Posts Tagged ‘buying’

Japanese Auto Auctions (Part 2)

January 11, 2008

Start of where we left off (see Part 1), I will continue to explain some more aspects to Japanese Auto Auctions. The last article was about why exporters (also called bidding agents in these situations) choose auto auctions as their primary source for cars and the importance of picking a good partner for the Japan side of buying. This article will explain what types of auto auction are in Japan, and their benefits and disadvantages.

Japanese Auto Auctions: Types of Auctions

There are many auto auctions in Japan. Some are bigger than others, but you can easily categorize them into four types:

Independent Company Auctions

  • Many and are generally on the smaller side.
  • Might show between a couple of hundred and over 10,000 cars a month.
  • Examples would be NDAA, SAA (Sapporo AA), and the larger Zip.
  • Either sell everything, or they specialize.
    • For example, Zip sells a lot of imported cars (non-JDM) and TUS specializes in motorcycles.

Manufacture/Dealer/Rental Auctions

  • Set up by major dealers and/or manufactures to sell off used cars from different places.
    • For example, Toyota dealers can sell off trade-in cars at a TAA auction site.
    • Rental companies, such as ORIX, will have auctions to sell off their old vehicles.
  • Other examples would be SUAA (Subaru), SAA (Suzuki AA), HAA (Honda AA), and NAA (Nissan).

Auction Groups

  • Control large shares of the market.
  • Organized as either as a union of independent auction, a single company, or subsidiaries under one company.
  • The main AA groups are: JU Group, USS Group, and ARAI (also called AAA – Arai Auto Auction) Group.

Online/Satellite Auctions

  • Operate solely, or at least mainly, by internet or TV Satellite.
  • Some have their own stock, and some auction on the behalf of other auction companies.
  • Examples are AUCNET, ASNET, GAO!, and HERO (also called Hiro).

Japanese Auto Auctions

January 3, 2008

Well, the Holiday season has passed and now we’re in 2008. I had an excellent time with friends and family. Anyways, to the subject Japanese Auto Auctions:

When exporters are looking for a reliable source of supply for their customers. They often turn to Auto Auctions as the best source. The reason? Well, almost all of them give impartial assessments (NAA Nyuusatus just sells as-is) in their Inspection Sheets, there is a large section to choose from, and there is a reduced risk of getting cheated (most AA allow you to return a car that is below the ratings they give it). An auto auctions sells are directly linked with how many shoppers use their auctions so they are buyer orientated.

Other options exporter have as sources are usually dealership or individuals. Dealerships are quite expensive compared to the other choices so they are usually the least desired. Individuals (such as those found on Yahoo! Japan Auction) are rather risky as they generally have no reputation to maintain (unlike businesses) and can very well cheat you with a much worse off car than you expect.

There is a famous case in New Zealand where this inexperienced import bought a car from an individual for a friend. Ended in court which determined ultimately the friend (the actual buyer) was responsible (not the inexperienced importer) because they were both willing to continue the purchase even though they knew the risks involved. So this is why you should choose a good partner (whether your using an exporter in Japan, or a importing agent in your country) to help you import the right car.

This is why exporter use Auto Auctions as their primary source. You should realize though that exporters are not the main buyers in Japanese auto auctions. They are in fact a very small group of people who use the Japanese auto auctions. Most people buying at the auctions are usually used car dealers in Japan trying to add to their stock.

Next week I’ll add some more info on Auto Auctions.