Note:-Before i continue posting the guide, i want to make it clear that this is not a step-by-step "How to". The main purpose of this guide by far is providing information. In practicality, you would consider costs way before you actually even think of the buying options. For those of you seeking practicality, assume that you will be paying atleast double the price tag in the home country. Actual damages can be known when we get to the duty break-up part.
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So, You do realize that you'll be paying mammoth tax money to the government so that it can NOT be used to give us better roads? Still think you can get a good deal? Are you ready to face the hassles of customs clearance? Know a prominent politician? Don't know anything but still want to know how close you can get to getting your dream car?Great! read on! Going Ahead: Buying
Now, There are two main ways to buy these vehicles,
1) Buying via Auction (centralized used car auction system, most popular choice for citizens) and
2) Buying via Dealer, i.e. buying from a dealer/agent’s stock.(This is usually where more "outsiders" shop)
1) Buying Auction Vehicles
As mentioned above, when people in Japan want to buy a vehicle, they have two options. They can either get one from a dealer's lot or from an auto auction. Of the two, buying from auctions is the most popular.
Below you can read the benefits of buying via auctions and how to buy from them. Knowing what to do and what to watch for can make it a more enjoyable(well, actually, less frustrating) experience and you'll more likely be able to get what you want.
It is important for anyone seeking to buy from auctions to know that they cannot buy directly from them. Auto auctions legally can only give membership to those with trading licenses for used cars. (i.e. Dealers or Exporters). This means that someone else will be bidding on your behalf. BENEFITS OF AUCTIONS:-
• Saves you time on searching because there are huge selections available.
• Are a safer way to buy - you're getting independent reviews of a car's condition.
• Often give much more competitive prices.
• Unlike dealerships, the reputation of an auction house depends on the quality of their inspection; therefore you can be assured their inspection will be top-notch and transparent.
AUCTION PROCESS :- How it works.
Here are some guidelines of what happens at auto auctions in Japan and what you should do to purchase vehicles from them. Knowing what will happen will help you avoid pitfalls and make better decisions when searching, bidding, and purchasing. Im not sure how usefull this is to the average guy who will probably get everything done through a dealer/agent, but more knowledge is never a bad thing... i think
1) Vehicle Inspection:-
All vehicles must be first inspected by the auctioneer before they can be auctioned. Because the reputation of an auction house is in its accuracy of assessing a vehicle's condition, they strive to give fair inspections. When they inspect, they use a form called an 'Inspection Sheet'(more on this later). In general, you will find the following:
• Vehicle's Data (registration, chassis number, etc.)
• Any structural damage.
• Any cosmetic damage.
• Any mechanical damage.
• The vehicle's Rating (example. 4.5)(more on vehicle ratings later)
• The vehicle's Equipment (example. alloy wheels)
• Assessor's Notes (written in Japanese - you should get them translated)
Take the time to look at Inspection Sheets for more information. Remember to make sure you bidding agent takes the time to double check a car you want to bid on. Auto auctions allow members to examine cars on the day of the auction before bidding begins.
Vehicle Has Been Listed for Auctioning
When a vehicle gets listed for auctioning, an auction house will assign it to an auction date and add the vehicle to its database for members to view. Members of the auction can find this vehicle via internet or fax. For an example, visit this demo site:-
Nihon Cars: Search Auction Vehicles ****** . If you have an agent searching for you, he/she will notify you of possible candidates. If you are planning to look yourself on the internet there may be auction listings available.
A Vehicle Gets Selected?/Picking a Vehicle.
There are many ways to find vehicles but before you begin, you must choose who will search, your agent or yourself. He/she will need to know what you want and how flexible you are. Or, you can search yourself which could become time consuming and you will be unable to access all the places your agent can. If you choose to use the agent to search, you must express EXACTLY what you're looking for.
You might find an exporter/agent doesn't really know English very well. Make sure you either work with him/her in very simple terms or hire another one that speaks English better. With all agents, have them repeat what you say to know if they understand your terms. Also get things in writing whenever possible.
If you absolutely MUST search yourself (some exporters will give you access to listings), you may want to prepare ahead for the task. Check out the definitions of any terms you might not know (example. FOB, PS, FAT, etc). Also check Japanese to English Translations for any words not in English found on Inspection Sheets.
Important things to watch for when considering a car:
• Mileage
• Ratings (Overall, Interior)
• Manual or Automatic Transmission
• Gas or Diesel
• RHD or LHD – If it doesn't say anything, it's RHD. If it says LHD, you can conveniently say "next please" and move on.
• Year - it can be the production year or first registration year. Knowing both is good for importing reasons among other things.
• Check production year by chassis number, or check through your exporter (bidding agent).
You should find a few vehicles you like before you stop searching. With a few choices to choose from it will make it easier and quicker for your agent to get you a car. Try to get a selection narrowed down to about 3-6 cars.
The Buyer Prepares the Bid
Once you find what you like, contact your agent to place a bid. There are a number of different methods that a bidding agent (usually your exporter) may use to bid.
Auction houses use anything from an advanced automated bidding system over networks to simple email and fax.
At the time of placing a bid, you usually must either place a deposit of ¥100,000 to ¥200,000(43,312 to 86,623 INR) or pay 50-100% in advance. Both charges are common among exporters. If a bid fails, you will be either refunded or given the opportunity to use this money for another bid. Expect your bidding agent to charge around a minimum of ¥1000 for a failed or successful bid because this is what is charged by the auction house to enter bidding.
Remember to clearly convey which car you want and what your maximum bid is to your agent. Communication can be difficult if your bidding agent doesn't speak English very well. Fortunately, most exporters are providing automated systems that can translate your input into Japanese and back.
You must remember that you are simply bidding which is not the same as purchasing. When you are buying an auction car, first you place your bid. If your agent wins the bid and fulfill all other conditions, then you can begin purchasing. Bidding For Your Choice
This is where you're exporter (acting as bidding agent) is especially needed. Auction houses are usually opened once a week on a pre-selected day. Those who wish to participate must come a few hours earlier to inspect the cars they will bid on. After inspections occur, the auctioning begins. If a vehicle is as you want, your agent will bid up to your maximum. If you have the highest bid, you will most like be able to continue on to purchasing. If some else outbids you, your exporter will try to find another car. If necessary, you will be refunded. Wont go into details, general auction stuff.
Purchasing After a Successful Bid
At this stage, you'll be required to pay the remaining balance. You will also need to pay freight charges, marine insurance, and possibly other charges/fees provided these are the same people taking care of the above.
Most exporters will use only wire transfer (often called Telegraphic Transfer or TT) for payments. Buying by credit/debit card is usually not possible due to large fees the seller must pay to the banks. Once everyone is in agreement, you will receive a purchasing agreement and invoice. Some exporter may want you to sign both and fax back copies for security reasons.
That should be enough on auctions.
2) Buying Stock/Dealership Vehicles
Stock vehicles are the automobiles that are already in the possession of the dealer, who is selling to you directly. Prices are usually fixed, meaning there is an asking price without any bidding involved. This is why Stock vehicles are also called Dealer Stock or Fixed Price vehicles.
Benefits of Stock
There a few things that might make you want to choose buying directly from a Dealer than using Auto Auctions. Skipping the auto auctions would be beneficial if you:
• Want a car quicker.
• Want a set price.
• Want a more personal and closer account of the cars condition.
When buying Stock vehicles which have fixed prices, you will be able to easily calculate the total cost (or better yet, you can ask for a quote). Also, Dealers are sometimes able to provide a better analysis of the vehicle than a quick auction inspection(depends very highly on the dealer, the reverse is true in most cases).
Listings
There are two main advantages for searching Stock over Auction: One is that the prices are at a flat price which is simpler and usually "first-come-first-served". That means there is no waiting for an auction day or worrying about being outbid.
Also, you can always get more details about the car on request and the dealer might be able to inspect the car's condition better(longer would be more appropriate) because the dealer is in possession of the vehicle(s).
Ordering
Compared to bidding/auction, ordering can be much easier. All you must do is simply send an order form/message (via email and/or equivalent) after you're absolutely sure you want a car. After you submit, you should be contacted so you're able to move on to purchasing the vehicle. Some exporters may require some form of deposit to hold the vehicle for you from others making offers between the time of ordering and payment.
Purchasing
Same thing you would do when "Purchasing After a Successful Bid".
Recheck all information and ask all the questions you want. Think about the difference in auto value Vs money and the price to performance ratio the Japanese get as compared to Indians. Simultaneously prepare yourself for the soon to follow kick-in-the-groin called Indian duties. If you still find value in your purchase, you have made a wise one. Start preparing for the next step :- Advancing Forward: Import/Export
>>>To Be Continued<<<