Perceptions matter, not facts

Toyota car owners are going to be able to pursue claims that the value of their cars has fallen because Toyota didn’t disclose or fix defects that made their cars accelerate suddenly (full story here). Toyota has said that there is no evidence of defects.

I don’t know what the legal outcome will be but what affects the value of the car is the perception of the buyer, rather than whether there is really a problem. If they think that there is a problem with the car then the value they will pay is lower, even if there is nothing wrong with the car.

The two sides shouldn’t be arguing about whether there are actually defects in the cars but whether Toyota has allowed a perception of problems to develop.

Perceptions are what matter to people not necessarily the facts.

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