Japan Used Cars Auction
Moscow's Economy leddering via Japan Used Car Auciton
In Japan used cars auction and export turned into a global presence. Now used car from Japan are exported to more than 180 countries from Suriname to Uganda and Bangladesh, boasting of used cars’ performance and long lasting durability.
The booming business in Russia came to a screaming halt in year 2008, when the global economic crises begin to strike the industry tough and Moscow increased the custom duties on imported vehicles.
Before this, hundreds of thousands of used Japanese cars had been exported each year to Russia. But Vladimir Putin the Prime Minister of Russia restricted the influx of import from Japan in order to protect the domestic auto industry of Russia which had been badly hurt by the economic fallout.
From Japan used cars auction and export for Russian dealers fell around 90% from 563,369 in 2008 to 53,180 in year 2009. In year 2008 cars exported and bought through used car auction in Japan to Russia were 42%.
This plunge treated with overwhelming blow to many traders, some of which went under, claimed by Yutaska Shiota, the Executive director at Japan Used Motor Vehicle Exporters Association (JUMVEA). Some of the Japanese used cars concerned blamed close ties between Russian political leaders and major corporations.
In Japan used cars auction have been supplying vehicles to different countries through export for the past 30 years. When the state’s deregulation of trade in 1995 relaxed their export, the figures of used cars exports tripled, going beyond 1.3 million in 2007 from 429,331 in year 1997.
This number plummeted about 50% to 675,858 in year 2009 due to the recession and Moscow’s customs hike.
On the other hand, export to Africa has sustained to grow. The countries in Africa imported 79,084 used cars from Japan in the year 2004 and the figures were expected to rise to about 190,000 in year 2010. South Africa and Kenya were the major markets, but also UAE, Chile and New Zealand had the major contribution.
Prices in Japan Used Cars Auction
The prices in Japan used cars auction vary, an official at JTM Used Car Export in Yokohama reported, with the most popular models fetching between 300,000 and 400,000 Yen or equivalent of $3,590 to $4,790. Masami Kato at Arai Shoji Co. Ltd, which operates used car auctions in 4 locations in Japan, said, not only used passenger cars but also used trucks, buses and bulldozers come under the hammer still to pay high demand in developing countries.
Masami also said that “some export-bound used cars still fetch a higher price at an auction than in the domestic market.” But extended slumps in new car sales in Japan made it hard enough for traders to line up quality used cars, according to JUMVEA.
Moreover, in tough economic situations like this, there has been a sharp increase in illegal activities like the export of stolen vehicles or illegally rebuilt or remodeled vehicles. According to Shiota, “That could hurt the image and reputation of Japanese cars.” Some fake dealers in Japan at used cars auction even disappeared with 50 to 100 vehicles without paying a single cent.