Takata Airbag Recall Effect on Used Pricing

WOBURN, Mass. –

The effects of a recall can do quite a bit more harm to a vehicle’s image than the immediate problems they typically cause – they can also dramatically accelerate their rate of value depreciation.

That’s according to the analysts at iSeeCars.com, who recently released the results of a study they conducted to see the effect of a specific situation, the Takata airbag recall, on the depreciation rate of the vehicles they were in.                         

Their findings are staggering – according to their results, based on an analysis of over 19 million used vehicles including vehicles recalled for potential issues with Takata airbags and comparable, unaffected models, the affected vehicles saw an average of 2.2 times higher price drops than vehicles not under the airbag recall.

Based on data during the recall period, from Oct. 2014 to Feb. 2015, Takata-affected vehicles saw a price decline of 7.1 percent year-over-year, compared to a 3.2 percent decline in price for vehicles not affected.

“It seems like the dramatic risk of injury associated with these defective airbags may have led to a decrease in perceived value,” said Phong Ly, iSeeCars.com’s chief executive officer. “Since most consumers trade in their cars rather than sell them privately, it means they’re getting hit even harder on their trade-in values.”

The study also narrowed its focus to identify the individual vehicles hit hardest by these perceptions, noticing that the average price decline for the top-10 models ranged from 1.3 to 3.5 times more than the average decline for similar vehicles not subject to the same recall. Here is that list, provided by iSeeCars.com.

10 Takata-Recalled Cars With the Biggest Price Drops

* Coupe and convertible.