Introduction
There are 3 ways of getting a used Japanese car; from the domestic retail market, the wholesale market, and finally through Auto auctions. Of the three, the auto auction process is perhaps the best, and below is a pros and cons list to show you just why
Pros.
- Cheapest prices are found at the auto auctions.
- The highest variety of vehicles can also be found through auto auctions.
- The used cars are thoroughly inspected before being sold.
Cons
- You’ll not get limited edition special cars through the auto auctions.
But a few things to note before going through the process of clearing a used Japanese car through the auction process.
- Only registered dealers and buyers within Japan can take part in the auto auction process.
- The inspection report and condition grade of the used cars are provided by the auction houses independent of the dealers.
- Unlike other auction places, bidding is done through computer terminals owned by the bidding companies. This facilitates both bidders who are bidding online and those on site.
Auto Auction Process
- The first thing is to ensure you are registered with a certified Japanese auto dealer, who will bid in the auction process on your behalf. (Access to Japanese Auto Auctions)
- Select the particular vehicle you would like to purchase on the auction website.
- Pay a mandatory fixed security deposit which is required to activate the bidding account, and start the bidding process.
The security deposit will amount to USD 2,000 for cars less than 1,000,000 JPY (Japanese yen) bid price. If the bid price is more than 1,000,000 JPY, the fixed deposit varies from lot to lot.
- Place the minimum bid for the particular unit, and the bidding process will begin.
- You will receive the results of your bid. If successful an invoice that contains all the relevant information about the vehicle will be sent to you. This will contain the total cost of the vehicle (bidding price plus the auction commission), shipment address, name, and vehicle information.
Note that, depending on the auction system, the final price from a successful auction might be up 20,000 JPY or higher.
- Payment of the first instalment to the Japanese auto dealer for the vehicle. This is to begin the shipping process.
- The vehicle is shipped once the payment has been received. A final payment instalment will be required before the vehicle lands at the port of destination. The vehicle documents will follow once the shipment is complete and all due balances have been cleared.
- Shipping is complete and the vehicle is at your port of preference, here you’re required to submit the original documents of your vehicle to the customs agency to enable clearance and registration.
Conclusion
Going through the Auto auctions process is by far the easiest method of getting a used Japanese cars.
A good local agent or auto dealer will make the process even more seamless.
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FAQS
- Why do I need to send a deposit amount to the auction site?
This is to ensure that only serious bidders are on the site and to prevent last-minute cancellations and spam bidders.
- What happens to the fixed amount of deposit sent to the auction site?
The security deposit is refundable in full in case of an unsuccessful bid. But with your permission, it can also be used as the security deposit for any future bids for another vehicle.
Also, the fixed deposit amount can be used in the payment of the vehicle unit and will be deducted from what you’ll be required to pay.
- Why are there few photos of the car on the auction site?
Auction houses only display about 2 to 3 photos, but if the bid is successful more photos will be available for review.
- Can you trust the quality of the vehicle when bidding on it unseen?
All auction houses in Japan are committed to the highest professional standards. Thus, they provide inspection reports that are as accurate as possible. The auction houses have also adopted a common vehicle assessment grading scheme to ensure trust across the markets.
Also, some auto dealers take it upon themselves to visit the auction site and request for physical inspection of the chosen unit prior to the bidding process.