Toyota resale values plummet

CHICAGO -- Toyotas are losing value by the week.

Kelley Blue Book dropped the resale values of recalled Toyotas yesterday for the second time in four days , leaving them as much as 4 percent or $300 to $750 lower than a week ago, depending on the model.

Recalls and a slow response to safety questions have put a dent in the market value of cars long seen as money in the bank for their owners.

As values drop and safety issues keep surfacing, the world's No. 1 carmaker faces increasing risks that even long-steadfast customers will defect.

After all, a key factor in Toyota's rise to the top was its reputation for quality vehicles with high resale values.

"Toyota has fantastic loyalty, but this is definitely going to have a real erosion in that," says Juan Flores, director of vehicle valuation for Kelley, which just two months ago named Toyota the best brand for resale value.

The auto research Web site Edmunds.com estimates resale or trade-in values could fall up to 10 percent in the short term. How far they drop over the longer haul will depend how long the confusion lingers.

Already, some dealers are refusing to accept Toyotas for trade while others are paying considerably less than they did just two weeks ago.