Killer Reason 1: Used Cars From Japan Are Cheaper

Yes, they have to be shipped all over the world to get to you, but even despite that, you’ll find that used cars bought directly from Japan punch above their weight in terms of value for money.

So why are used cars so cheap in Japan? Well, first of all, you know it’s not because they’re shoddy in the first place. Japanese brands such as Toyota, Nissan, Honda and Mitsubishi are known throughout the world for their quality and longevity. They lead the world. No, there are several good reasons why you can buy mint condition cars cheaply in Japan.

First of all, the dream of every Japanese company is to be number one in its local market: Japan. In the auto industry, being number one means being the guy who has sold the most cars in a given year. But why do you worry about this? Not looking for new cars anyway? Well, think about it: if you’re Toyota and your motivation is to sell the most cars to be number one, are you too concerned about making a big profit on each vehicle? Obviously not. Sure you want to make some profit, but basically you want to swap as many units as possible as fast as possible, and to do that you need to keep prices low. So the fight to be the number one new car maker has the side effect of keeping new car prices low. And if the car starts low when new, it will only be even cheaper when second hand.

So the car is cheap when it’s new. What about the used car market? With all these cheap new cars, does anyone buy used vehicles in Japan? Of course, just like everywhere in the world, there are also used car dealers in Japan. But the next reason that Japanese used cars are relatively cheap is that the Japanese themselves are culturally programmed to prefer new products. Let me give you an extreme example: where I’m from in the UK, a house is still considered basically new even after ten or fifteen years, and people live in houses that are literally hundreds of years old. Well, get this: in Japan, the average age of a house is 27 years! This means that an average house in Japan is torn down and completely rebuilt every 27 years. That’s how strong the preference for “new” is among the Japanese. So when a Japanese person goes to buy a used car, he won’t see it as if he had the value of a new one.

The final reason is that Japan has a strict and expensive MOT system that kicks in 3 years after the car is purchased. (Language-minded readers may be interested to know that this test is called Shaken, pronounced “shah-ken” in Japanese.) Imagine you are Japanese and have a car a few years old that is approaching its “Shaken” test in a few months. You’d be pretty tempted to change it, wouldn’t you? And this is exactly what happens, leaving many relatively new, low-mileage cars on the market.

For Japanese companies that own vehicles, another important turning point is the end of the fiscal year, which also coincides with the expiry date of the car tax. This explains why you’ll see an increase in the number of cars going through Japanese car auctions in the spring of each year, as companies get rid of their old cars before this deadline passes.

Killer Reason Two – Low mileage and good condition

If you ask someone who has never been to Japan what they imagine it would be like, they will often mention Zen temples, mountains or rock gardens. Very “Last Samurai”, but not the reality of everyday life for most Japanese. The fact is that the vast majority of the population lives in the concrete jungle of large urban centers. Huge metropolises like Tokyo, Osaka or Nagoya are where the population is concentrated. That’s right: these are urban driving environments with traffic lights every few meters, where a trip of a few kilometers can easily take more than half an hour.

What does this tell you about cars in Japan? Easy! Usually they haven’t gone very far, and where they have been, they haven’t gone very fast. In fact, judging from my experiences, the average Japanese car will have spent most of its life idling at red lights.

Second-hand cars in Japan not only have lower mileage than their counterparts, but have also been better maintained. To a certain extent, the cars here are still a status symbol. People who get their cars new make sure they stay in that condition for as long as possible, passing on the benefits of thorough maintenance to the next person who gets that car.

The Third Killer Reason To Get Used Cars From Japan: Fuel Economy

There was a time in the early 90’s when a barrel of black gold could be yours for just $10. That’s right, ten bucks! Doesn’t it seem like a long time ago now? Truly, it was a different world. A world ruled by giant SUVs and pickup trucks. And yet, it was in this world at this time that Japanese companies like Toyota and Honda started working on the hybrid technologies that are all the rage now.

Why were Japanese automakers so far ahead of the game with this hybrid technology? Why were they pouring millions into developing these new ideas when the other big players were catering to the demands of their increasingly thirsty vehicle customers?

One big reason is geographical: Japan has almost no natural resources. It is one hundred percent dependent on foreign oil. Forward-thinking Japanese automakers not only realized that the black stuff would one day cease to exist, they also realized that in order to win big sales in their dependent local market, they would have to ensure that their cars were fuel efficient.

Of course, if you know anything about the car market in Japan, you’ll know that a class of vehicles called Kei (pronounced “kay,” meaning “light”) have also existed for years, cars that have a maximum capacity of 660cc. Automotive companies have vast experience in manufacturing these lightweight, compact and highly fuel efficient vehicles. The same light vehicle technologies with small, efficient engines can be applied to the full spectrum of vehicles. This is another reason why the Japanese are ahead of the game now. So what you find is that when it comes to fuel efficiency, the cars in the front are Japanese.

And what does that mean to you? Well, the cars your customers want right now, cars that drink, don’t swallow, are ready and available right now in Japan.

final big bang

So there you have it friends. Three great reasons why the cars you want for your used car dealership business are waiting for you in Japan right now. Offer them to your customers and they will not only buy them, but also thank you for it.

But wait a minute! Houston, we have a problem: the cars are in Japan… and you’re not. And you don’t speak Japanese. How can you square this circle? What you need is a partner, but how can you find one? Well, if that’s you and you’d like more information, contact me directly at www.integrityexports.com and I’ll be happy to help you get started.