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They did indeed earn their reputation. They've been trying to discard it but the general public isn't paying attention.
They earned their reputation a couple decades ago when domestic companies were not keeping up. In the meantime, the roles have not reversed but have definitely at least met in the middle -- Toyota has abused their reputation, trading quality for quantity. The Toyota Tundra has been plagued with major recalls and safety issues. My dad's 2002 Tundra has, in the long run, made me glad I got a 2002 GMC Sierra instead, even though at the time I felt a lot more confident in Toyota. I'm under the impression that Honda hasn't abused their reputation the way Toyota has, but I don't have data or personal experience.
At this point, it's my opinion that Japanese cars are riding on a no-longer-deserved reputation and their prices are inflated. MSRP isn't inflated but they seem to lack incentives that are found on other makes, and used value is definitely inflated.
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