Japanese Used Car Auction related costs
Most Japanese companies exporting cars to different countries add FOB to the final price of the car to be shipped. For the Japanese companies exporting cars, FOB means “Free on Board” and includes all expenditures of the Japanese car dealer. Same applies to the used Japanese cars purchased from Japanese car auctions
In general, a total cost for a used vehicle or other machinery purchased from Japanese car auctions is comprised of the following fees:
Prices at Japanese Car Auctions are unpredictable. Even if three-month statistics provide data for average price of the specific vehicle actual successful (winning price) may differ depending on demand, seasonality and other factors. Car successful bid price is the last highest bid made by Japanese Car Dealer. It may be lower or higher than the “wish price” of a customer. The Japanese Government imposes 8% sales tax which is calculated as a percentage of the final price of any transaction/purchase made by final consumer. In case of a car purchase it is 8% of successful bid price and is added to FOB price Every single Auction House in Japan charges auction fee for sales and purchase of the car to be auctioned on that specific Auction house. Payment amount varies from one Auction House to another one. Japanese Car Dealer who acts as an agent for its customers pays the fee and includes to FOB price. According to the Japanese Law on Reclamation of Reusable Resources from End of the Life of Automobiles to prevent unlawful dumping and improper disposal of end-of-life vehicles. Fee amount depends on size, age of a vehicle and other factors and it is bigger for the western-made vehicles There are over 100 Auctions throughout Japan. The distance between two remote Auction Houses (JU Sapporo and JU Okinawa) is over 3000 kilometers and delivery of vehicles from Auction Houses may vary from few thousand Yen to tens of thousands Yen. Japanese Car Dealers try to buy vehicles from the nearest Auction Houses to make the final price for vehicle a bit cheaper Price for vanning and load into container depend on availability of infrastructure, machinery and equipment and existence of own container terminal. While some Japanese Car Dealers do it by themselves, some other Dealers outsource this operation. In most of the cases it is safer, faster and cheaper if everything is done by Dealer itself. Again, if the dealer own its own carrier trucks then cost of delivery to a port of shipment is cheaper. Sometimes outsourcing can be cheaper than doing it on your own when economies of scale kick in Cost of load onto the vessel is almost standard around all ports in Japan. Lead time is crucial where companies with large volume have more flexible arrangements with forwarders and customs Japanese Car Dealer’s commission/profit highly depends on frequency of the shipment to the specific customer and number of vehicles to be shipped to the specific customer Sea/Ocean Freight cost and insurance are totally depend on distances covered and shipping line prices and may vary from on line to another one
Final cost for the car shipped to other countries may include (note that Japanese Car Dealers do not bear these costs):
