Toyota Losing Critical Edge As Residual Values Plummet

David- While I don't underestimate Toyota in the least. I do think that once you get as big as GM and Toyota it is increasingly difficult to maintain a grip on all aspects. As a result you start to suffer from being so big. So while I think they will try to address it, it will take some time.

Don't get sucked-in by 969.

969 is a German car fan that is trying to make Japanese cars fans look like idiots. 999 is the real deal.

Thanks 43LE!

Yes, BMW is in bigger financial trouble. The might go bankrupt and have to be bailed out by VAG or Toyota.

BMW's net profits tumbled nearly 90 per cent in 2008, but bosses have insisted the company is in robust health.

Official figures revealed today show that BMW made 330 million Euros (around £303 million) in 2008.

The 89.5 per cent drop in profits has been put down to 2.4 billion Euros (£2.24bn) of exceptional costs linked to bad debts, personnel costs and provisions to cover risks on used car markets.

BMW's bad news rounds off a pretty stinging day for the car industry, after Saab announced earlier today that it is cutting 750 jobs, and Volkswagen predicted a sizeable drop in profits in 2009.

http://www.autocar.co.uk/forums/t/5302.aspx
http://punchontheweb.com/Article-print2.aspx?theartic=Art200903133122628
http://news.bbc.co.uk/1/hi/business/7939450.stm
http://www.independent.co.uk/news/business/news/bmw-profits-fall-90-as-germany-slumps-again-1643988.html

DocMarten (AKA The Troll)

I take it you do not work in the world of finance; a profit is a profit, BMW preformed better than any domestic carmaker and several foreign. You have provided the same article over and over, none say anything about bankruptcy or BMW being in bad shape, or selling to another maker. When you make statements like those it’s called “make believe”.

Buy the way BMW has yet to ask the government for money like GM, Chrysler, Ford, Opel, Saab and yes Toyota.

Go play pretend some place else.

Coincidence that the market bottoms out, and resale values drop at the same?
I think not
DP

Yeah, I wonder how others compare?

you guys are right. new car sales are WAY down 'cuz of the economy and difficulty getting loans.

no reason why the same is not true for USED cars as well. simple economics dictates when buyers are scarce, prices will decline. if this is true even with used toyotas, everyone else's used cars probably are seeing lower prices too.

The truth about Toyota "quality" is coming to light.

Toyota will recover, BMW might not be so lucky. They might go bankrupt and have someone bail them out. This is very sad. Toyota will be fine.

Yea, I'd have to realistically agree with Agent009 on the point that Toyota is so large it would be difficult to control all aspects without some temporary setbacks from time to time. Still, residual value is just one of the many important facts buying a new or used name brand vehicle. Again, I'm confident the big Toy has what it takes to survive hard times and it's more than just having a lot of cash.

Toyota probably still leads the world in resale values...of course don't mention that 009.

Toyota NEVER lead the world in resale value. VW was(still is) the leader in the rest of the world and Honda in US had better resale values than Toyota in this segment.

LOL at brownStar and bigIdiot! no pair of fools are so OUT OF TOUCH with the reality of automotive durability and quality.

the latest CR annual auto issue is out now.

check out the frequency of repair charts. VWs start having the dreaded big BLACK dots from year two! TEN year old toyotas remain in better shape than 2-yr old VWs.

the best that can be said about chrysler and gm junk, is that at least they are NOT as bad as VWs. (and seeing the plethora of black dots on those products, it's NO WONDER that buyers are staying away in droves from chrysler and gm stores.)

if toyota residuals are slipping, everyone ELSE's should be PLUMMETING, considering how the respective cars hold up with age.

Hey XYZZ,

then where are all these supposedly reliable 10 years old Toyotas? Have you ever wondered why you cannot see any old Japanese cars on the road? It's because they don't last, Eistein. You can see plenty of old German cars in incredible condition, you can see plenty of old American cars on the road but the Japanese made c**p is nowhere to be found. Toyota sold an incredible amount of Corollas and Camrys in US, yet you cannot find ANY in working condition that are older than 8 years old. Use your brain, puppet! We are talking about millions of 8+ years old Toyotas that disappeared in thin air(resting in junk yards). If you cannot see 8+ years old Toyotas on the road that means they are not reliable, in spite of what the CR(car idiot Bible)says. Use your brain.

"Toyota sold an incredible amount of Corollas and Camrys in US, yet you cannot find ANY in working condition that are older than 8 years old. Use your brain, puppet! We are talking about millions of 8+ years old Toyotas that disappeared in thin air(resting in junk yards). If you cannot see 8+ years old Toyotas on the road that means they are not reliable."

YOU don't see 'em because of your BLINDERS. cf. the current issue of Scientific American BRAIN for an article of how one's prejudices can affect one's very perception of REALITY, and the very wiring on one's brain. (example: you cannot even spell "Einstein" idiot!)

there are also thousands of cars everywhere, especially in moderate climates. bringing in 2 more factors: 1) you just do not NOTICE most, unless it is markedly different from the 'herd.' 2) cars have an easy life in moderate climes. come to interior alaska and you've see automotive Darwinism at work. ONLY the tuff survive. VW doesn't even have a dealership here anymore. they had one once, but because VWs have such a hard time surviving here without massive money injections, the buyers disappeared. VW fans gotta go south to find a dealer!

the same appies to audi and bmw as well! only benz still has a dealership; but they make most of their money selling mazdas!

meanwhile, the toyota store has grown and taken over the subaru, hyundai, and HONDA franchises. it's not the most loved dealer (exploiting the toyota rep and), but it certainly is the most profitable! even though there are a LOT of old toyotas out here; people keep them forever until they FINALLY die, because they CAN.

old german cars are rare here, almost as much as dealers. heck even NEWish germy cars are not so common; old GM clunkers far outnumber them. and most are in far worse shape than old toyotas, subarus, and hondas. (most are kept 'cuz the owners just can't AFFORD newer cars, with much of their transportation dollars going to maintenance and REPAIRS.)

and btw, the "8+ year old toyotas" that are VERY COMMON here are more like 10 - 20 years old.

most people think their non-japanese cars are just as reliable, simply because the engine still starts on demand every time. big deal, EVERY modern car can do that.

but look at the things of lesser importance but still of significance: namely, rattles, and failure of 'minor' components. the first reflects build quality, the latter includes things like the audio system and switches for power eqpt., or the motors of same.

with audio gear and electrics, the euro cars are EVEN WORSE than detroit.

just about ALL cars eventually get body integrity and minor electrical system problems. when toyotas DO start having problems, it tends to be those very MINOR ones, and generally only after 5 - 7 years.

VW/audi start having those from just the FIRST or SECOND year. and they even get ENGINE problems before toys even have very MINOR problems. as for the drivetrains themselves, just about NO toyotas have even a hint of 'em before getting to be 10-15 years old.

smart people here would pick a 'seasoned and PROVEN' 5-year old toyota, subaru or honda before they'd buy even a ONE year old VW. the few VWs seen here tend to driven by young kids, who just don't know any better.