The Japanese Auto Auctions history began in 1967, when Toyota Motor Corporation first conducted auto auction. The rapid economic growth and production of vehicles created a massive secondary market. As a result, there was a need to manage increasing sales in the second hand cars market. Initially conducted by hand-signal, the selling process an auction process was time consuming and not efficient due to human factors.
Initially targeting local market, used auto auctions began to attract attention from foreign markets as well. In early 1970s the first exports of Japanese used cars began with the establishment of export oriented companies. In September 1978, with the development of computer technology, Fujitsu and Kiden companies introduced the first auction equipment and software. The transition to latest technology created “Internet Live” service-remote auction participation, an accurate evaluation system with vehicle grading system and reducing the trading session time to few seconds only.
Presently Japanese Auto Auctions represent a complete auto industry in itself with a network of nationwide halls covering over 150 locations. The major vehicle auctions in Japan are: USS Auto Auction, AUCNET, CAA, HAA, HONDA, TAA, JAA, BAYUC and JU are located near main ports of Japan in Osaka, Kobe, Nagoya and Kawasaki.
For the convenience of buyers and sellers 3 major types of auctions were developed
Real time Auctions — are major type of auctions, where real-time bidding is done either on-site or online from any part of Japan. The trading session is hold on specific day of the week.
Tender Lease Auctions — Usually held by small auction halls with a very simple system of offering 1 time bid only. The trading is conducted by selecting highest offered bid.
Fixed price Auctions — Nationwide cars can be bought online by single click or calling an auction house.
Considering the type and numbers of vehicles traded, auction inspection sheets are used to evaluate the market price and condition of the vehicles over auction systems. An efficient combination of local marine, inland transportation and storage infrastructures, made possible to delivery on time any car from any part of Japan to loading ports.
The key advantages of buying vehicles from auto auctions are
Transparency — The general public or even car dealers without special license cannot access the auctions. Local dealers, exporters and imports with good reputation and special permission are allowed to participate at auto auctions. This is done to avoid any price-fixing fraud actions and cheating at any stage of vehicles inspection and exhibition processes. Moreover, auction hall does not depend on sellers or buyers, since it reserves its own commissions regardless of the car was sold or not, which gives confidence to all participants.
Market price based on the quality — Given the number of vehicles traded, there is a massive market price statistic for each vehicle based on the year, mileage, condition and even color. The common quality grading makes it even easier to assess the possible market price before bidding.
Great selection of vehicles — Often called “Used Car Auto Auctions”- auction hall is an excellent place to search for brand new or near brand new vehicles too. The choice of cars is not only limited to Japanese domestic market only, but there is a plenty of Left hand drive (LHD) and Right hand drive (RHD) versions of European, American and Korean cars. The type of vehicles traded is impressive: passenger, JDM performance, JDM classic, European vintage , trucks, buses, vans, pick-ups and construction machinery.