Cultural and economic differences create business opportunities

Direct & private imports of pre-owned Japanese cars have been going on for quite some time. However, they only became accessible to the general public a few years ago, mainly with the internet revolution.

Import procedures vary from one country to the other, but in most instances, prove easier than they might seem at first. New rules are implemented and older ones become obsolete, by keeping informed and insuring everything work out to the best, a direct import should result in 30 to 50% savings off local prices for equivalent models.

Most people are now aware of the basic facts about Japanese used cars:

Japanese cars made for the demanding domestic market are always designed to higher specifications than export versions. While in Japan, they were well looked after and driven at restricted speed on excellent roads.

Nevertheless, due to Japan's unique social & economic constraints, used vehicles depreciate faster here than anywhere else and can be purchased at amazingly low prices.

Scarce land, crowded cities & short vacations

Superb automobiles, beautiful countryside and unfortunately, congested urban areas, overpriced toll roads and tight holiday schedules take most of the fun out of long distance car travel. This explains why most Japanese used vehicles usually come with low mileages.

An efficient rail and subway transportation system is always favored for daily commuting, and the SHINKANSEN (bullet train) takes care of more serious traveling needs.

Consequently, having been through less use & abuse, the overall condition for cars of similar age will be considerably better in Japan than in most other countries.

Tuned-up performance units & SUV of tremendous capabilities are never used to their potential and routinely spend an entire life in extended neighborhood use and proudly displayed on courtyards.

Brand new is good, but used is not...

Japan is slowly evolving but there still is a stigma attached to using or acquiring anything "used". Originating from ancient religious beliefs, this attitude still affects all commodities, from home appliances, and automobiles, jewelry or houses.

Despite the current economic slowdown and a newly acquired Japanese taste for bargains, the large majority of vehicles is still acquired new from a dealer, by trading in the current one (usually at shaken renewal time, after 3, 5, 7 & 9 years).

Private car sales are non existent in Japan, because technically impossible.

From one owner to the next, the vehicle MUST pass through the hands of an authorized dealer for ownership transfer. Due to cut-throat competition and low new car prices, dealers in Japan often make better income handling paperwork than by marking up car prices.
NOTE: Updated Service records & Log Books which are important in Europe where cars routinely change hands privately, are usually not available with Japanese imports, as few people in Japan bother writing in them nor have use for them. Proper maintenance is typically handled by the original dealer. Since this dealer is going to eventually inherit the car at trade in time, he is obviously interested in maintenance being done at regular intervals.

WARNING: Exporters who promise updated service records with used Japanese cars are mostly frauds!
Trade-in value for used cars is determined by factors others than actual condition, or potential market value. The new car salesman offers a price ridiculously low by non Japanese standards (mostly a rebate on the next car), before selling the vehicle via the auction houses.
Recent, luxury or high performing vehicles which had very little chance to be enjoyed to their capacities on Japanese roads are the most recommended for export. Early depreciation is intense as cars commonly lose 50% or more of their original value within the first 3 years.

Strictly enforced speed limits of 30km/h in urban areas, 50km/h on highways and 80 to 100km/h on toll roads, help produce a pool of low mileage vehicles. Vandalism & car theft being virtually unknown in Japan, alarm systems are extremely rare on Japanese cars.

On the other hand, features such as power steering, windows & mirrors, climate control, car stereo, ABS and air bags are increasingly considered standard equipment.

Produce, consume & pay taxes...

Fierce competition and introduction of new models every four years, results in strong incentives to new car buyers. Anyone with an ID, a job and a guarantor can drive a brand new car out of a showroom with zero down payment (6 to 7% interest on full loan is the norm).

In other words, purchasing a new car in Japan is relatively cheap, while owning it, is not.
For instance:
- Annual road tax ranges from yen 40,000 for ordinary cars, up to yen 70,000 or more for luxury units.
- Shaken renewal starts at yen 120,000 for basic models, up to twice this figure for top grade units (required every 2 years, after the first original 3 years)
- Mandatory Parking monthly fees amount to yen 10,000 to 30,000 depending on area (parking within a few hundred meter from residence is required prior to purchase of a car, police comes to verify size and location).
- Insurance premiums (other than basic comprised in shaken) amount to at least yen 10,000 per month.
- General maintenance is traditionally never undertaken by the owner himself, but by the dealer at high price (services, labor, rent & advertising are very costly in Japan)

However, the main factor behind fast shrinking car value and early replacement, is the Shaken, a costly combination of taxes and mandatory roadworthy tests, added to the price of all cars "on the road". Renewal is mandatory at 3, 5, 7 & 9 years from first registration.

Besides providing huge income for the government, it insures every motor vehicle on Japanese road is safe and sound. Shaken price is identical at each renewal and with time, will eventually amount to more than the value of the car itself.

This factor explains why only an eccentric person would consider keeping any car longer than five or seven years, regardless of its objective condition.
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