Bogus online used car exporters from Japan

December 16th, 2009

We would like to warn our customers about bogus online used car dealers who disguise themselves as Japanese used car exporters.  An article published in East Africa news, these fake online car dealers from Japan have been cheating customers by offering vehicles at throwaway prices pretending that they are winding up their firms due to bankruptcy due the economic crisis.  Such schemes operated by bogus online Japanese used car exporters have caused a loss of over $5 million to vehicle importers from East Africa.

Unsuspecting car importers, mainly from Tanzania and other East African countries have lost millions of dollars due to these scams.  These car importers were lured into buying used Japanese cars by the low prices offered by these fake online exporters.  Many of these Web-based used car exporters are phony companies, which disappear once they receive the payment from customers.  Many of these fake companies are actually owned by Tanzanians living in Japan, who sell used motorcycles, cars, and trucks.

Online Car Dealer Scam

The scam operates in the following fashion

  • Customer can not get in touch with the dealer after sending payment.
  • The dealer does not ship the vehicle for a long period of time.
  • Vehicle received by customer is different from the vehicle he ordered and of low quality.

Please follow these safety precautions to avoid being scammed

  • Make sure that the dealer’s address is noted on his website.
  • Do not deal with companies whose phone numbers start from 81-90 or 81-80 (Mobile phone numbers).  Such dealers are hard to trace and can easily disappear.
  • Make sure that the dealer is an authorized member of [JUMVEA (Japan Used Motor Vehicle Exporters Association).
  • Some of the bogus companies involved in such scams are ‘Global Trading Co Ltd’, which is alleged to have become bankrupt, and ‘Car Zone Japan’, which is alleged to have cheated 9 customers for  over $90,000 and not delivered any cars. Other fake used car exporters include ‘41 Expo Inc. Ltd,’ ‘Progress Ltd’, and ‘The Trading Club’. We request our customers to take note of such bogus online car dealers from Japan.

We believe in delivering high quality vehicles to our customers and we feel sorry that such unscrupulous car dealers are tarnishing the image of Japan.  Please beware of such bogus car dealers and keep enjoying shopping with us.

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Japanese Used Car Market

November 12th, 2009

Japan is the largest automobile manufacturer in the world.  With eight major car makers, Japan created a history by producing 9.916 million vehicles in the year 2008.  Japan is also a very attractive market for used cars – especially exporting used Japanese cars to other countries.

The Japanese automobile industry is one of the biggest industries in the world. It supports number of companies that produces cars, trucks, ATVs, motorcycles, engines and spare parts, etc.  Japanese domestic auto market is the world’s third biggest after United States and China.  Japanese automotive manufacturers such as Toyota, Honda, Mitsubishi, Nissan, Isuzu, Suzuki, Subaru, Mazda, Kawasaki and Yamaha are popular names throughout the world.

How Japanese domestic car market is unique?

Toyota Motor Corporation accounts for 45 percent of vehicle sales in overall domestic car market, except for 660 cc mini cars. 660 cc mini car segment in Japan is unique and which makes up more than one-third of the auto market and receive tax incentives.  Daihatsu Motor Co and Suzuki Motor Corp together make up more than two-thirds of Japanese small car market.  Most of the auto models in Japan undergo a full model change every four years to stimulate overall domestic car market.

Japanese Used Cars

Japanese Used Cars

Used car market in Japan

It is very expensive affair to own a car in Japan.  In Japan, nine different taxes are levied on car buyers and users which makes car more expensive. The taxes increase as the car gets older, so Japanese prefer to sell off older vehicles.  These factors make Japanese consumers to go for a new car purchase very often.  This also adds to steep depreciation rates on used cars in domestic market.  This sharp depreciation makes Japanese used cars inexpensive enough for exporting worldwide. 

In Japan, public transport by trains is a real and viable alternative to traveling by road. Japanese world famous Bullet Train (Shinkansen) normally takes care of longer distance traveling requirements. This is why Japanese cars are generally used for short distance commutes. We can say it in other words that Japanese car do less miles per year.  Normally, most of the used vehicles are less than 9 year old and have very low mileage.

Japanese cars have almost certainly never been driven hard.  Japanese drivers generally keep their cars in perfect condition and well serviced.  Japanese cars also have more features compared to those sold in other countries.  The used Japanese car prices are among the lowest in the world.  All these factors make Japanese used cars very attractive for importing into other countries. 

Japan has many public Used Auto Auction Halls, which sell about 20,000-50,000 vehicles every day.  Most of these vehicles get exported to other countries in Africa, South America, Asia and Europe.

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Japanese cars at top in Reliability Survey

November 4th, 2009

US based Consumer Reports  – an independent and nonprofit organization – released their annual survey for car reliability recently.  According to this survey, Japanese cars are at top in nine categories among ten categories in the reliability rankings.  This car reliability ranking report by Consumer Reports was based on the feedback from consumers who own or lease 1.4 million vehicles.  The recent car reliability survey also says that 33 car models are Japanese out of the top scoring 48 models. Toyota had 18 models,  Honda 8, Nissan 4,  Subaru 3.

Cars from Toyota Motor Corporation won top positions in six different categories.  Toyota bagged top position for convertibles and sporty coupes with their model Lexus SC, and their FJ Cruiser won the in medium size sport utility vehicles.  Toyota’s TundraV6 came at the top in pickups and Sequoia in large sport utility vehicles.  Toyota Prius hybrid was also at the top in family cars and Venza in wagons and minivans.

Honda Motor Company won top positions in two different categories and Nissan Motor Company did for one category.   Honda won top position in small cars with their model Honda Insight Hybrid and their CR-V won in small sport utilities.  The first ranking in luxury cars went to Nissan Infiniti M35. 

As per the Consumer Reports rankings published by brands,  seven Japanese brands are in the top ten positions.  Toyota Scion raked the first followed by Toyota and Honda.  The forth one is Nissan’s Infiniti, Acura by Honda is fifth, Mitsubishi of Mitsubishi Motors Corporation sixth, Lexus brand by Toyota seventh and  Hyundai Motor Co’s Hyundai brand placed eighth.  Porsche brand was ninth for its Porsche AG and Ford Motor Co’s Mercury brand ranked tenth in top ten brand names.

These reliability rankings once again prove that Japanese cars are not just stylish but are excellent in reliability and performance.  Japanese car makers won seven top positions in 2008 and in 2009, they won top eight positions.  In 2006 and 2007, they had won all 10 categories. This only shows that Japanese car makers are consitently improving their quality and reliability.

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Toyota targets small car market in India

October 27th, 2009

Japanese cars are popular all over the world, however, they Japanese auto makers were very late in entering the Indian car market.  Suzuki was the first Japanese car maker to enter India in 1983, when the Indian Government relaxed entry of foreign car makers.  Toyota, the world’s largest car maker tied up with Kirloskar Group to form Toyota Kiroskar Motors 10 years ago; however, only recently they launched few car models like Innova, Corolla, Qualis and Fortrunner, Toyota Corolla Altis in India.  In spite of late entry of Toyota in Indian car market, Toyota car models have become very popular in India in a short time.

Toyota Motors, the Japanese automaker is now focusing on the small car market in India. Toyota has their next plan of introducing small 600 cc cars in India in the beginning of 2011.  Toyota expects to raise its market share by capturing the small car market in India, with a forecast of 5 % of its global sales coming from India.

Toyota plans to produce this small car at a new plant which they plan to build in Bangalore, which will have a .manufacturing capacity of 100,000 unit per year.  The company will make India a center for its small cars for which they will source 75 % of its components locally.  They plan to launch both diesel and petrol versions of small cars powered by a 1.2 and a 1.3 liter engine. The future plan of company is to export the car to neighboring countries.

The existing Toyota plant at Bangalore has an annual installed capacity of 80,000 units and employs about 4,200 people.  Toyota plans to hire 2,000 more employees for their new plant in Bangalore, India, so as to gear up their production to be able to launch their small car  by start of 2011.  The installed capacity of this new plant would around 70,000 units per annum initially and Toyota has plans to expand it up to 200,000 units per year later.  Toyota expects to build its presence in India through this small car.

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41st Tokyo Motor show 2009

October 20th, 2009

Tokyo Motor show is the event where Japan’s major automakers release details about the latest concept cars and motorcycle models they plan to unveil. The 41st Tokyo Motor Show will be held from Oct. 23 to Nov. 8, 2009 at Makuhari Messe, Chiba, Japan Automobile Manufacturers Association (JAMA) will host the event.

This year’s theme for Tokyo Motor Show is  ‘Fun Driving for Us, Eco Driving for Earth’.  Japanese car makers like Honda, Nissan, Mazda, Toyota and Motorcycle makers Yamaha, Suzuki will participate in this grand motor show.

tokyo motor show 2009

Tokyo Motor Show 2009 will also offer visitors the opportunity to test-ride the next generation vehicles so as to arouse their interest in these cars to influence their buying decision.  Some models at this motor show will be for test-ride only. The participating staff would include drivers who will explain the cars’ controls and features.  The course will run on an approximately 3 km stretch of public roads around the venue.  Participation will be on a first-come first-served basis, with ticket distribution by category on the same day.  Twenty six vehicles from six different companies are scheduled to be available for test drive.

This year major Japanese car manufacturers Honda Nissan and Toyota will introduce their electric vehicles in the Green Car category in this event.

  • Nissan will unveil Land Glider, Leaf (electric car) and Nissan Roox “super space” minicar .
  • Toyota FT-EV II, an ultra-compact electric vehicle and  FT-86 will be the debutant by Toyota.
  • Honda EV-N and Honda Skydeck concepts will be introduced in this motor show.
  • Daihatsu will be launching Deca Deca concept car model at the Tokyo Motor show along some five other models from the manufacturer.
  • Mazda plans to exhibit an updated version of the Kiyora, a compact and lightweight concept car first unveiled in 2008, as well as Taiki concept car.

Due to recession and adverse economic conditions,  major Japanese truck makers such as Mitsubishi Fuso, Hino Motors, Nissan Diesel have decided not to participate in Tokyo Auto Show this year.  Also, foreign automakers such as General Motors Corp., Ford Motor Co. , Chrysler LLC , Porsche SE and Daimler AG will not participate in this event this year.  The only foreign companies showing off their cars will be Hyundai, Ferrari/Maserati, Lotus of Britain and Alpina Burkard Bovensiepen of Germany.

If you are a lover of cars, you should not miss this grand event, as you can get to see and test-ride the latest concept cars in this automobile show.  You can find more details about this event at Tokyo Motor Show official website.

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Nissan Eporo Robot Cars Avoid Crashing

October 5th, 2009

Ever wondered if the cars of the future would move like a shoal fish?  Well, it surely may be a possibility with the direction in which the reserarch team at Nissan is heading for.  Nissan recently revealed its tiny robot car named EPORO which is designed to mimic the swimming pattern of a shoal of fish.  The robot car can travel in group of cars and can avoid collisions with other obstacles including its traveling companions.

Though the Japanese car maker Nissan claims that they got the inspiration for the design of EPORO from fish, the car robot resembles a lot to the Jawas in Star Wars.  A formal launch of the EPORO car robot is planned at the CEATEC Japan Design Fair 2009, this week in Tokyo, Japan.  The robot car Eporo is available in various colors, including pink and brown, and also have tiny eyes just like those of the Jawas in Star Wars.

The robot cars by Nissan use ultra-wideband radio and laser range finders to determine how far it is from other obstacles and the cars in the group.  They communicate with each other through radio signals to avoid collisions with one another or other obstacles.

This is not the first time that Nissan has been inspired by the animal kingdom.  The Nissan Biomimetic Car Robot Drive or BR23C concept was inspired by the flight of the bumblebee.  The Japanese automaker points out that fish can change their direction abruptly while swimming without bumping with other fish.  They can also travel side by side with other fish while keeping a certain distance between each fish.

Nissan Eporo is the first robot car in the world that can move together in a group by communicating its position and other information within the group via modern communication technology.  Nissan predicts that this new technology will be used in future passenger cars to avoid collisions and accidents.

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Kenya #1 Importer of Japanese Used Cars

October 3rd, 2009

At one time Russia and Chile have held the title of the largest importers of used Japanese vehicles. In 2009, however, as per Business Daily Africa News, Kenya has just taken the number one spot as the biggest importer of used Japanese cars.  In spite of the global slump in the auto industry, Kenya has achieved this feat – it just proves that importing a used Japanese car is a better alternative than buying a new one locally – in many countries of the world.

Kenya overtook South Africa as the biggest importer of Japanese used cars as used car imports in South Africa experienced a 34% decline in the second quarter of 2009.

Other countries like UAE, New Zealand, Bangladesh, who are also heavy importers of Japanese used cars recorded a drop in demand of up to 45% compared to 2008.  Russia recently changed its regulations to put restrictions on imports of right-handed used cars from Japan and other countries.  All these factors contributed to make Kenya as the largest importer of Japanese used vehicles.

Generally, Kenyans are not so keen on extra performance of the car, but they look for value for their hard earned money.  So, Japanese used cars are popular as they are reliable, efficient, low-dollar vehicles.  There has been a big demand of used cars in Kenya, but increased competition from used car dealers has made the market over-saturated.  Besides used car dealers, many private individuals from Kenya import cars and sell at lower prices as they don’t have to pay dealer fees.

Destination port for importing used cars is Mombasa in Kenya.  As per the Importing regulation in Kenya,   the age of the used vehicle has to be under 8 years, the vehicle should be Right Hand Drive, and it should be inspected and passed by Japan Export Vehicle Inspection Center (JEVIC).

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USS Auto Auction Sheet

September 27th, 2009

Many times we get requests from our customers who want to buy used cars from Japanese used car auctions such as the USS auto auction – to translate the auction sheets which are accompanying the car pictures.   It is really time consuming for us to translate each and every request, so we are writing this short guide to understand how the auction sheet can be decoded.  There are various used car auction houses in Japan, but more or less they follow a standard format for the auction sheet as in the following picture.

USS Auction Sheet

USS Auction Sheet

We have tried to write the English meaning of various Japanese terms used in the auction sheet.  Standard codes used by the auction inspectors are described with the following convention.

A1 :  Scratch or crack, 2- 3 cm
A2 :  Scratch or crack, less than 10 cm
A3 :  Scratch or crack, more than 20 cm
B1 or U1 : Dimple
B2 or U2 : Dent, less than 10 cm
B3 or U3 :  Dent, more than 20 cm
E : Dimple
H : Spare tire
W1 :  Repainted as good as new condition
W2 :  Repaired & repainted in good condition
W3 :  Repaired but the surface finish is bad
Y1 :  Minor crack 2-5 cm
Y2 :  Crack, l ess than 10 cm
Y3:   Crack, more than 20 cm

Car Features are mentioned as acronyms as follows

4WD : 4 wheel drive
AB : Air Bags
ABS : Anti Lock Brakes
AC : Air Conditioner
AW:  Genuine Alloy Wheel
CD : CD Player
LS : Leather seats
MD : MD Player
Navi : GPS Navigator
PS :  Power steering
PW : Power window
RK : Remote Key/ Keyless Entry
SR :  Sun roof
TB : Turbo
TV: TV (NTSC system)

Auction Grades are specified with the following codes

S : As good as  new condition. Less than 3 month old or under 5,000 kms

5 : Mint condition. As good as new condition.  No dents or scratches.

4.5 : Excellent condition.  Minor dents or paint scratches.

4 : Very good condition.  Well maintained, A few slight dents and paint scratches

3.5 : Good condition with some minor dents and minor scratches.

3 : Average condition with obvious dents and scratches. Some repairs needed.

2 :  Below average, unsatisfactory condition, some serious repairs needed.

1 :  Modified vehicle. Its engine, turbine were modified.   Body has defects by hail or body size has been modified.

R or A : Vehicle with Accident and damaged history, but repairable ,or re-conditioned vehicle.

RA : Very minor accident history.

***  Accident car or “As it is condition”.

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Why import Japanese Used Cars?

July 8th, 2009

In the current recession, it is a good idea to import an used car from Japan.  Why?  What advantages would anyone have in importing used cars from Japan?  Well, you may be living anywhere in UK, Australia, Uganda or Nepal – you can of course buy a Japanese brand car locally in your country.  However, there are few good reasons why you should consider importing cars directly from Japan. I will try to explain this in detail in this post.

Great Savings on Used Cars

One advantage in importing cars from Japan is in the money you can save.  It is possible to save up to 30% when you import your used car from Japan than when you were to purchase a similar car locally.  If you are paying $12,000 for a used Japanese car in your country, you could probably get a similar model for $4000 less.  So it is definitely worth the effort of importing cars directly from Japan!

Wide Selection of Car Models

All the major Japanese automobile makers first release their latest car models in Japan.  So, if you are importing used cars from Japan, you get to choose many more models with more options than what you get in your country.  You can also choose your car from thousands of cars going on online auto auctions in Japan.  You can get some of the latest and hottest car models from Japan.

Latest Car Models from Japan

You can give a boost to your ego by owning the latest model of popular car brands.  You can be the very first person in your country, who is driving a cool brand new car model before anyone gets his hand on that model.  You will find some real gems when you import cars from Japan.

Buying and Re-Selling Used Carsfor Profit

Even if you are not importing a Japanese car for your own use, you can always consider this as a business opportunity.  I know many small used car dealers who are making huge profits from by importing cars from Japan.  This is because the margin is great and you get bulk discounts and savings in shipment if you order by containers.

High Quality and Performance of Japanese Cars

If you are buying Japanese used cars from auctions, you can be very sure of its quality and performance – without even having to take a test drive.  This is because every car that goes on auction has an auction inspection sheet which mentions the car’s grade (1 to 6), defects if any, past accident history if any.   So you know in advance what kind of car you would be buying and there would be no surprises later.

With so many good reasons, it definitely makes sense to import Japanese used cars – especially in these days of recession.

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Japanese used cars for Tanzania

June 24th, 2009

Many used car dealers and private importers from Tanzania wish to import used cars from Japan.  However, many of them are not clear about the requirements for importing Japanese used vehicles into Tanzania.

Please note that as an importer,  you must have your TIN (Tax Identification Number) and be registered with the Tanzania Revenue Authority before clearing any imported vehicle into Tanzania.

It Is also mandatory to have IDF (Import Declaration Form) for all imports into Tanzania.  If the value of the imported article is more than US$ 5,000,  a pre-shipment inspection of the article is a must.  This clause applies to all used cars imports  to Tanzania,  East Africa.  Cotecna Inspections is the company in Japan, which is licensed by the Government of Tanzania to carry out these inspections.  You will need to pay the inspection fees for getting your vehicle inspected before importing into Tanzania, East Africa.

For importing used Japanese cars and other automobiles into Tanzania, there is no age limit for the vehicle;  however,  it is mandatory that the vehicle to be imported must undergo inspection for road-worthiness before it is shipped from Japan.  If you are importing Japanese  used cars from Japan,  you must get an appraisal certificate issued by JAAI  (Japan Automobile Appraisal Institute).   JAAI is founded as a non-profit organization and supervised by the Japan Ministry of International Trade and Industry.

The importer will have to pay Imports duty and other taxes once the vehicle arrives in Tanzania.

• For used trucks, buses, vans and other commercial vehicles the VAT is 20% and Import Duty is 15% the dutiable value of the vehicle. 

• For used cars and other vehicles with engine capacity more than 2,000 cc, the VAT is 20%, Excise duty is 10% and Import duty is 25% of the dutiable value of the car.

• For used cars or other used automobiles with engine capacity up to 2000 cc, the VAT is 20% and Import duty is 25% of the dutiable value of the car.

On top of it, you will have to pay IDF (Import Declaration Fees) which are charged US$ 10 per unit + 1.2% of FOB value.

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