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Billions lost to ghost Japanese car dealers

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Dar es Salaam. Several Tanzanians have collectively been cheated out of over half a billion shillings by Japanese companies that lure customers with prospects of owning posh, unbelievably cheap vehicles.

They are victims of transactions under which they place orders and commit their money for vehicles whose photo impressions they select on line, but which are never delivered.

Consequently, sweet dreams have turned into ‘financial funerals’ for local families most of whose lost money represented long-time, painstaking savings – while the crooks in the Pacific Ocean island nation laugh all the way to the bank.

The crooks are negative beneficiaries of the availability and relatively cheap prices of secondhand vehicles in poor, developing countries, including Tanzania.

An attendant factor is the spread of Information Technology, one of whose features is on-line trading, which crooks can, and are applying to con gullible, trusting potential customers.

The Citizen on Sunday has established that Tanzanians have lost an estimated Sh600 million to fake Japan motor vehicle dealers whose advertisements for relatively low-cost purchases for posh cars are most tempting, and virtually irresistible.

Deeply frustrated victims of the fraud have filed complaints to the ministry of foreign affairs and international cooperation, the International Police (Interpol) and Tanzania’s embassy in Japan.

They hope that their interventions would help to track down the culprits, and enable the victims to recover their money.

The foreign ministry’s senior Information Officer, Mr Assah Mwambene confirmed that they had received many such complaints.

“We are trying to see how to help but in the meantime we advise those wishing to buy cars online to first establish the existence and credibility of the companies before committing themselves to any financial transactions,” he said.

He said the ministry and its embassy in Japan would be ready to verify existence of such online companies. “For some of the cases it is now very difficult to trace the dealer companies as they no longer exist,” he explained.

Inquiries reveal that similar cases of online fraud have been reported in neighbouring Kenya and Uganda.

And because the theft was tarnishing the image of genuine Japanese dealers, one popular online car dealer, TradeCarview, has raised the red flag.

The company has issued on its website, a number of blacklisted companies it says should not use its platform to access prospective clients.

It says the blacklisting was based on different factors such as the nature, severity, and the number of complaints received from its users whom it had guaranteed a safe and trustworthy trading environment.

TradeCarview says the same blacklisted firms have been flagged at the Tanzanian embassy in Japan.

“It is the responsibility of the buyer and seller to take necessary precautions. We do not take responsibility in the event of such an occurrence,” it warned in a statement.

According to the company, they have received such fraud cases from Tanzania, Burundi, Kenya, Malawi, New Zealand, Uganda, Zambia and Zimbabwe.

The released names of companies it says it has blacklisted include, Fuji Global, Sunada Auto Sales, Seven Seas Motors, Bas Japan and Exco.

Others are F.A.R Trading, Dream Stock Trade, Happy Autotrade and Superior, all of Japan.

However, TradeCarview says there could me more companies still on a mission of coning prospective buyers.
Efforts by The Citizen on Sunday to get a reaction from the Japanese embassy in Dar es Salaam didn’t succeed.

The agony of Mr Isaac Elly, who is based in Arusha, mirrors that of other victims. In 2010, he placed an order for a 1994 make Toyota Land Cruiser Prado worth $8400 (over Sh13m), but hasn’t received it to date.

Mr Elly said his deal was through a company called CAT, which had been hosted on TradeCarview’s website.

“A person introducing himself as an official at CAT has taken me in circles for the last two years despite promises to ship in the car after 10 days of receiving full payment,” he narrated sorrowfully in a telephone interview.

Numerous communication involving Mr Elly and CAT show the official at the other end of Japan introducing himself variously as Maeda, Akihiko and Masa.

In an excerpt dated September 5 2011, Mr Masa writes to Mr Elly apologizing for the delay.

“We have been confirming about the documents to our shipping agent. According to the shipping agent, your car was carried on board by a wrong ship and, your car was shipped to the Caribbean. Therefore, our shipping agent receiving of the document seemed to be late. The shipping agent did a procedure to return your car to Japan. We experienced such situation for the first time.

We are very sorry for such a situation. We must apologize to you,” read part of the excerpt.

Mr Elly then sought assistance from Mr Patrick Makundi, the director of SimplyCar Trade, a local car agent and the two resorted to report the matter to Interpol and the Japanese embassy in Tanzania. Nothing much however has come out. “The two bodies have failed us in tracing the company,” said Mr Elly.

The victim has however not given up; he is determined to sue CAT once he manages to trace the whereabouts of the company.

According to Mr Makundi, the existence of TradeCarview has given a leeway to people masquerading as car sellers in Japan.

Mr Makundi, whose company acts as a link between online car buyers in the country and approved sellers in Japan confided to The Citizen on Sunday, that the existence of such crooked dealers is always short-lived in TradeCarview’s website.

He said that prospective buyers from Tanzania and other parts of the world would engage in business with such unscrupulous dealers, unaware of the origins and the existence of such dealers.

“Once they have managed to get money from such ignorant customers they disappear without trace,” he said.

“When it reaches that stage, it is tricky to trace the real locations of the ghost dealers as even their physical addresses no longer exists online,” he noted.

Mr Makundi also told The Citizen on Sunday that customers who have fallen prey to such dealers are those who have bumped into them.

“It is becoming a worrying trend and it could affect business ties between Tanzania and Japan,” he said.

Corroborating, an officer with Dar-es-Salaam- based Car Junction Limited, a customer bonded warehouse, who sought anonymity, said their firm discouraged doing online transactions.

“Car dealers are mushrooming nowadays, it is advisable to purchase vehicles from warehouses or showrooms,” she said.

Reposted from Billions lost to ghost Japanese car dealers – The Citizen
Edward Qorro The Citizen Reporter
Saturday, 18 February 2012 at 20:38

Toyota Coaster Arrives at St. Andrew Kaggwa in Malawi

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St. Andrew Kaggwa in Lilongwe, MalawiThe beautiful children of St. Andrew Kaggwa in Lilongwe, Malawi, arrive at school on a Toyota Coaster bus imported by Father Harvey Chikumbu, direct from Nichibocars of Japan.

What a wonderful sight to see so many happy children arriving fresh and ready to start a full day of study at St. Andrew’s.

I was also very honored and humbled to listen to Father Harvey’s celebration of mass Monday morning in their local language. It’s a memory I won’t forget and a treasure I can hold in my heart forever.

Thanks Father Harvey for the wonderful opportunity to see you children and to celebrate mass in Malawi. I wish you all the best and may God bless you and your entire congregation.

James Hanna
Nichibocars, Japan

Kenya Embassy Issues Alert on Japan Used Car Fraudsters

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Importers of second-hand cars are losing millions of shillings to fraudsters who have invaded the Japanese vehicle export market.

At least 30 victims have approached the Kenyan embassy in Tokyo for assistance in recovering money they paid to phoney companies for delivery of cars to Mombasa only for the alleged exporters to disappear after receiving payments.

“This embassy has recently been inundated by requests for intervention from many Kenyans. Hundreds of them might have fallen into this trap according to available records,” said Paul Ndung’u, the deputy head of Kenya’s Mission in Japan.

The embassy posted a warning on its Web site last week after meeting the representatives of the 30 victims who have come forward and who have backed their claims with documentation.

“If this trend continues, our next posting may include details of the frequently reported culprits in the Japanese market,” Mr Ndung’u told the Business Daily by e-mail on Thursday.

The criminals are said to be using computer graphics to create Internet advertisements that display their banners over pictures of stolen vehicles or those photographed from other dealers’ yards and at auctions. Data from the Japan Used Motor Vehicle Exporters Association (JUMVEA) puts the average cost for a second hand saloon car at $10,000 (Sh850,000). This means that 30 victims who have sought the embassy’s assistance may have lost Sh25.5 million to the fraudsters.

Kenyans have exhibited a huge appetite for second-hand vehicles, helped by a rule introduced five years ago allowing them to import cars so long as they are not more than eight years old since assemble. Increased incomes have also fuelled demand, with the average salary for workers now put at Sh50,000.

The demand for convenience that comes with cheaper high-performing cars caused in part by the chaotic public transport sector has made Kenyans an easy prey for Internet fraudsters, embassy officials said.

“Kenya is clearly among the lucrative and most-targeted markets for unscrupulous Internet- based motor vehicle fraudsters,” Mr Ndung’u said, adding that even senior government officials had lost money to the cartel.

Data prepared by the Kenya National Bureau of Statistics indicates that a total of 155,852 vehicles were registered between January to December 2011. Out of this, only 12,185 were sold by local new vehicles dealers according to Kenya Motor Industry Association (KMI) records. This means 92.2 per cent were imported into the country.

Close to 80 per cent of all classes of used cars imported into Kenya comes from Japan, according to data from the Japan Export Vehicles Inspection Centre Company Ltd (JEVIC) which ranks Kenya as the sixth largest destination globally for used passenger vehicles from Japan.

This includes vans used for passenger services where 27,779 units were shipped in from Japan last year, making Kenya the second single largest destination in Africa after South Africa which ordered 45,425 units.

The red flag from embassy officials comes hot on the heels of an alert from the Kenya Auto Bazaar Association (KABA) circulated to its members last week over the emerging car theft racket in Japan.

KABA officials said the racket started as acts of small-time conmen that has become common in the e-trade era but has lately become rampant despite joint attempts by the Kenya embassy and Japanese External Trade Authority to curb the crime.

“Tracking down this cartel has proved very expensive. Many importers give up the chase as the cost of procuring legal services in Japan is most of the time higher than the value of the vehicle,” KABA secretary-general Charles Munyori said on Thursday.

According to embassy officials, importers who opt to pursue the phoney firms face a legal dilemma. The Japanese legal system classifies defrauding a client in a private business deal as a civil offence for which local police cannot arrest or prosecute, Kenyan embassy officials said.

Mr Ndung’u said silence by victims and lack of publicity on the pitfalls of e-trading has played into the hands of fraudsters.
“They are assured of another opportunity to defraud one victim after another without the fear of detection”, he said.

The conmen change their telephone numbers and Web sites immediately they sense danger.

The bank accounts to which Kenyan victims have wired their money, the mission’s investigations found, are opened using fake names and identities for a particular period of time to accomplish the fraud.

“You cannot easily track down these master criminals because Japanese banks can accommodate ATM withdrawals of up to 1,000,000 Yen or more than Sh1,000,000”, Mr Ndung’u said in the statement.

The criminals are believed to have found their way into the Japanese motor vehicle industry as a result of the global economic difficulties and cut-throat competition that have translated into low profitability at home.

The dash for market openings outside Japan, is being undermined by sale of stolen vehicles, illegally rebuilt units or even re-modeled vehicles. This tendency, Kenya’s embassy officials said, thrives on the reputation for quality, reasonable price and honesty associated with dealers in Japan.

“Kenyan buyers traditionally understand Japanese car dealers to be trustworthy and reliable,” said Mr Munyori. Embassy officials said all importers should consult JUMVEA before committing any money on vehicle imports.

Reposted from Kenya Embassy Issues Alert on Japan Used Car Fraudsters – Business Daily Africa
George Omondi Senior Reporter
Thursday, January 12 2012 at 20:46

Mozambique Pre-shipment Inspection for Used Vehicles

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We have been advised that NEW PSI Program becomes effective on 3rd November 2011.
Used vehicles (for which subject to PSI) already applied PAF or will be applied PAF by 2nd November, scheduling PSI on/after 3rd November, and applying PAF on/after 3rd November, will be all subjected to New Program.

Note

All Used Vehicles exported to Mozambique will be subject to PSI, and the exporter will be required to pay the inspection cost at $265 (plus 5% Consuption Tax) per a vehicle.

Implementation of the New Law : 19th October 2011
New Program becomes effective on : 3rd November 2011
Inspection Fee : USD $265.00 (plus consumption tax) per vehicle
Payment Terms : Full Advance Payment / Bank Transfer

Upon receipt of inspection request, we will issue to invoice for inspection fee for your payment to us.
(Exchange Rate: Average T/T selling posted rate of previous month will be applied.)

Used Car Import Ban Suspended in Zimbabwe

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Used car import ban suspended

Nicholas Goche

GOVERNMENT has indefinitely suspended the ban on used car imports that are five-years-old and above while the importation of Left-Hand-Drive vehicles will not be allowed from November 1 this year.

The bans are provided for in Statutory Instrument 154 of the Road Traffic Act.
No Left-Hand-Drive vehicle will be allowed into the country from next month.
But those already in the country and those to be imported by October 31 will be allowed to continue plying the country’s roads until they outlive their economic lifespan.
The new arrangement will be provided for in the amended Statutory Instrument to be gaze-tted soon.
Transport, Communications and Infrastructural Development Minister Nicholas Goche yesterday told journalists that after consultation on the proposed ban, Government had decided to lift it until the economy improves.
When the ban was introduced, the minister said Government expected that the economy would have improved and that capacity utilisation by industry by end of 2009 would be around 60 percent.
“We thought the motor industry would have improved as well and producing more vehicles, but we realised that improvement has been slight,” Minister Goche said.
“We had also hoped that banks and other financial institutions would make money available for capitalisation because there is still a liquidity crunch, industry, commerce and individuals don’t have the money.

“Therefore, all these facts were taken into consideration during consultations because the situation hasn’t improved. We have been persuaded to suspend the aspect of the S.I (statutory instrument) to do with the importation of second hand vehicles until there is an improvement of the economy.”
Minister Goche said the Government had also rescinded its earlier decision to force the change of Left-Hand-Drive vehicles to Right-Hand-Drive by December 31, 2015.

“We have made concessions that those Left-Hand-Drive vehicles already in the country remain and live out their economic life.
“From November 1, we are going to restrict the importation of Left-Hand-Drive vehicles whether new or old but for those which are already here, owners won’t be forced to change them to right-hand,” he said.
Government, he said, would continue monitoring the economy to see when it could be viable to effect the ban.

Transport operators and the general public had challenged the promulgation of S.I 154 of the Road Traffic Act.
The Transport Operators Association of Zimbabwe threatened to take legal action against the legality of the ban on LHD vehicles.
TOAZ argued that the vehicles were lawfully permitted in Zimbabwe by the Road Traffic Act 13:11 of the third schedule. The association argued that imported LHD vehicles were cheaper than locally-assembled ones.

During a public hearing convened by Parliament recently, members of the public argued that the ban would make it impossible for the working class to own vehicles.
They said imported vehicles were cheaper and readily available compared to those produced by local car assemblers.
Zimbabwe is among major importers of used Japanese cars in Southern Africa.

Small used cars imported from Japan cost around US$5 000, including duty if directly imported and around US$6 000 if bought from an importer.
Most people cannot afford new imports or new locally-assembled vehicles.

The cheapest locally-assembled brand new car costs over US$20 000.
Used cars from Zimbabwe and South Africa are also expensive as the owners demand more on disposal.

Reposted from Used car import ban suspended – The Herald Online
Lloyd Gumbo Herald Reporter
Wednesday, 05 October 2011 00:00

Zimbabwe Ministers Set to Abandon Planned Vehicle Import Ban

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Goche to scrap car import ban

MINISTERS are set to abandon plans to ban the importation of second hand vehicles older than five years after near universal public objections.
Transport Minister Nicholas Goche will make a statement within days announcing a policy U-turn.

The proposed ban, set to take effect on November 1, has seen a spike in vehicle imports as thousands race to beat the deadline.

But the proposals, which ministers said were aimed at protecting the environment and improving road safety, have been criticised by members of the public, MPs and other senior government officials including Deputy Prime Minister Arthur Mutambara.
Now Goche is ready to pull the plug in a major climbdown, sources said.

“The government has listened to feedback from public consultations and it has become abundantly evident that this ban is very unpopular,” a senior transport ministry official revealed.

Goche has also been privately lobbied by MPs and ministers to abandon the plans – originally proposed by Environment Minister Francis Nhema.

Publicly, officials insist that the deadline, which should have taken effect at the end of March this year before beign pushed back, still stands.
With Zimbabwe’s car manufacturing industry virtually dead, ministers have struggled to justify banning cheap vehicle imports.

The Zimbabwe Revenue Authority [ZIMRA] had also warned that the ban could cost the government millions of dollars in lost revenue. The duty on vehicles over five years old is more than double the price of the car.
ZIMRA is currently clearing over 450 vehicles daily through Plumtree and Beitbridge border posts.

Reposted from Goche to scrap car import ban – New Zimbabwe
Staff Reporter
Tuesday, 27 September 2011 00:00

Zimbabwe Government Still Undecided on Import Ban of Used Cars

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It appears the Zimbabwe Government is still in two minds as to what to do with the pending policy banning the import of used vehicles over 5 years old. It is good that they will take good time up to Oct 31st to deliberate on this policy, but the way it appears, the Minister for Transport is avoiding criticism for now by leaving hope that the policy may change after all.

It is all our hope, the Used Car Exporters and the Zimbabweans, who hope the ban is quashed and used car imports is allowed for the good of the country’s economy and environment, not to mention the safety factor as well.

My last plea to the Minister and the Zimbabwe Government, please consider the people of Zimbabwe when making this decision.

James Hanna
Nichibocars, Japan

For more information, check out our other blog posts
http://blog.nichibocars.com/2011/09/zimbabwe-used-vehicle-import-ban-deadline-to-stay/
http://blog.nichibocars.com/2011/05/zimbabwe-used-car-import-regulation-deferred-to-oct-31st/

Zimbabwe Used vehicle import deadline to stay

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Used vehicle import deadline to stay

GOVERNMENT says there will be no further extension to the October 31 deadline banning the import of vehicles more than five-years-old as sufficient time has been given to all motorists and car dealers.
Transport, Communications and Infrastructural Development Secretary, Mr Partson Mbiriri, yesterday said the statutory instrument giving effect to the regulations was a bitter pill that the country should swallow to avert road carnage.

Addressing journalists on the implications of the regulations, Mr Mbiriri said many lives have been lost due to road carnage. This, he said, prompted Government to take decisive action. “I believe this is one bitter pill we have to take as a nation to avert the menace on the roads. We believe we have given people ample warning and I am not aware of any intention to extend the deadline,” said Mr Mbiriri.

“On left-hand vehicles, it’s controversial but very necessary. We are not inventing the wheel, but it’s standard in many countries.”
Some of the regulations whose deadline end next month include the prohibition of registration of left-hand vehicles, the need for headlamps to be fitted on heavy motor vehicles and the prohibition of registration or use of vehicles whose width exceeds 2,65 metres.

Other regulations such as the need to carry triangle reflectors, jack, spare wheels among others came into effect in July this year, while the Government has allowed left-hand vehicles already in the country to run their full lifespan. Mr Mbiriri said the regulations were in conformity with Sadc harmonisation of Vehicles Standards and came as a result of wide consultation. Angola, said Mr Mbiriri, pegged three years as cut off period for vehicle imports, while South Africa banned imports of second-hand vehicles.
He was asked whether there had been consensus on the provision since they had deferred the effective date to October saying they wanted to allow consultations.

“It became apparent that we are being fairly reasonable. I don’t think it’s possible to have consensus particularly on the importing of vehicles irrespective of the impact it has because self-interest will come into play. We should not shy away from what we see as self evident,” he said.
The motive behind the regulations, said Mr Mbiriri, was to save lives as research had sho-wn that left-hand vehicles caused accidents owing to sideswipes and head-on collisions.

He said it was debatable, which should come first, capacitating the local industry or introducing the regulations to protect the local industry.
“It is kind of a chicken and egg scenario, which one comes first. They can only be cheaper if more of them are being assembled locally. We can’t think of exporting vehicles when we are producing a handful,” he said.

The local motor industry, said Mr Mbiriri, would never flourish as long as the country was allowing imports, a scenario that has seen Zimbabwe become a market for second-hand vehicles from countries making cars.

“In the reform process, my Ministry is, however, aware of the need for a multi-sector and holistic implementational approach which gives total consideration to the country’s economic performance and the prevailing low salary earnings thereof, the inherent road safety considerations, but certainly within the context of regulations and international best practices,” said Mr Mbiriri.

Reposted from Used vehicle import deadline to stay – The Herald Online
Zvamaida Murwira Senior Reporter
Friday, 09 September 2011 02:00

Which Used Car Exporters to Avoid

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One thing that sticks out in all the recent used car export scams is the fact that people who lost their money, lost it to small time operators or little known operators. I remember in the old days, reputation was the big key point when people made decisions to buy a vehicle direct from Japan. It used to be so difficult for any new exporter of used Japanese vehicles to break into a market. It required years of hard fought marketing by the exporter before they could establish a good reputation and sell a good volume of vehicles in a new market. In the old days, only 2 or 3 companies were successful in selling used vehicles from Japan direct to the end-users in large volumes. Nowadays, the end-users put their trust in almost any exporter as long as their prices are the cheapest in Japan.

I’m suggesting that everyone needs to go back to the ways of the old days. You need to be very careful who you are dealing with. Just because some exporters can display unbelievably cheap prices for used vehicles doesn’t mean they should be allowed into a market so easily. You need to make them work very hard for their reputation before you start trusting them. Only genuine used car exporters will tough it out and wait for a year or two before they can make it big-time in a market. If you make it easy for new exporters, then you open the door for anyone to come in and take advantage of you all.

Even if a new-comer exporter’s prices are reasonable, it’s not always going to be a safe deal. One client who responded to my previous article relayed the story of how he sent money to a one-man exporter for a truck which was to be bought at an auction in Japan. This particular exporter went to the trouble of delivering the vehicles to his stockyard from the auctions by himself to save on transport costs. Unfortunately, he smashed the truck that he bought for his client during the delivery. The exporter didn’t have insurance (again, saving on costs), and didn’t have any savings to refund his client (or buy a replacement truck). The exporter apologized to his client but the client still lost all his money.

The major exporters of used Japanese cars, the genuine ones, have all the logistics covered, including insurance. The genuine exporters have been doing this business for more than 20 years and have covered all the risks and logistics properly. We have systems in place from the time when a vehicle is checked at the auction, up till the point where the vehicle is handed over to you. We know more about our clients’ needs and satisfaction, it’s not just about selling cars.

In my 14 years experience in this business I have seen the following happen:

  • vehicles stolen from stockyards in Japan
  • vessels that have sunk losing all the vehicles on board
  • vehicles that were lost by the shipping companies (offloaded at the wrong port by mistake)
  • a vehicle was accidentally dropped into the ocean whilst being offloaded (lift on-lift off vessel)
  • vehicles shipped on CIF basis but no marine insurance coverage actually paid for by the exporter
  • fake exporters taking money for orders but not delivering vehicles
  • vehicles sent to clients with blown engines (and other mechanical problems)

Genuine used car exporters usually have all this covered and won’t leave their clients “holding the bag” when something goes wrong. A genuine exporter is very concerned about their clients’ satisfaction. Genuine used car exporters depend on long-term business and need to protect their reputations. A small exporter or new-comer exporter is only interested in profits. Their smaller margins mean they can’t afford to insure their vehicles or provide security for vehicles or compensate for broken down vehicles.

Ask local clearing agents or your local Embassy in Japan about which exporters are reliable to deal with. Always be suspicious of exporters advertising prices that are very much cheaper than the more established genuine exporters.

Always take into consideration the old saying: “you get what you pay for”.

James Hanna,
Nichibocars,
Nagoya, Japan

Used Japanese Car Market Values

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I’m sure many of you are confused by the differences in market values of certain types of used Japanese vehicles, and their current upward fluctuations. It is true that some of the more reputable used car exporters have increased their prices whilst other relatively unknown exporters are still displaying prices that are very much cheaper than current market prices. This article will provide the facts to answer those questions; which prices are real, where is the current market value, do we wait or do we buy now, and why are some prices unbelievably cheaper than other exporters?

At present, most of the good quality used Japanese vehicles are being sold for at least 25% more than six months ago. The main reason for this is the increase in demand for good quality used Japanese vehicles to replace the damaged or lost vehicles in the earthquake devastated areas in the East of Japan. This demand is expected to stay high for a few more months, and maybe longer.

On top of this, the US$/Yen exchange rate has changed a lot recently also adding to the increase in the US$ price tag. The US$ has also weakened against many other currencies making the value of used vehicles more expensive in terms of local currencies. The biggest problem with foreign exchange rates is that nobody can predict the direction of the rates, so there is a risk of paying more if the exchange rates get worse. But then again, the exchange rates can move in your favour over time. As I mentioned before, no one can predict the direction of the rates.

So the question, do we wait or do we buy now is totally your choice. My suggestion, if you have the funds, and you need a car, then don’t wait and don’t worry what will happen to the values after you purchase. Many people keep thinking that if they wait a little longer they can save more. Many people who think like that are always waiting and never end up buying anything for fear of paying too much. Just be happy with the value you purchase and don’t worry about what happens afterwards. When you think of it, the cheapest used vehicle is “free”, but that is never going to happen.

So what about the difference in prices? Why is it that some exporters can advertise a Toyota Camry for US$1,055 and other exporters are advertising the same model for US$1,800 (or more). The so-called “exporters” on Tradecarview use a computer program for pricing vehicles that they are downloading from the used car auctions. The problem with the computer programs is that they calculates the average market price without taking into account the grade condition, the mileage, and the type of model of the vehicle. For example, a grade “0″ vehicle is usually for accident vehicles sold as is. The prices of these vehicles can be as low as US$200. These vehicles are usually purchased for parts only. Some vehicles that have done over 200,000km are in very poor condition and wouldn’t last more than 6 months overseas. These vehicles can sell up to 50% cheaper than genuine good quality used cars. Genuine exporters are not interested in these vehicles as it does nothing for our reputation. On top, some vehicles are manufactured to different grades, some being more luxurious and hence more expensive to purchase. For example, a 7 seater Toyota Prado sells for a lot more than a 5 seater Toyota Prado. Again, the computer pricing programs being used by these so called “exporters” on Tradecarview don’t take this information into calculation, and hence their prices are nowhere near the actual current market values. They don’t care either since most of these exporters don’t own the vehicles anyway. Once they receive your money they send you what they can afford within the budget received, or they send nothing at all. Their target is to get your money in first, and worry about the supply of a “vehicle” later. They have no desire to fine tune their pricing programs since it works for them to get as much money in as possible.

Unfortunately, many buyers see the “false market values” and even though they don’t trust these so called “exporters”, they can’t help but look for similar models at the same prices on genuine exporters’ sites. They then become confused when they can’t find similar models at these ridiculously cheap prices and start to wonder if they should take a risk with the unknown exporters. You’ll never find ridiculously cheap prices for genuine used vehicles on genuine exporters’ sites. Genuine exporters are in the business for long term, not for a get-quick-rich plan. We need to make profit in order to survive. That’s what business is all about.

Therefore the actual current market value of a genuine good quality used Japanese vehicle can be found by looking at the genuine exporters’ websites. I’m sure you know well who we are, if not, ask some local clearing agents, or your Embassies in Tokyo.

I recently met some people in Papua New Guinea who fell victim to this false market value scam. Most of them ordered a Toyota Camry or Vista from these relatively unknown “exporters” at US$1,055 FOB value and received a totally different vehicle. One person received a Nissan Presea in replacement for his order without his approval. Another person received a Toyota Starlet of much older year and higher mileage to what he ordered. The victims weren’t told what they were receiving until the vessel arrived in port, so they had no choice but to accept what they were given. And of course, some people didn’t even receive a vehicle. They were so disappointed to discover they fell victims to the “false market value” scam.

It’s easy to get caught up in greed looking for the cheapest vehicles available for re-sale to make a big profit. Greed is what makes the scams successful. Some people I know in Mozambique who got caught by the “false market value” scam told me they were going to re-sell the vehicle and double their money once the vehicle arrived. But no vehicles arrived and their money was lost, all of it.

To avoid the scam, do some research on prices with genuine used car exporters. Ask yourself, why would an “exporter” sell a similar model vehicle for almost half the price as the genuine exporters. As a business person, one doesn’t need to lose so much profit by selling a product for half the price as their competitors. It is just as good a sale if the price is a little bit cheaper than other exporters, meaning the extra margin earned is more profit for your business. As a business person, this is how one thinks. As a con artist, you work on peoples’ greed.

Also, as I have always suggested in previous articles, ask for a copy of the Export Certificate and more photos of the vehicles to prove it is genuine. The Export Certificate is going to show you the real year of the model and the last recorded mileage of the vehicle at its last inspection. The Export Certificate is also proof that the exporter actually owns the vehicle. If they don’t own the vehicle they won’t have a copy of the Export Certificate. Only the current owners of the vehicle have the Export Certificate.

My final recommendation to those who have fallen victim to the “false market value” scam, don’t give up and do nothing to retrieve your money. Keep a copy of all your communications with the “exporters” and photos, etc. send the whole files to your Embassy in Tokyo, and let them do whatever is possible to get a refund or compensation for you. Get back at these con-artists and show them they can’t get away with this scam so easily if you have already been caught. Put the pressure on so that your fellow country-man doesn’t get caught too.

A good quality used vehicle purchased direct from Japan is a very good purchase of very good value. Don’t let greed spoil what should be one of your most prudent purchases in life.

James Hanna,
Nichibocars,
Nagoya, Japan