5 Years Ago
      Len,


      Hey retard, the tundra had one recall. It affected 27 total trucks and has not had any problems since. Get your facts straight you whiny prick! Can't say the same for the POS Ford, Dodge or GM. Hate Toyota all you want, it is still a far superior product to the big 3. Keep supporting the UAW and their greed. America bailed out the GM and Chrysler or they would be nonexistent. Maybe you should try to be nonexistent too.

      http://www.internetautoguide.com/auto-recalls/09-int/2007/toyota/tundra/index.html
        • 5 Years Ago
        I suppose that excuses the cracked welds in the tailgate, output shaft failures, camshaft issues, wobbling bed, tie rod ends, rattling dashes (only known cure is to spray with wd40 every two weeks), inoperative radios, failed electronics, paint issues, cheap ass frame, cheap ass dash, poor economy, vibrations at speed, etc.
        If we get beyond the namecalling perhaps then we can have an intellegent conversation about the horrible mistake you made when you bought that miserable excuse of a so-called truck.
        Out here in the real truck world, you're Tundra is a joke. Two of our contractors did have them at one time. Now they look back at them like a horrible ex-wife that took them for half.
      • 5 Years Ago
      JDMLover comic rationalization in 3...2...1...
      • 5 Years Ago
      Its stupid the way resale values are calculated. Not trying to be a Detroit Big three slappy, but a much of the "resale" drop by the big three happens BEFORE the customer buys the Truck. They use MSRP - not actually selling prices to calculate the starting price.

      So a truck with a MSRP of $30,000 with $4,000 of rebates loses 13% of its resale value before the customer ever buys it. Since the Detroit three give much larger rebates - it hits their resale % much harder.
      • 5 Years Ago
      Welcome to the top of the pile Toyota.
        • 5 Years Ago
        I know it's hard to read the whole story when they have a negative Japanese headline but if you look in the last paragraph it's still better than GM & Ford.
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