The Toyota Tundra engine failure recall murders its resale value
Owners of the current generation Toyota Tundra haven’t been able to catch a break. Many drivers are facing a recall due to engine failure, and as a result, they’re having trouble trading in their trucks as the resale value plummets.
The Toyota Tundra engine failure recall destroys its resale value
According to Pickup Truck Talk, the current generation Toyota Tundra has failed to rebound after its massive recall including over 100,000 trucks due to engine failure.
Some dealerships are rejecting Tundra trade-ins because the gas-powered models need a new engine. The engine replacement is covered at no cost to owners.
However, dealerships are responsible for completing all recall-related repairs before they can sell a vehicle. It’s unclear how long replacing the engine could take, and dealerships don’t want trucks that they can’t sell sitting around.
But Tundra models that have received an engine replacement are still struggling. People are losing thousands as dealerships lowball them.
Dealerships fear that because of the widespread engine failure, other drivers won’t want to buy them. The Tundra Hybrid isn’t included in this recall, but dealerships are afraid that it will be included later.
One driver reported that he lost $88,000 due to receiving a wholesale value for his Toyota Tundra. The model that Pickup Truck Talk reviewed was quoted to be worth about $43,400 in April, but now it has dropped to $36,600. That’s a $6,800 drop in just a few months.
Current Tundra models are depreciating by about 7.0 to 8.0% after two years of ownership. But older models with the V8 engine actually have an increasing value.
But the previous generation Tundra is known for being durable, reliable, and long-lasting. So far, the new model hasn’t been living up to its reputation.
Also, the recall is related to debris that may have been left in the engine during the production process, leading to engine failure.
It’s unclear how long replacing each engine will take, but it will completely correct the problem. Maybe resale values will turn around after each truck is repaired.
