JDM DIRECT: Japanese Car Dealers for Auctions & Global Export

Japanese Car Dealers are an important and necessary factor in accesing the Japan Used Car Auctions

Current studies made on the car industry development trend for Japan has been demonstrating a rising demand for new and pre-owned vehicles from the island nation; as well as a robust growth via the marked increase in numbers of used cars sold at the Japanese Auction Houses.

Japan is still among the world’s top 10 automobile manufacturers. In May of 2015, the Japanese produced over 645 thousand units of cars^[1]of which 289 thousand units were exported to all over the world.

As for used vehicles, 1,283,390 units were exported from Japan[2] which accounts[3] for 8.3% of the total vehicles sold in Europe for the year 2014.

[1] JAMA statistics. May 2015

[2] JUMVEA statistics

[3]http://www.theicct.org/sites/default/files/publications/EU_pocketbook_2014.pdf

By the end of the last year, the number of motor vehicles in use domestically in Japan reached 77 million units; as the service life of passenger cars averaged at 12.64 years. The number of used motor vehicles sold at the same time reached 6.8 million units.

There is a very good saying in Russian about the sale and purchase of vehicles: while owning a vehicle, you can be happy twice; once when you purchase a car and twice when you sell it.  Simply said, the underlying message is that the sale of a used vehicle may often rather than not present a challenge.

The purchase or sale of any vehicle requires dedication, time and energy.  Unlike buying a brand new vehicle, sales of pre-owned cars are more demanding.  One may think that the purchase of a pre-owned vehicle from Japan is not that difficult; that anybody can waltz in an Auction House, choose and pick the dream car and voila, finished.  In reality, it takes an organized mind, specific knowledge on the workings of the Japanese Car Auctions, nerves and resolve, money and planning on the purchase of a used car; not failing to mention that these Auction Houses only allow people with membership to participate.  To make it more accessible to the international market, dealing with Japanese Car Dealers provides the access needed to facilitate the buy; and if meant for export, the processing involved prior to shipment.

How difficult is to become an Authorized Japanese Car Dealer? All potential Japanese Car Dealers must meet the following requirements:

• Three years of proven business operations
• Positive tax compliance history
• Five-year contract on use of online auction access satellite bidding system
• Membership Contracts with each Auction House on transactions (there are over 100 Auction Houses in Japan)
• Payment of 55,000,000 Yen (approximately 475,000 USD) fee for above mentioned contract (this is a serious barrier for newly established business entities, specifically small companies attempting to enter the market).
• Contracts with several large Auction Houses on delivery of vehicles bought from these Auction Houses to company-designated yard/parking
• A lot of administration work, an accounting system in place , procedures and rules to guide and ensure business policy in regards to services used with the Auctions
• Experience in processing somewhat complicated paper work involving de-registration of vehicles, submission/surrender of car license plates and issuance of export certificates, etc.

New companies entering the world of pre-owned vehicle sales should at the very least have the following to ‘survive’ and be financially sustainable:

• Land area of sufficient size to locate the business.  In recent years, the predicted issues that Japan would encounter from the country’s scarcity of land has been more and more apparent by the population increasing in house/lot purchases and new businesses being established
• Several car parking/storage areas to place vehicles before shipping
• Infrastructure and repair shops with appropriate equipment and machinery for post-auction maintenance, minor repairs and, pre-shipping preparation of cars
• Educated, experienced and skillful personnel with very good proficiency of potential export countries’ languages and good command of Nihonggo (Japanese Language)
• A well established and dedicated accounting and tax staff to follow and comply with the Japanese business practices and standards
• A more than a dozen licenses, permits, attestment for specific work and services  (i.e. dismantling, Freon collection and disposal etc.), documentation and certificates

Japan Partner Inc. has been among the top Car Export Companies in Japan for the better part of nearly two decades.  The company has been efficiently utilizing its invested capital in the Car sales business the best way possible, with the continuous goal of optimizing services offered to prospective clients while providing excellent overall customer experience.  Annual sales account for around 1 billion Yen, covering both domestic and foreign transactions. Given the fact that the world market changes every year, Japan Partner makes a point to diversify its resources to operate better and serve more customers.

There are several options regarding possible purchases of used cars in Japan, although for exports it is recommended to purchase cars from the Japanese Car Auctions with the help of an official and registered car dealer as Japan Partner:

• Purchase from end user (direct from previous vehicle owner)
• Trading used car for a new one with an extra fee
• Purchase from a Local Japanese dealer
• Purchase of cars from the Japanese Car Auctions (authorized Japanese dealers only)

As for the cars for export to other countries, only authorized Japanese Car Dealers can make it quick and easily possible.  Japan Partner has served over 370 thousand customers from all over the world; an international client base nurtured and maintained throughout the years in operation.  We are proud of the fact that some of our customers have built their businesses thanks to our company’s services and shipments made to their countries.

Based on our 13 years of successful business, Japan Partner Inc. would like to provide the following highlighted points (written on an auction sheet) that make the prices up for the cars auctioned:

• auction debut (first time seller)
• no accident history
• low mileage
• one owner
• interior condition A or B ( both for domestic and foreign markets)
• non-smoking car
• color (pearl color is the most expensive)
• service book and regular service history
• navigation (for domestic market)
• long lasting valid Shaken (for domestic market)
• preferences given to the cars from Kansai area (less rust, better condition due to almost no snow fall and icy roads during the winter season)

If you are interested in purchasing any vehicle from the Japan Used Car Auctions, please check out our website or get in touch with us via email at info@japan-partner.com or call at (+81)567-94-0015.  Cheers!