Money

Honda Owners and Buyers: Don't Worry

By Jerry Edgerton

Updated on: August 10, 2010 / 5:53 PM EDT / MoneyWatch

If you own or are shopping for a Honda, you may be anxious about the latest headlines on Honda recalls. Monday's recall was Honda's third big one since 2003, for a total of 1.4 million vehicles. Like the two earlier recalls, this one affects ignition locks; in this case, the locks on 384,220 of Honda's 2003 and 2004 Accords, Civics and Elements. (To see if your Honda is involved in the recall, go to this Honda site.) But auto analysts say you needn't worry about the safety of driving a new Honda or the future resale value of a Honda you own.

The new Honda recall concerns a part in the ignition lock that can wear out and let the driver remove the ignition key without having the transmission in park, allowing the vehicle to roll. The National Highway Traffic Safety Administration says there have been at least 28 complaints about Honda's ignition locks, 10 involving accidents.

Despite this recall and others involving Honda's airbags and brakes, Honda vehicles retain top rankings for dependability from Consumer Reports and J.D. Power. And this week's news shouldn't affect the recalled vehicles' resale value, according to automotive information specialist Kelley Blue Book. "While the numbers of vehicles impacted is significant, the consequence of not repairing the defect appears to be small," says Eric Ibara, director of residual value consulting for Kelley Blue Book's kbb.com. "Only one minor injury has been mentioned so far."

Resale values drop only when recalls like Toyota's sudden acceleration and steering problems get massive publicity, Ibara says. After those recalls, Kelley Blue Book dropped the resale value on Toyotas by as much as 4%.

Those values have since rebounded, but Ibara believes Toyota resale values will be affected in the long run. Toyota already is suffering with new-car shoppers. Only 22% of those shopping on kbb.com considered Toyota models recently, compared with 30% a year ago.