Cheap Japanese used cars are not always good

By Shiotsu

Many times our potential customers complain that our prices are little higher compared to those of some other Japanese used car exporters. Then I tell them why those used cars are so cheap.

There are many used vehicle vendors who specialize in cheap cars. How do they keep their prices so low? Their secret lies in the fact that they buy only damaged cars or very low grade cars, for prices as low as 10,000 yen or sometimes even free. Then they replace the damaged parts by cheap used parts and make cosmetic changes so that the car looks like any other car. However, the reliability of such refurbished cars is very low. So you’ll get what you pay for.

We, on the other hand, buy our vehicles from our network of reliable used vehicle dealers and auto auctions. We only buy vehicles having good auction grades and history. Our in-house mechanics test drive these vehicles to make sure that there are no other problems which are not mentioned in the auction grade reports. That’s why the vehicles we supply are of very high quality. And that’s the reason we have many repeat customers. In fact our margins are one of the lowest. We just want to make sure that our customers are happy and they get the quality what they pay for.

21 Reasons for exporting a vehicle from Japan

Written by: Ascent Trading Ltd.


Introduction

There has never been a better time to import a used car from Japan and save big dollars. Exports from Japan have been steadily increasing for the last three years as more and more dealers, wholesalers and private buyers around the world realize this great opportunity.

Reason #1: Wide product range

Due to the very competitive domestic Japanese car market, there are an abundance of models and manufacturers in Japan manufacturers including Toyota, Nissan, Honda, Mazda, Mitsubishi, Fuji Heavy Industries (Subaru), Suzuki and Daihatsu.

Reason #2: K-class Mini Cars

This is a new type of car which has been created in Japan to address Environmental concerns, demand for fuel efficiency and the general the lack of space on Japanese roads. All K-class vehicles meet a specification which restricts the weight, engine displacement (maximum of 660cc) and exterior dimensions. K cars have excellent cost performance are in growing demand around the world.

Reason #3: Excellent Japanese road conditions

Despite the lack of space, Japanese roads are extremely well maintained meaning normal wear and tear which might be attributed to poor road conditions in other countries is not a problem in Japan.

Reason #4: Average vehicle age

The average age of all vehicles on Japanese roads is almost sure to be lower than most other countries. It is unusual to see cars older than 15 years on the roads at all. The Japan Automotive Manufacturers Association (JAMA) reports average vehicle age to be approximately 5.8 years.

Reason #5: Higher model specifications

Due to an abundance of models from each manufacturer and the Japanese penchant for new electronic and other gadgetry, the specifications of a Japanese vehicle produced for the domestic market will usually be much higher than foreign-produced equivalents. This means you can buy a Japanese export model with all the features you like for the same price as a base model bought domestically.

Reason #6: Low mileage

Most Japanese live in cities which lack space and are very dense in terms of population. Since everything necessary to live a comfortable life is within close reach for the typical Japanese, domestic drivers average mileage is typically less than half that of other countries. The Japanese Motor Vehicle Inspection Registration Association reports average mileage for Japanese domestic drivers to be around 9,000km annually. American drivers, on the other hand, drive and average of 19,000 kms each year.

Reason #7: Relative cost

Even after taking into account costs such as freight and local compliance it is almost always cheaper to import a used car from Japan than to buy an equivalent used car locally. There are several reasons for Japanese exports being so cheap, primary amongst them is the mandatory Japanese vehicle safety inspections which effectively increase the cost of ownership as the vehicle ages.

Reason #8: Excellent resale value

Japanese cars, particularly Toyota and Lexus, generally hold much more of their value over the lifetime of the product than foreign counterparts such as Ford and GM.

Reason #9: Highly efficient automated auction systems

Instead of purchasing from private sellers or through local used car dealers whose reputation and business practices may be circumspect, used Japanese cars may be purchased at wholesale prices through very efficient auction houses run by Toyota, Nissan and other reputable companies. Each vehicle placed into an auction is photographed, inspected and graded and this information is useful, accurate and available to potential buyers.

Reason #10: No need to deal with sleazy local used car salesmen

It is an unfortunate fact that the used car industry around the world has the reputation of being filled with unsavory types who deceive and lie in order to gouge their customers on every deal. Whether this is true or not, buying a Japanese export car removes the need to deal with these individuals at all.

Reason #11: Japanese cultural habit of always buying new

Typical Japanese drivers are loathe to buy a car that someone else has used, regardless of the value proposition inherent in doing so. Thus Japanese customarily purchase new cars every 5-7 years, creating a pool of high quality, low mileage, high-spec used cars ready for resale around the world.

Reason #12: No need to waste time and money with private sellers

It is well know that buying a used car from a private seller is sometimes a good way to find a bargain, but this kind of purchase may be quite risky for a buyer who is not mechanically inclined. It can also be very time consuming dealing with private sellers, trying to schedule meetings and test drives and traveling around town to inspect vehicles which are often not as advertised. .

Reason #13: Abundance of Japan-based used car exporters and specialists

Since Japan represents the second largest vehicle manufacturing country in the world and the number of exports from Japan are growing every year there are many exporters and specialists who can assist you in sourcing and exporting your car. Due to the number of people vying for your business you can choose an exporter that you like and gain very competitive pricing as well.

Reason #14: Japanese safety regulations

The Japanese roadworthy testing system is a positive for two reasons: (1) All Japanese vehicles are subjected to exhaustive bi-annual testing and mechanical checks to ensure they are well maintained and (2) gaining roadworthy (called Shaken in Japan) usually costs a lot, artificially inflating the ongoing running costs year by year as the car gets older. The latter is one of the primary reasons Japanese drivers trade up to a new car so quickly and so often.

Reason #15: Increasing shipping capacity and shipment options

Many vehicle transportation companies are increasing their capacity to freight both new and used vehicles from Japan due to growth in this market. For individuals wishing to purchase 2-4 cars at a time shipment by container is also an option which may be faster, more secure and possibly cheaper depending upon the destination port.

Reason #16: Availability of objective information

On the internet today there are many automotive review sites dedicated to the provision of accurate, timely and objective data for all types of Japanese cars. It is no longer necessary for individual buyers to rely on salespeople or manufacturer marketing literature to gain an accurate understanding of specifications, prices and vehicle conditions prior to purchase.

Reason #17: Auction assessments and evaluations

Every auto auction house in Japan performs mechanical tests and assessments by trained technicians prior to entry of the vehicle at auction. These evaluations are very detailed and accurate and include all pertinent information along with grading for the exterior and interior of the vehicle.

Reason #18: Flexible payment terms

While most exporters prefer to be paid via telegraphic transfer, credit card/paypal payments and payments via letter of credit are becoming more common. Most exporters are open to alternative payment methods and the foreign buyer may also consider escrow services if hesitant about sending large sums of money abroad for the first time.

Reason #19: No need to speak Japanese

Due to the huge market which has developed in used Japanese car exports there are many people from many different nations involved in this business. Buyers from Pakistan can communicate with exporters in Urdu. Buyers from Russia can speak in local dialects with Japanese exporters in Northern states, where Russian speakers are common. Almost every Japan-based exporter speaks English too. You do not need to worry about communication problems.

Reason #20: Availability of parts

While Japanese domestic models are usually higher spec than their foreign-manufactured equivalents the fact that so many Japanese manufacturing plants exist around the world mean that common parts for popular vehicles are likely to be available cheaply in local markets. In the event that a part is not available domestically, there are many parts specialists who can help in locating a required part.

Reason #21: Trucks, buses ands machinery also available

While used cars are currently the most popular automotive export, sourcing of buses, trucks and machinery is also becoming more common. Japanese trucks are mostly purpose-built, while those manufactured in other countries are not. Thus it is possible to obtain the perfect truck for the job at hand by exporting it from Japan. Once again, the quality and value of these items exceeds what could normally be attained locally.

Conclusion

Buying a new or used car from Japan is a great way to get your dream car and save money doing it. Although it may not be the quickest way to buy, more and more satsifed buyers are taking advantage of this great opportunity. Since the purchase of a car is usually a major decision and an expensive proposition, exporting your next car from Japan is definately worthy of consideration.

Prices of Cars in Japanese Auctions

Prices of Cars in Japanese Auctions

Generally it is thought that car prices constantly go down. Many think that once a car is bought cheaply, it can always be bought at that price. On the contrary, as in other markets, prices go both up and down. The price fluctuation trends can be summarized as follows.

End of March Period Prices fall in this period.

There are mainly two reasons for this price fall.

1) For a lot of companies this is the end of the accounting year and they need to sell some of the cars to pay taxes and other accounting purposes.

2) The cars bought for display aimed at university students that weren't sold are put back on the market.
The university year starts in April and sales for students go down then.

Mid May Prices start increasing.
Excess stock has now been sold off through the auctions, prices come back up to previous levels.

Late October to December Prices fall in this period.

The most expensive time of the year in Japan for a company is the end of the year.

Bonuses, year end parties require companies to sell off stock to get good cash position. This is specially observed at the end of December.

Other Factors

Other factors can cause a price of a certain type of vehicle to drop without apparent reason and unrelated to the periodic price fluctuations.

The drop in the Irish and English currency in 1998 caused Pajero prices to nose-dive for the first time in 2 years for example.

posted by Global Car Japan - Exporter of Japanese Used Cars at 6:58 AM

How to Buy and Import a Used Car from Japan

How to Buy and Import a Used Car from Japan
By Keith Taynton

Japan has been a rich source of used cars for many years and each day thousands of people buy a used car direct from Japanese car auctions.

The benefits are many:

Good quality, reliable, economical and famous Japanese brands such as Toyota, Honda, Nissan and Mitsubishi as well as, European cars like the Mercedes Benz and BMW.
Low milage. Most cars come with less than 100,000 kilometers on the clock
Good condition. Regular servicing and repairs due to strict Japanese Government safety checks.
Many options.

Many owners choose several options, so your car will come feature packed.
Cheap! Cars can start at auction for 1 yen, although you'll probably pay a little more than that!
And more...

In this article I'll cover the following points to help you understand the Japanese used car market and make a more informed choice about buying a car for export to your country.

Japanese used car dealers

The buying and importing process

Japanese used car dealers

The process of buying and importing a used car has become much easier with the advent of the internet. There are thousands of dealers throughout Japan and around the world who have websites offering cars they have in stock, or offering a custom car search service where they take your specifications and search the auctions until they find a car to match your exact needs.

There is a wide variety of export car dealers. Some dealers are huge organisations dealing with large volumes of cars while others are single entrepreneurs who run their own businesses. Of course the larger a company the bigger the overheads and so probably you'll end up paying slightly more in dealer fees, but you get more security from dealing with an established business. The choice between price and reliability is yours.

The Japanese Government recognised JUMVEA (Japanese Used Motor Vehicle Exporters Assosciation) maintains a member list of companies which "was created to address this problem [of poor quality cars and dealers], being composed of used car exporters of excellent credentials and high credibility" JUMVEA website.

Their aim is to give membership to those companies which show their reliability and service over time, so if you are particularly worried about trust then look for a company with this accreditation. You can check the list of members on the JUMVEA website, and accredited members will proudly display their membership on their website.
However not many companies have JUMVEA membership so before buying from a non member do the following checks:

See if the exporters bank details are listed on the website.
Call the company at least once to ask about any questions you may have.

Bona fide companies will have no problems with talking to you over the phone, although be patient with their English abilty!

Ask for testimonials
Check the quality of response to your enquiries. If the dealer is obscuring or dodging an issue then move on.

In general use your common sense and if something is suspicious or dosent feel right then don't proceed and find another dealer.

The buying and importing process

Check your country's law

Before importing check your country's rules for importing used cars to make sure you are allowed to import the car you want. Most countries have liberal laws and are mostly concerned with emissions and safety standards.

However these can add extra to the cost of importing so make sure you research the compatibility of the model you want with laws in your own country. If you choose a car which is way outside the limits then you could be spending a large amount to make it conform.
Check with the dealer and your local department of motor vehicles if in doubt. You don't want to be left on the docks with a bill for several thousand to make the car conform before you can take it home!

Sending the request

If the dealer has a stock of cars you can request on shown on their website in which case you will know the price and details of the car.
However if you are looking for something specific then you will have to send the dealer an email describing what you want. Most dealers have some sort of request form on their website.

Confirmation

If you are buying from stock then you will usually get a faster confirmation of purchase. If you request something else then the dealer will have to search for what you requested at an auction and send you details of prices and specifications. It is then up to you to confirm or ask for a different model etc.

Payment

Once you have decided on a car and price you will be required to pay for it. Methods and amounts vary by dealer.

Some dealers require you pay 100% upfront with by bank transfer (or telegraphic transfer T.T.) before the car is bought at auction or readied for shipping. Others require a less amount as a deposit and then a balance on completion of purchase at auction or when the car is ready for shipping.

You may feel nervous sending money to a foreign country and unknown company so you should be sure of the dealers trustworthiness before you enter into a contract or send any money. You can do this by checking to see if the dealer displays a company registration number and address on their website, then ask the Japanese embassy in your country for confirmation - although this may take a long time and cost you extra.

You can also check the bank account. Japanese banking laws are strict when it comes to monetary movements and bank accounts. All registered businesses are required to have their accounts under exactly the same name that they registered their company.

If you are buying a used car online from Japan and the name on the bank account is different from the name of the trading company, or if its an individual, then you should investigate more.

Delivery

Delivery times will vary according to distance and number of ships to your country. Here is a rough guideline.
Russia and Hong Kong: three days New Zealand and Australia: three weeks Rest of world (Canada) :

There may be other times to include in the delivery period such as a deregisteration certificate for the Japanese owner which shows the car has been sold by him, and finding a space on a boat to your port. These extra processes can take up another four to six weeks.

Arrival

Your car has arrived at your port and now you have to pick it up. Take the documentation which the dealer sent you to a shipping agent who will arrange the offloading of the car from the ship.

Depending on your country's laws you may have to pay import tax, licence the car, get car safety tests done, and insure the car.

Now your car is legally imported and in your hands. Drive home carefully!

Summary

In conclusion buying and exporting a used Japanese car is fairly straightforward, and can save you a fair bit of money compared to buying a car in your own country. Choosing a reputable firm is probably the biggest priority to ensure a smooth transaction, and you should be aware of any extra costs your government may impose to make the car conform to safety and emission standards.

For more information please visit the Japanese used car exporter portal http://www.used-car-japan.com/. Includes detailed information, dealer directory and car reviews.