Tag Archives: used japanese cars

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

Vehicle population rises by 24,000

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*Toyota leads new registrations
The number of privately-owned and government vehicles rose by more than 24,000 in 2009 to 280,600, with Japanese giant, Toyota emerging the vehicle brand of choice among first-time registrations, it has been learnt.

According to a Transport Communications Unit’s estimates released this week, the number of passenger cars rose by 14,551, contributing the most to the overall increase in the vehicle population. Passenger cars continued their dominance in vehicle categories, accounting for nearly half of all vehicles on Botswana’s roads, followed in popularity by light duty vehicles.

The Report also indicates that 33,325 privately owned first registrations were recorded at various licensing centres countrywide in 2009, suggesting robust purchases of vehicles by Botswana . Together with the 33,413 first registrations recorded the previous year, the number of new vehicles in 2009 ranks among the highest of the decade. But Transport Unit officials were quick to explain the apparent anomaly between high first registrations of private vehicles in 2009 and the comparatively lower rise in the national vehicle population.

“The national vehicle population is calculated looking at both renewals and first registrations, while first registrations are for only the period under review. Therefore, while there were 33,000 or so first registrations of private vehicles, other vehicles in the national population were not renewed during the period for various reasons, including accidents,” explained an official. “As a result, some vehicles drop out of the national population and others join in as shown by the first registrations.”

The report also shows that Toyota was most popular with the new vehicle owners, accounting in 2009 for 40.1 percent of the 33,325 first registrations, followed by Nissan, Volkswagen and Mazda in that order. Mitsubishi and Ford anchor the top six most popular vehicle types.

“Toyota’s popularity is historical, from boasting the first dealerships and service centres, to the aggressive yesteryear marketing of their various brands. Today, besides the locally manufactured Toyotas, this brand’s popularity is anchored by the Asian imports which are overwhelmingly skewed in its favour,” said Tawanda Nyika, a sales agent with a local car dealership.

Other statistics indicate that while the number of private vehicles on the roads increased by 10.2 percent to 270,000 between 2008 and 2009, the government fleet declined by 981 vehicles to 9,779 over the same period. In the government fleet, data suggests the sharpest declines were witnessed in the number of light duty vehicles, which dropped by 1,195 to 4,595 between 2008 and 2009. The number of government trucks fell by 221, while buses also realised reductions.

The Transport Unit advised that reductions in the size of the government fleet could be related to increases in private-owned vehicles, as the former are sold off to members of the public at regular auctions.

“These include below carrying value, accident-damaged and other similarly affected vehicles, where it is in the public interest to auction off the vehicle,” the official said.

Reposted from Mmegi Online
MBONGENI MGUNI
Friday July 29, 2011

Zimbabwe Used Car Import Regulation – Deferred to Oct 31st

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Minister Nicholas Goche

Used car import deadline clarified

Used car import deadline clarified

By Tendai Mugabe

GOVERNMENT has cleared confusion over the deadline for importing second-hand vehicles aged five years and above, saying the cut-off date is October 31 as stated in the statutory instrument gazetted early last month, not June 30.
There had been confusion over the cut-off date with Tran-sport, Communication and Infrastructure Development Permanent Secretary Mr Partson Mbiriri insisting it was June 30 while the statutory instrument gazetted early last month indicated October 31.

Mr Mbiriri, on three occasions since last month, reiterated that the cut-off date remained June 30.
However, Transport, Communication and Infrastructure Development Minister Nicholas Goche yesterday clarified the deadline, in a statement, saying no one would be barred from importing vehicles, which were five-years-old or more until consultations with relevant stakeholders were completed.

“I want to advise all concerned that no one will be barred from importing vehicles which are more than five-years-old until the consultative process is completed.

“Therefore, the effective date restricting the importation of second-hand vehicles into the country remains 31st October by which date the consultative process would have been completed to which my office will give further direction,” he said.

The October 31 deadline was announced in the Govern-ment Gazette published on April 1 2011.

But Mr Mbiriri insisted the deadline was June 30.

Recently, Mr Mbiriri said the Government was only considering extending the age limit of vehicles to be imported and the October 31 deadline was only for registration of the vehicles.

After noting the confusion and panic by the public, Minister Goche said: “Let me assure the transport sector and the public in general that my ministry is seriously looking into your concerns particularly as they relate to Section 10 and 65, which dealt with the left-hand drive and importation of any vehicle that is five years and above.” As the June 30
deadline approached, panic and confusion gripped car dealers and individuals who were rushing to beat the deadline as asserted by Mr Mbiriri.

Over the past weeks congestion was common at the Beitbridge Border Post as Zimbabwe Revenue Authority workers struggled to clear the imports.

The banning of second-hand vehicles followed Statutory Instrument 154 on Road Traffic (Construction, Equipment and Use) Regulations, issued in September last year.

The regulations among other measures sought to ban the importation of left-hand drive vehicles by 2015.
Section 65 of SI reads: “No person shall import any motor vehicle for registration and use on any road in Zimbabwe if the year of manufacture from the country of origin is more than five years.”

Minister Goche said the regulations were meant to consolidate various pieces of amendments that have been made to the regulations and to harmonise the road safety standards adopted by Sadc member states.

He said extension of the deadline from March 31 2011 to October 31 2011 was designed to afford Government enough time to consider appeals from the public.

“During the period before the publication of SI 154/2010 and the period after the publication, my office received numerous appeals from the transport sector players and the public in general in order to give adequate consideration to the appeals without compromising the integrity of our systems, through which these regulations had gone through and approved.

“I found it prudent to postpone the effective dates of the various sections cited above through the publication of Statutory Instrument 44 0f 2011 which Statutory Instrument was published in the Government Gazette of 1st April 2011,” he said.

On Thursday the Transport Operators’ Association of Zimbabwe challenged Government to reconsider the ban of left hand vehicles from the country’s roads by December 31 2015 in terms of the Sadc protocol on transport as agreed by member states.

The association said the early ban of October 31 2011 would result in the total collapse of the heavy transport sector in Zimbabwe.

Source:
The Zimbabwe Herald
Friday, 27 May 2011 22:36
(Link to Article)