NADA Used Car Guide: Sales impact from major vehicle recalls – The Business Journals


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NADA Used Car Guide: Sales impact from major vehicle recalls

Estimated impact of recalls on Ford, Toyota and General Motors

PR Newswire

McLEAN, Va. Sept. 9, 2014

McLEAN, Va. Sept. 9, 2014 /PRNewswire-USNewswire/ — With more than 39 million vehicles recalled for safety-related issues through August, 2014 is on pace to shatter the previous high set in 2001 when 38.8 million vehicles were recalled for various defects.  While most recalls are simple, on some occasions a recall is serious enough to have a lasting effect.

NADA UCG explores the effect that major recalls have had on automaker’s new and used vehicle sales in its latest white paper The Impact of Vehicle Recalls on the Automotive Market.

“Research has shown that minor, well-handled recalls have an insignificant effect on automakers. However, cases involving a large number of vehicles, numerous reports of severe injury or death, and extensive media coverage can impact market performance” said Jonathan Banks, Executive Automotive Analyst at NADA Used Car Guide.

Brand perception prior to a recall – determine the severity of the damage. To illustrate this, NADA’s analysts examined the market impact of the high-profile 2000–2001 Ford/Firestone tire and 2009–2010 Toyota acceleration recalls, as well as the General Motors ignition switch recalls that have dominated industry headlines in 2014.

In 2000 and 2001 Bridgestone/Firestone and Ford recalled millions of Firestone tires to address tires that were failing prematurely on Ford sport utilities. The defect caused multiple deaths and captured media headlines for an extended period of time. Even so, the impact to used Ford truck prices was minimal.

“Although Ford’s competitive position was slowly getting better, consumer expectations of the brand were relatively low at the time,” said Mike Stanton, Vice President COO of NADA Used Car Guide. “By NADA Used Car Guide’s measurement, the Ford / Firestone tire recalls reduced the competitiveness of Ford’s used truck prices by just 2 to 3 percentage points at its peak. By 2002, Ford truck prices had essentially reassumed their pre-recall trend.”

By contrast, Toyota fared much worse when it recalled nearly 8 million vehicles for issues related to unintended acceleration in late 2009 and early 2010.  Unlike perceptions of Ford earlier in the decade, the universal perception of Toyota as a builder of high-quality, reliable vehicles led to a dramatic contrast between pre- and post-recall perceptions of the brand.

Before the recalls, used Toyota cars and trucks carried prices nearly 40% higher than those of direct competitors. Afterward, Toyota’s advantage over the competition was reduced to 30% – 10 percentage points below its pre-recall position.

General Motors’ ignition switch issue is the first recall event since Toyota’s with conditions grave enough to threaten brand value. To-date, GM has recalled 2.6 million compact cars globally for defective ignition switches that could be inadvertently switched off preventing airbag deployment in the event of a crash. Despite being associated with multiple deaths and intense media coverage, GM’s new vehicle sales and used vehicle prices have gone relatively unscathed.

“GM’s new vehicle sales are up 3% year to date and we’ve observed a just slight 1 to 2 percentage point decline in the competitive position of used Chevrolet car prices since April – discernible, but far short of the compelling evidence collected after Toyota’s recalls” said Jonathan Banks, Executive Automotive Analyst at NADA Used Car Guide.

Click here for the full report The Impact of Vehicle Recalls on the Automotive Market.

About the NADA Used Car Guide 

Since 1933, NADA Used Car Guide has earned its reputation as the leading provider of vehicle valuation products, services and information to businesses throughout the United States and worldwide. NADA collects and analyzes over one million combined automotive and truck wholesale and retail transactions per month. Its guidebooks, auction data, analysis and data solutions offer automotive/truck, finance, insurance and government professionals the timely information and reliable solutions they need to make better business decisions. Visit nada.com/b2b  to learn more.

About NADA 

NADA represents nearly 16,000 new-car and -truck dealerships with more than 32,000 domestic and international franchises. For more information, visit www.nada.org .


Classic Vehicle Restoration and Repairs by Tx Classic Cars


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Vintage and Classic Vehicle Restoration and Repairs by the Experts

At Tx Classic Cars, we offer all services related to classic vehicle restoration and repairs. Located in Austin, Texas, we can accommodate any make and model classic car, kit car or custom build project you bring our way. While we specializes in complete frame off classic vehicle restorations. we can restore, repair, modify, convert, and appraise your classic car or truck.

Not just Vintage and Classic Vehicle Restorations

While classic vehicle restorations are our specialty, our master mechanics and knowledgeable staff are equipped to handle your automotive repair and upgrade needs. In addition to our classic car restorations. we also provide automobile customization services including vehicle retrofitting, upgrades, modifications, modernization and repairs. From performance tuning to suspension and exhaust upgrades and A/C conversions, we ll bring your dream car to life.

Vintage and Classic Car Appraisals

At TxClassicCars, we love classic cars and it shows. If you are a vintage or classic car owner, we want to help protect your asset with an accurate classic car appraisal. Knowing the value of your car is more than just an insurance necessity, it will help you determine a selling price if you should decide to sell or provide you with valuable information pertaining to your net worth. Regardless of the reason, the skilled professionals at TxClassicCars will give you an accurate picture of what your classic car is worth.

Vintage and Classic Vehicle Restorations and so much more

TxClassicCars pairs master craftsmanship with classic vehicles to give you a unique experience. Our staff is here to assist you in the complete restoration. repair. modification. or appraisal of your dream car. Contact us today to learn how we can help put you in the driver s seat.


Car Donation – Donate Car – Vehicle Charity Donation Program


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Car Donation and Non-Profit Charities

On this site, you choose any one of our 500+ 501-C3 non-profit charities you want to benefit from your used car donation and you receive a tax deduction for your vehicle donation. All charities are pre-qualified to ensure your donation is tax deductible. Once you submit your auto donation, our experts work to maximize the return on your donation,thereby providing you with the highest tax deduction allowed by law and providing the selected charities with the most funds to provide services, conduct research and outreach.

Simply complete our ‘Donate Your Vehicle Now’ form to the right, or call us Toll-Free at 1-877-227-7487 anytime, seven days a week to start our no cost, no hassle vehicle donation process. Phones are answered by our experienced and trained operators. You will be contacted by our towing agent who will arrange a speedy pickup. The towing agent will provide a pickup receipt and the charity you select will send you a tax deduction letter. After your vehicle is picked up by the towing agent please Complete the Online Survey. so we can make sure we continue to be the best Vehicle Donation Center in the United States.

To learn more about how to donate a car, boat, motorhome, etc. and get answers to the most frequently asked questions, please click here.

DONATE YOUR VEHICLE NOW

no cost, no hassle, absolutely FREE vehicle donation process


Buy or sell a vehicle (transfer ownership)


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Buy or sell a vehicle (transfer ownership)

What must the seller and buyer do to transer vehicle ownership?

The seller  must either

  • complete and sign the transfer ownership section of the title certificate, and
  • sign a bill of sale
  • provide other acceptable proofs  of ownership and transfer of ownership

The buyer  must

The proofs of ownership needed to register and title a vehicle in New York are different for different types of vehicles (for example, cars, trailers, boats, snowmobiles, manufactured homes).  Find the acceptable proofs ownership for your vehicle, or learn what to do if proof of ownership is not available .

Before you buy a vehicle, make sure it is not flood damaged.

You can check the National Insurance Crime Bureau database to see if a vehicle is flood damaged. You will need the Vehicle Identification Number (VIN).

No. You cannot change the name on the vehicle registration or the title certificate to the name of another person. You must transfer the ownership of the vehicle.