What is Japanese Used car Auction?
According to a study by the UN Environment, nearly 96% of imported cars in the world are used cars. These cars are usually obtained by auction from Japanese auction sites. They usually provide affordable cars in pristine conditions hence their popularity. If they have any defects, this is indicated in the auction sheet which we’ll discuss in detail. Additionally, Japanese auction sites have a wide selection of cars and you’re likely to find exactly what you’re looking for from these sites. Therefore, it’s advantageous to familiarize yourself with the auction process.
The first step when importing a car from Japan is to find the car in the numerous Japanese auction sites. there are over 30 reputable auction groups, 200 auction locations and over 50,000 cars lined up every day. It’s important to buy from a well-known auction location as you’re guaranteed high-quality services and cars.
Auctions are usually held on working hours from Monday to Saturday with exceptions of national holidays. As mentioned, there’s a huge pool of vehicles in the Japanese market. Therefore, to hasten the process of finding the right car, it’s advisable to select an auction consultant who’ll help with the auction process. The consultant will help identify a car that’s suitable for you.
Every vehicle has an auction sheet after inspection by the auction house. It’s important to go through the auction sheet thoroughly as it provides the condition of the vehicle. Additionally, the auction house is not liable for any defects stated in the auction sheet.
The auction sheet includes a detailed outline of the car such as;
- Vehicle Grade
- Year of First Registration
- Engine Capacity (CC)
- Fuel Type
- Seating Capacity
- Chassis Number
It also includes the necessary information to determine whether the car is purchasable like scratches, dents, changed parts, rust and paint chips. Some damages are repairable hence shouldn’t be a deal-breaker. However, in some cases, the damage may be more than what the buyer is willing to handle. In this case, you can look through the auction site for another car.
Once you find a car that meets your requirements, you have to make a deposit so as to bid on the car. The deposit is done through a wire transfer. If you win the bid, then you have to send the balance and consultant fees if any. If the bid wasn’t successful, the deposit amount will be refunded or allocated to another vehicle depending on your preference.
The next day after purchase you will find proforma invoice. In the proforma invoice you will see how much you need to pay for car’s delivery to your port of destination (please consult with your personal sales consultant about the costs before you bid on any car).
You can also see all the process and documents flow for your car from auction house to your destination port, including date of arrival to Japan’s port of departure, additional car photos from port’s yard, date of export certificate issuance, expected date of ship’s departure, name of the ship and shipping line, expected date of arrival to your port, date of original Bill of Lading issuance, FED Ex tracking code for original documents.
Also, you will be able to see and download photocopies of all documents uploaded as PDF files.
HOW TO BUY FROM AUCTION:
REGISTRATION – Please make a simple registration in our system. It is FREE and will allow you to see your deposits, auctions, and payment Status.
CHOOSE/BID – In order to be able to start bidding and purchasing cars right away, you are required to make a deposit. With deposit in your account, you get a VIP status and can see all cars coming up in the auctions. Most auction cars are only visible to VIP accounts only. The deposit amount is as per the following table.
|Car price||Deposit for car price||Other condition|
|~1 million yen||100,000 JPY||Consult with your account manager.
The rest of payment should be paid within a week.
|1 ~ 3 million yen||20%|
|3 ~ 5 million yen||30%|
|5 ~ 8 million yen||70%|
|8 ~ 10 million yen||75%|
|10 ~ million yen||80%|
This deposit will be added to your account and when we send you the final invoice. You can make your deposit via:
Bank Transfer (Telegraphic transfer/ Wire Transfer)
Please make your bank transfer using details below. Please note that it takes 2 – 3 days to confirm your transaction
*Customer pays transaction fee cost.
MAKE FULL PAYMENT – Upon successful purchase of the car you bid on, we will issue an invoice asking for the full payment. Please pay using one of the above-mentioned banking Details which is most suitable for you. Note: (50% and 70% Payment Plans available for Dealers).
SHIPPING – After we confirm your full payment being received, we will dispatch all the required documents to receive the car via expedited courier services (DMS, DHL, FedEx, UPS)
RECIEVE YOUR VEHICLE – You are now ready to pick your car at your destination port. Please make sure you bring all the required documents.
Kindly Acknowledge the Table Below:
In the Table mentioned below you can see the charges according to the buying of the Vehicles to make it in FOB (Freight on Board).
For CNF or CIF Prices Kindly concern with your account manager for the Freight Charges up to your Destination Port.
If you would like to make a FOB Deal in Container Shipment the Loading Charges of the 40ft Container is $1,200 USD either you put 2 Cars or 6 Cars which is separate from FOB Price.
|COSTS TO IMPORT A CAR|
|Dealers please get in touch for special Dealer Rates|
|Auction Buying (JPY)||Charges (JPY)||Formula of Total FOB in USD|
|0-150,000||92000||Auction Buying + Operating Charges = Total FOB in Japanese Yen/Fixed Conversion rate 105 = Total FOB Price in USD
FOR Example: Auction Buying (90,000) + Operating Charges (92,000) = Total FOB in Japanese Yen (182,000 YEN) / Fixed Conversion Rate 105 (182,000/105) = Total FOB Price in USD ($1,733.33) USD FOB
|Negotiation fee||15,000 JPY would be the Negotiation fee if the Vehicle Sold by Negotiation to win it for you|
|Cancellation of the bid||after you won the car 80,000 JPY would be the penalty if you cancel the won car (you can cancel a bid for car before 4,5 hours before you win it) .. Not applicable for tender auctions and for car won through negotiation|
|Resell at the auction||90,000 JPY penalty including costs incurred due to resell (auction fees, inland transport, etc.)|
|*Lowered down cars||Some vehicle such as Sport cars sometimes have low height, depending on the height of suspensions, there might be extra fee included in FOB due to Self-Drive Inland arrangement|
|None-Drivable cars (None-Claim section cars)
FOB Deal in RORO Shipment (Freight Collect)
|Ask to sales person
$250 USD is the Extra Inland Transportation Charges on Total FOB Price for RORO Shipment.
|Whole-sale vehicles (Stock cars from Dealers)||Extra 25,000JPY for inland fee|
|Trucks and Over-size vehicles||Extra 50,000JPY on top of FOB charge due to higher inland transportation fee and port clearance fee|
**on the Buying of more than 1,500,000 YEN Kindly ask Total FOB Price from your Account Manager**