Used Car Trade in Japan- Requirements that must be met by a Japanese Used Car Traders

Used Car Trade in Japan- Requirements that must be met by a Japanese Used Car Traders

Japanese Used Car Traders

Japan is attributed for the manufacturing of various kinds of vehicles like Nissan, Mitsubishi, Subaru, Toyota, Honda, and Suzuki. Now Japan stands on top of all auto manufacturers in the world. In Japan Used car traders as well as new car dealers export vehicles to numerous countries across the globe such as USA, UK, Europe, India, Pakistan, and other developing countries. For any Japanese used car traders there are certain requirements and documentation that are necessary for traders before importation process can start.

New Rules for Taxation

A 7 band CO2 emission policy was applied in July 2008. According to this a payable on Category ‘A’ vehicles will no longer be depended on the engine size but rather on the level of CO2 emissions.

VRT is calculated on percentage of the OMSP in accordance with the following schedule:

CO2 Emissions (CO2g/km) VRT Rates

  • 14% of OMSP payable from 0 to 120g/Kg
  • 16% of OMSP payable from 120g to 140g/Kg
  • 20% of OMSP payable from 140g to 155g/Kg
  • 24% of OMSP payable from 155g to 170g/Kg
  • 28% of OMSP payable from 170g to 190g/Kg
  • 32% of OMSP payable from 190g to 225g/Kg
  • 36% of OMSP payable from 225g/Kg and more

On new as well as used car trade in Japan, the new system of taxation will be applied to Category ‘A’ vehicles.

In Japan used car traders and new car manufacturer both are on continuous growth. The auto industry in Japan makes it easier and cheaper for people to import cars from their countries. First and foremost thing done is to find reliable Japanese used car traders who can help you buy, import and document your car.

Maximum amount that will be remitted or repaid

  • New car, first time registration €2,500
  • Used vehicle but < 2 years €2,250
  • 2 years or over but < 3 years €2,000
  • 3 years or over but < 4 years €1,750
  • 4 years or over but less than 5 years €1,500
  • 5 years or over but < 6 years €1,250
  • 6 years or over but < 7 years €1,000
  • 7 years or over but < 8 years €750
  • 8 years or over but < 9 years €500
  • 9 years or over but < 10 years €250
  • 10 years or over Nil

Here the symbol ‘<’ means less than.

Minimum amount of VRT that will be charged have also been changed. Previously there was a minimum €315.00 charge for trading all used cars in Japan without any care of the value. In order to recognize the larger number of rates and the wider range from 14% to 36% for every CO2 band is introduced. These limits are;

Minimum VRT Rate

  • 14% €280
  • 16% €320
  • 20% €400
  • 24% €480
  • 28% €560
  • 32% €640
  • 36% €720

How Many Days Takes Japanese Used Car Traders

Usually a Japanese used car traders takes 4 to 5 weeks to ship the vehicle, but this time is relative to the weather conditions. In whichever country the used car is to be shipped, there will be a price to pay for shipping, insurance, duty and taxes.

The cost of duty is applied for both new and used cars trade from Japan to different countries. Cars that are exported to USA generally acquire a 25% cost for vehicles that are considered trucks and 2.5% for other cars. Along with this there are other taxes like gas guzzler tax. Gas Guzzler tax is based on the fuel economy rating of the automobile. The Insurance charges are usually applied on the basis of type of the car and the country it is being imported to. On the other hand, Japanese used car traders ( within Japan auto industry, cost highly less than new cars.

All above facts are more than enough for any Japanese used car traders who is trying to jump in this flourishing industry. In Japan used car traders can see huge list of opportunities as the customer base for cars from Japan has been spread worldwide.

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