Customers worry GM recalls could affect resale values
Sat, 17 May 2014 03:00:00 GMT —
Jimmie Lewis is a self-proclaimed General Motors guy. He works at Orion Assembly in Lake Orion. So it's no surprise his wife, Janeen, is in the market for a GM vehicle.
But the Chevy Malibu sheâ??s eyeing is part of the latest recall.
â??You don't know if you can really trust to buy a car,â?? she said.
It's a dilemma some customers face amid the massive GM recalls and they say they wonder how those recalls will affect resale values.
Don Brock of RPM Auto Sales in Clio says he hasnâ??t seen much impact.
â??It actually kind of works out in our favor,â?? he said.
Brock said about two-thirds of the cars he sells are General Motors. He added, in a GM stronghold like Genesee County, brand loyalty usually wins.
Kelley Blue Book, which tracks used-car prices, said it hasnâ??t seen any negative impact on the used car values of recalled GM vehicles. Eric Ibara, Kelley Blue Bookâ??s Director of Residual Value Consulting, said part of the reason is the vehicles on the recall list are several years old and are no longer being sold new. Ibara also said a fixed car is generally seen as an improvement.
But it might take Janeen Lewis a little more convincing to get her to drive that Malibu off the lot.
â??I need to get rid of my little car there, but I know that it's OK, so I'm gonna hang on to it for a little bit longer,â?? she chuckled.