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Beware of Unknown Exporters on the Net

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Every month now, the list of fraud cases concerning used Japanese vehicle purchases via the internet is growing. Despite the efforts of the local Government, Embassies, and warnings from genuine used car exporters, there is still a large number of innocent buyers out there for the taking by fraudsters.

Firstly, we genuine exporters, understand the desire to buy a cheap used vehicle from Japan. There are so many people who can’t wait till the have the right amount of money saved to get their first car. There are also those who see a business opportunity to buy a very cheap vehicle, which is displayed for half the price of other exporters, and sell for double the price to get rich quick. Whatever the reason, be it lack of patience or greed, we tend to miss the obvious signs that would otherwise make us very wary when buying a used Japanese vehicle, or any product for that matter, via the internet. This sudden urge to have a vehicle now before you can afford the genuine vehicles at genuine prices is creating an image of easy targets for the fraudsters. The more you fall for cheap, cheap vehicles, the more the image spreads to other countries where con-men find new ways to take your money. The solution is simple, if you can’t afford the genuine vehicles from genuine exporters, then don’t buy. Be patient, save more, and play it safe.

In the old days when volumes of import used Japanese vehicles from Japan were low, most buyers would ask several questions of the exporter to confirm if they were genuine or not. Many buyers would check with the local Embassy in Japan about the exporter before committing their hard-earned savings and taking the risk of buying a vehicle direct from Japan. The sad fact these days, is many of you don’t ask these questions anymore. Our judgements are clouded from the shadows of the Big Dollar Signs in front of our eyes. We beg you all, to take a deep breath, think about the risk, and check with your local embassy in Japan about the exporter you wish to buy a vehicle from. It only takes one day to get a reply and your vehicle should still be safe for purchase. If you already know a list of genuine exporters then stick with them.

It’s not like the old days when you could trust 95% of the exporters advertising on the net. These days, it’s so simple to set up a website with a false name, copy photos and details of cars from the auction websites, and advertise cheaply to make a lot of money. There are quite a few people in Japan desperate to make money, and like every other country around the world, Japan has its share of con-men too. You can’t trust every Japanese person just because there was an image of Trust amongst all Japanese people in the past. With the crippling economy here in Japan, this trust factor has whittled away. We are not as bad as most other countries, but we do have our share of bad people here and you need to keep your wits about you when you surf the internet for the “best vehicle at the cheapest price” available (no such thing actually since the owners of such vehicles know they can get premium price).

You need to understand that genuine vehicles have genuine prices. Just because you can’t afford a good quality used Japanese vehicle from the genuine exporters doesn’t mean you have to buy the cheapest vehicle from an exporter you never heard of. You need to display better control and patience. You buy your vehicle when you can afford it, not when someone says they can sell you one now to suit your budget. It’s a classic con-man’s trick, working on your greed and zealous desire to own a car now.

Beware of unknown exporters. If they haven’t advertised in your local newspaper, or your local Embassy doesn’t know them or recommend them, then stay away from buying vehicles from them. It’s your hard-earned money that you risk, and you need to make sure for certain. You’ll only be branded the fool who wasn’t wise enough to take the simple precautions of checking the exporter before committing your money.

We genuine exporters worked hard to gain the trust of our clients, so why let these con-men take your money so easily. Before you dash to the banks to lose your money, take a breath, sit back, and ask yourself what you know about this exporter. Would you send me $5,000 so I can send you $42 million dollars? Of course not. Most of us know about the Nigerian scams now, and we know the money is not there. It’s the same with used car fraudsters advertising prices that are about half the price or less than genuine used car exporters’ prices. It’s a scam regardless how cheap the value of the car is, the con-men make 100% profit of whatever money you send.

Finally, beware of cheap vehicles that don’t have gradings for condition. There are some companies selling accident-damaged vehicles and rust-corroded vehicles for very cheap prices. They make you sign a no-claim form at the time of purchase so that you can’t legally claim for a refund when you receive a vehicle that is broken down. Accident-damaged vehicles can be very dangerous and put you and your family’s life in danger. Are you willing to risk your life and your precious family’s life in danger? Is owning any vehicle, regardless of its safety, worth the risk of killing your family? These exporters are also setting up a scenario where your Government will put a ban on import Japanese used vehicles because your country is now becoming a dumping ground for non-roadworthy vehicles. You’ll be directly responsible for making it impossible for other countrymen to buy their good quality used vehicles from the internet in the future, you’ll be responsible for making your roads dangerous, you’ll be responsible for killing innocent people, all because you can’t wait to buy a genuine, good quality, used Japanese vehicle.

There were over 1,000 claims with the local Embassies in Japan last year. There were only 4 fraud companies caught last year. None of those con-men caught had any money saved to make a refund of stolen money.

This is what you face when you risk your money on the net, so you ought to take a breath, sit back, and consider who you are trusting your money with.

James Hanna
Nichibocars, Japan

Zambia wins against Ivory Coast (8-7)

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Zambia conjured up a shock when they toppled star-studded Ivory Coast 8-7 in a penalty shoot-out to claim their first ever Africa Cup of Nations title on Sunday.

With the sides goalless after extra time Zambia’s Stoppila Sunzu converted the magic spot kick after Arsenal striker Gervinho missed for the Elephants.

The result meant misery for hot favourites Ivory Coast, who failed to claim the title despite not conceding a goal throughout the entire competition until Sunday’s shootout.

It also revived memories for Didier Drogba, who missed a penalty in the second half of normal time, and company of their 2006 penalty shoot out final defeat to Egypt in Cairo.

Zambia, motivated by the memory of the 1993 national team wiped out in a plane crash off the Libreville coast, went into the 2012 climax as outsiders.

But they covered themselves with glory, hassling and harrowing their star-studded rivals all the way to the penalty shoot-out, and then holding their nerve to prevail in the dramatic, barely watchable denouement.

Ivory Coast coach Francois Zahoui fielded the same side that saw off Mali 1-0 in the semi-final.

His Zambian counterpart, Herve Renard, recalled striker Emmanuel Mayuka, after his starring role in getting the decisive goal in the 1-0 last four defeat over Ghana.

He joined captain Christopher Katongo in spearheading the Chipolopolo’s (Copper Bullets) attack.

Russian-based midfielder Chisamba Lungu came in for Francis Kasonde. A minute of silence was observed before kick-off in memory of the 74 people killed in the Port Said stadium slaughter in Egypt.

The game was only seconds old when Zambia almost took a shock lead, with keeper Boubacar Barry doing well to save Nathan Sinkala’s close range shot off Katongo’s quick pass from a Rainford Kalaba corner.

Renard was forced into an unscripted change when defender Joseph Musonda limped off in tears on 11 minutes – Nyambe Mulenga took his place.

A shaky start by Ivory Coast gave Zambia hope of an upset and Kalaba’s 30m freekick wasn’t far away after taking a deflection off Cheik Tiote’s leg.

The Elephants put together their best passage of play approaching the half hour mark, a neat Drogba backheel setting up Yaya Toure only for the Manchester City midfielder’s angled shot to go wide of the far post.

A hugely promising first half from Zambia had the Elephants’ defence, marshalled by Kolo Toure, under more pressure than they would have wanted, with Katongo leading from the front.

The second half began with a deathly hush descending on the stadium – the final in desperate need of the kiss of life in the guise of a goal.

And on 72 minutes one should have come after Ivory Coast were awarded a penalty when Issac Chansa and Mulenga barged into Gervinho.

Drogba stepped up but his woeful attempt went soaring into the night sky, even though he appeared to divert blame to the pitch, glaring at the spot.

This was his second miss from the spot after he had a penalty saved in the quarter-final win over Equatorial Guinea, where he went on to score twice.

One minute later Max Gradel’s shot from the box had Zambia keeper Kennedy Mweene beaten, but it rolled wide of the far post.

In the 95th minute, substitute Felix Katongo crossed from the right for his brother Christopher with only Barry’s toe diverting the goalbound ball off the near post.

There was high drama once the penalty shoot out got underway, with Kolo Toure missing the Ivorians seventh penalty, but Zambia’s Kalaba also missing his to leave the sides still inseparable.

Then after Gervinho failed in his attempt it was left to Sunzu, the defender who plays his club football in the Democratic Republic of Congo, to give Zambia a historic first title, and consign Ivory Coast to another wretched defeat.

Reposted from Zambia hold nerve to beat Ivory Coast, take title – Confederation of Africa Football

Statistics for Used Japanese Vehicle Imports

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RoRo Shipping Vessel

Japanese Vehicle Exports

The actual statistics for volumes of used car imports into Zambia is not so clear as certain records seemed to be designed to assist with whatever purpose the statistics are going to be used for. The following story can only give a rough estimate of actual volumes of used car imports flowing into Zambia.

Most used car vehicles are imported from Japan, however there are a small volume of used vehicles being imported from countries such as Singapore, United Arab Emirates (Dubai), England (U.K.), and U.S.A. All these vehicles are imported via Dar-Es-Salaam or Durban ports. The reason for uncertainty of actual volumes of import vehicles available is because many vehicles are custom cleared in Japan with final destination as Dar-Es-Salaam or Durban. The actual destination is only confirmed after the exporter sells the vehicles from the bonded yards at these ports however it is not necessary to advise Japanese Customs afterwards. We assume that 30% of the volumes of used vehicles destined for Durban port or Dar-Es-Salaam port are bound for Zambia. There is a very small volume of vehicles beig shipped via Maputo and Walvis Bay, but the figures are insignificant at this stage.

There is also a large volume of vehicles that are shipped direct to Zambia using shipping terms CIF Lusaka. These vehicles are either transported by container from Japan all the way into Zambia, or cleared at the port and either driven or carried on a truck to Zambia. This volume has been fast increasing and becoming a very convenient service for many Zambians. The figures for the last few years of the total number of used Japanese vehicles being imported into Zambia are as follows:

2009 – 14,441 per year (1,203/mth average)
2010 – 26,356 per year (2,196/mth average)
2011 – 32,519 per year (2,956/mth average) (to November only)

A very interesting statistic amongst the above figures is the rapid increase for used vehicles delivered direct to Zambia (CIF Lusaka). The actual figure has been increasing from 1,850 vehicles in 2009, to 3,861 vehicles in 2010, to 8,708 vehicles just up to Nov 2011. There is an obvious need for the clients to have their vehicles delivered all the way to Lusaka and avoid the hassle of arranging clearance in Dar-Es-Salaam ports themselves.The figure has more than quadrupled in just under 3 years.

Compared to other countries, Zambia’s volumes are very strong and shows that the economy is improving better as more affordable, good quality used Japanese vehicles make their way into this market.

Let’s keep the economy strong and make 2012 a bigger year for used car imports, both for personal and commercial use.

Click for more information of Japanese car export statistics.

James Hanna
Nichibocars, Japan

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

Beware : New Scam Importing Used Japanese Cars

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There is a new type of scam going on to deceive individuals into buying inferior quality used Japanese vehicles, some in dangerous conditions. Although their vehicles are very cheap, in many cases, the vehicles are usually sold as accident damaged vehicles. Whilst I can’t reveal the actual name of the website, I hope you can determine the site yourselves.

This particular website claims to have over 3,000 vehicles in stock. On careful examination, I found the majority of the vehicles have been downloaded from the auction websites and are not actual stock of that company. I’ve stated this next suggestion many times in previous articles: ask the exporter for more photos of the vehicle if they are only showing 2 or 3 photos of that vehicle. I placed an order for such a vehicle and asked 5 times for the extra photos but never received them. Also ask for the Export Certificate to be scanned and sent by fax. Again, I asked for this certificate several times but didn’t receive it before this company stopped communications.

This company stocks a few hundred vehicles under US$1,000 FOB (not including freight and insurance) which is quite a large number to sell for such a cheap value. On closer inspection, I found the vehicles are mostly accident damaged vehicles which have been cheaply repaired or not repaired at all. I noticed there is no grading of the vehicles displayed on their website. I asked why they don’t display the condition grades of each vehicle on their site, but they didn’t answer the question. Most genuine used car exporters will display the condition grades on their website. Grades 3.5 or grade 4 vehicles are usually in very good condition. Accident damaged vehicles are graded zero and most genuine exporters will avoid purchasing these vehicles out of safety concerns for their overseas clients. You need to ask yourself, are you prepared to risk your life and your family’s life driving in an accident damaged vehicle? How cheap do you value your family’s life?

I also wondered how a company selling this many vehicles under US$1,000 FOB can make a decent profit to survive in business. In reality, the profit made on these cheap vehicles is so small that it usually is not enough to cover other business expenses such as salaries, utilities, rent, etc. You may ask: so how does that concern you? Some of you may know of smaller exporters that you dealt with, receiving very cheap vehicles at first, then your final order may have resulted in loss of your money because that smaller company went bankrupt and took your money without shipping a vehicle. It happens this way because eventually these companies run out of money and become desperate enough to steal overseas clients’ money. You need to be cautious of this particular company’s practice of selling vehicles too cheap. They could be running their business at a loss which isn’t good business sense. Again, you have to ask yourself, are you prepared to risk your hard earned savings on a cheap vehicle that may not be roadworthy or even be delivered?

Finally, I requested an invoice from this company and they only showed one amount for the CIF value. There was no breakdown. It took several requests before they finally sent me the breakdown of the charges. I found that they charge US$350 for inspection fees where most other exporters usually charge around US$200. They also charged a very high freight rate compared to other exporters. I found the freight rates in some cases are US$500 more expensive than some genuine exporters’ websites. I also asked for a copy of their marine insurance policy to confirm if they actually do insure their vehicles for shipment. Again, there was no response to my several requests and communications stopped.

It appears this company’s sole objective in this business is to cheat customers in as many ways possible. I contacted the inspection company to confirm if this company actually sends its vehicles for inspections. To my surprise, the inspection company confirmed the vehicles are inspected, but many of them fail due to non-roadworthiness. This means they need to replace the vehicle as it can’t be shipped to you with a genuine roadworthy certificate. For the vehicles that were not passed and not shipped, this company re-sells them to other clients in countries where inspections are not required (e.g. Zimbabwe or Malawi). The alternative for the company is to supply another vehicle and submit it for another inspection (at their own cost). The problem is the vehicle of your choice is now gone and you have to settle for another vehicle that may not pass the inspection again. All these losses at the inspection facilities will surely weigh heavily onto this exporter eventually.

I have already received phone calls from the local Embassies about this exporter. The claims are starting to pile up from Zambians who felt they were cheated when the vehicle arrived (or didn’t even make it to Nakonde due to breakdown. The problem is, the exporter makes you sign a no-claim form before the sale is completed. That’s their defense against law suits and so the Embassies hands are tied as a result. I asked if I could reserve the right to claim should the vehicle I receive not be of roadworthy standard. This company avoided my question until finally they stopped communications. They realized I wasn’t going to let them cheat me. You too can ask them to exempt you from signing the claim form before you commit any money. If enough overseas clients ask for this exemption then perhaps this exporter will review the way they do business.

My whole philosophy on used car exports to Africa is based on supplying good quality used vehicles to improve road safety and your local economy, not just for making a profit. It’s got to be a two-way thing for this business. We need to help you to help ourselves.

So be careful, don’t be backward.

Driving in Lusaka (part 4)

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Road manners on the whole are quite good in Zambia. However, there are the few that drive in a very selfish manner that adds to the traffic chaos. Just remember, there are traffic rules for everyone to obey for safer and better driving. For those few that want to jump the queues, it is very rude and creates more traffic jams as a result. You may get through a little faster than the other drivers, but the other drives want to get to their destinations just as fast. If we all drove without proper manners then we would just drive our vehicles all over the roads, footpaths, through people’s houses, and wherever possible just because we don’t care about anyone else. Rude driving in Lusaka is not smart, not clever, and definitely not polite to others. It’s just plain rude. If you are a rude person then so be it. But expect to be treated as a rude person who lives with no friends.

Driving in Lusaka (part 3)

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It seems the government is still slow in developing the road network in Lusaka. I hope they don’t ignore this problem too long. The roundabouts are a shambles in Lusaka and probably would be best doing away with them. Some roads need to be upgraded immediately, and some roads need to be closed as they add to more traffic chaos. The opening of more shopping malls should alleviate some of the traffic problems in Cairo Road, but more improvement in the road network is urgently required around the city areas and shopping malls. I sincerely hope the local government tackles this problem without further delay. It is in the interest of safer roads, more ecological transport systems, and more efficient and economic business logistics.

Driving in Lusaka (part 2)

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Lock your car doors when in Zambia. My good friend advised me from the beginning to lock my car doors before driving off. I took this advice seriously and everyday, without fail, I locked the car doors. I didn’t realize how good this advice was until I was stuck in traffic in the markets area on Lumumba Road one particular day. Two youths approached my car and tried to open the doors. The doors were locked but they kept lifting the door handles in the hope the doors would open or perhaps I would unlock the doors unwittingly. It took me a few seconds to realize they wanted to rob me. I simply remained calm and waited for them to give up and go away. I was double lucky in that all my windows were up at the time. From that time on, I only drove with the windows slightly down but not enough for anyone to put their hands inside. I also heard, that some people who had their doors locked, had panicked and unlocked the doors allowing the people to open the doors and rob them. The trick is not to panic. Remain calm, see if you can drive your vehicle out of its spot, and sound the horn to scare them off. I also thought of reaching for the glove box pretending to pull out an imaginary pistol to scare them away. But whatever you do, keep your doors locked and don’t panic. They will go away eventually.

Driving in Lusaka (part 1)

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I had the pleasure of spending 4 glorious weeks in Zambia in October and during that time, I leased a Honda CR-V 4WD vehicle.

I stayed in Makeni and traveled along the 4km stretch of road that was being upgraded (I wonder if they finished it by now). The 4WD vehicle came in handy as that road in Makeni deteriorated with the early rains mid-October. As I traveled that road twice a day, I couldn’t help wondering why so many people drove their vehicles so slowly over the bumpy roads. I would have thought most Zambians know by now that you get a smoother ride if you drive your vehicle slightly faster over the bumps. It also means less wear and tear on your suspensions. Of course some bumps are too deep or high to travel over at slightly faster speeds, so discretion is necessary on these type of roads. But for the most part of that road, it is better to drive your vehicles at a slightly faster speed over the bumps to get a smoother ride.