By: Ninkipal Co.,Ltd – Japanese Car Exporter
Japan Used Cars Auction is a method of selling used cars and other vehicles based on auction bidding system. Used Car Auctions are found in many countries but are not common among the masses, since in many counties like USA auctions are protected source for the car dealers but in countries like Japan, car auctions are very popular among the people who may buy their vehicle indirectly from these auctions.
Japan car industry is one of the largest and most recognized in the world, with over millions of cars produced and exported almost every year. Used cars from Japan are of reputed manufacturer such as Toyota, Honda, Mazda, Mitsubishi, Nissan, Subaru, Suzuki and Daihatsu.
The Japan Used Cars Auction system provides high quality Japanese second-hand cars at cheap prices, as these will avoid the additional costs added by car dealers. In Japanese law, only dealers may become members of used cars auctions and are permitted to attend and bid on cars and vehicles, people are not allowed to take part in auto auctions directly. The system is set up in such a way that it allows people to have access to the information, but to keep the auctions in order only professionals are allowed to bid.
In Japan there are over 50 well known auto auction groups and over 210 auto auction locations. There are more than 60,000 cars lined up for the Auction everyday, and the Auctions are held from Monday to Saturday in Japan. Japan Used Car Exporters who are the members of Japanese auto auctions use these auctions as their primary source of used vehicles. Other than the exporters, most members are used vehicle dealers that sell vehicles in Japan to Japanese people.
To know the vehicle details and the actual condition is the main topic of concern. It is important to examine all details of the vehicle, as vehicles at Japanese used car auctions are sold “as is”. The auction inspection sheet play a vital role in this regard and allows buyers and inspectors to evaluate the worth of a vehicle. Every vehicle in an auction will have an inspection sheet, completed after an inspection by the Japanese car auction house, independent of the seller. The Inspection sheet provides 99.9% accuracy in determining the condition of the vehicle.
One of the advantages of purchasing vehicle from a Japanese auto auctions is saving money, as auctions may result in lower selling prices than normal and provide a great car at a bargain price. Customers or Japan Used Car Importer should decide a maximum price that they are willing to pay for the vehicle in the auction, it is important because customers are represented at the Japanese car auction house by dealers who should know the maximum bid they can place on customer's behalf.
Prices in Japan used car auctions are often based on how many comparable vehicles had been sold for in recent months. Because of the large number of used cars that are sold at auction, this pricing data is usually very accurate and can give a good idea of how much customers should for a Japanese second-hand cars.
Customers also need to arrange the amount before the auction in the account of their dealer who will be making the bid on their behalf. This amount is refundable or the dealer may ask for some another vehicle in the same range as per customer's interest.
There are both benefits and drawbacks associated with buying a vehicle from Auto auctions.
Some of salient benefits of auctioned Japanese used cars are:
1. Low Price – In Japan the car prices in auto auctions are low because owning used cars is expensive in Japan. This causes used cars to be sold early and cheap because the longer one keeps a car in Japan, the more it will cost.
2. Efficient Sales System – Reselling cars has become a well developed system in Japan.
3. Safety – All those involved in used cars auction and export process are accountable and the market in Japan overall is trustworthy.
4. High Supply – Around 150,000 cars are offered weekly for bidding.
5. High Standards – Vehicles in Japan are maintained very well and used lightly and independent reviews of a car's condition is a perquisite of selling it in auction.
6. More Equipment – Japanese vehicles contain what in most countries consider “extras”, for example, navigation systems and alloy wheels.
With the above advantages there are some drawbacks as well that are associated with Auto auctions such as:
1. The vehicle bought from auctions could have unknown problems.
2. There are no warranties on the vehicles bought from auctions. All cars, trucks, buses etc. are sold without any warranty.
3. The buyer's purchase fees (fees added to your bidding price) raise the purchase price. Customers do not pay these fees when buying from a private seller.
4. Test drive is not available for the vehicles in the auctions. Customers may drive after they have made the purchase, prior to the purchase they have to just make an educated decision whether or not to buy a particular vehicle.
5. The resale value of an auction history car is typically less than what you would pay for a private car.
Despite of the drawbacks stated above the demand and reputation of the auction vehicles is continuously on an increase, this is solely due to the good condition of the vehicles and the trust & worthiness which has been developed over the time by the Auction houses among the people across the globe.