Three important points to remember to successfully import used vehicles from Japan.

 There has recently been a noticeable increase in the number of people importing used vehicles directly from Japan. This rise in popularity has given way to some very common mistakes people make when importing them for the first time, and this article highlights the key points and terms you should be aware of in order to import vehicles successfully from Japan.

1.    The complete cost of import.

Many first-time car importers lack the basic knowledge of the complete cost along with the peripheral costs associated while importing vehicles from Japan, and this is one of the areas where they commonly fall flat.

Let’s start by examining the costs you should bear in mind when importing used vehicles.

The first step you’ll most likely take when importing vehicles is you’ll go to car-exporters’ website. You’ll first of all check the condition of the vehicles, and the cost payable to the exporter.

Cost of the vehicle (FOB):

You will find most companies listing the prices of the vehicles in FOB – this refers to the cost of the vehicle. FOB which is short for Free on Board, represents the complete cost until the vehicle is loaded onto a ship in Japan.

Freight:

The freight charge is for the cost of delivery from Japan to your nearest/selected port (such as Dar es Salaam). It is very commonly calculated by the dimension of the vehicle, m3 = height x width x length, therefore freight for compact cars would be cheap, and trucks and buses more expensive depending on their sizes.

The freight charges can differ widely from one company to another, so please take that into account when comparing prices.

Insurance (Warranty)：

This is another element that differs widely between many companies, because the terms and conditions of what Insurance covers depend on which company you purchase from. Some companies’ insurance is limited to only covering the loss of the vehicle in the event that the ship carrying the vehicle sinks, while other companies offer their own, specifically devised Warranty which additionally covers various break-downs and theft.

Please make sure you check the details of what insurance covers before your purchase.

The total amount payable to the Japanese car exporter is referred to as the CIF price, and we get this price if you combine the cost of the car (FOB) + Freight + Insurance. For example, even if the FOB price of the vehicle is just $100, you might find the CIF price to amount to $2,000 after you combine freight charge and insurance.

We will now take a look at the costs you need to consider after the ship carrying your vehicle has left Japan.

Duty/Tax:

Many first-time car importers purchase vehicles from Japan without the full knowledge of how much tax they must pay in order to register vehicles in their countries.

How much you will have to pay will of course depend on many elements, such as the type of vehicles, engine sizes, and the countries you’re registering the vehicles in, but tax very commonly costs anywhere between 45％～80％ of the CIF price. It is therefore highly advisable that you check with shipping agents or national tax offices to get the most detailed information.

Clearing Fee:

This is the customs fee you need to pay clearing agents at ports or borders.

The payable fee is variable according the size of the vehicles, so please also check with clearing agents for the most detailed information.

Inland Transportation Fee:

The cost of bringing the vehicle home from the port. If you plan to go to the port and drive the vehicle back home yourself, you will need to calculate travel expenses, accommodation, food, fuel among others. You need to consult freight forwarders for their fees if you plan on using their services.

Registration Fee:

The cost of registering, and having a number plate issued for your vehicle.

We have as above explored the complete cost typically associated with importing vehicles from Japan. Please make sure to remember that there are additional costs you need to consider after your payment to the Japanese car exporters, as outlined in the article above.

2.  Reasons behind low prices?

 You may have heard stories of how people found their newly imported vehicles to have been in bad, sub-standard conditions. This seems to quite frequently happen when the price of the vehicle was purchased at an extremely low price.

It is worth going through at this stage in the article, how vehicles are sourced and priced.

Most used-car exporting companies source their vehicles from car auctions. Local Japanese car-dealers source their vehicles from the same auctions too.

Many vehicles are listed, and many car dealers try to outbid each other for the vehicles.

The final bidding prices on those units of the same model and year tend to be roughly in line with one another, but there are many conditions that can influence the prices, such as the condition of the exterior, the engine and the mileage. If a vehicle is found to have malfunctioning engine and very high mileage (e.g. more than 200,000km), the final bidding prices tend to be much lower.

A trusted car exporter might still choose to purchase these kinds of vehicles, but they will thoroughly refurbish these themselves in their garage before putting them out for sale, although this will obviously mark up the prices due to the cost of refurbishment.  They might alternatively choose to list the vehicles as they are, but with the information about the conditions on full show to their customers for the most transparent purchase.  

What we need to be very wary of are those companies that attract their customers with very low prices, while hiding the information about the bad condition of the vehicles. If the purchase is being done under the full knowledge of the problem points of the vehicles, it shouldn’t leave any sour tastes in anyone’s mouths, but there are some companies that purposefully don’t show these points to their customers, or rewind the mileage before selling the units.

The prevailing point is that most companies source their vehicles from auctions, so there will be reasons if one company is selling vehicles at well below the market prices.   It is therefore very advisable to approach with caution to any offers that seem to be too good to be true.

　

3. Receiving the vehicle safely at the port.

There have also been some unfortunate incidents of some people damaging the vehicles after their arrival at the port, through not handling them properly.

It is worth noting at this point that, it is standard practice to leave only the minimum level of engine oil and gasoline in the vehicles before loading them into vessels. They do this to limit the risks of explosion during transit.

Consequently, it is advisable to check the level of engine oil when you receive the vehicles at the port, as too little engine oil can lead to over-heating, extensive engine damage and a huge repair bill. It is also wise to leave the engine running on idle for 10 to 30 minutes before setting off for the first time, because the vehicles would have been immobile for around four weeks during transit, and they need time to warm up to avoid unnecessary break-downs.

Please don’t be too alarmed or concerned if the engine doesn’t start on ignition at first. It could very well be that it is just flat (not dead) after such a long time in transit, and all it will likely need is a simple recharge.

 

You could save yourself many unnecessary troubles on your vehicles simply by passing on your requests to your clearing agents or freight forwards, outlining the three main points as discussed above.

If you’re thinking of importing a vehicle from Japan in the near future, you might like to consider purchasing from the used Japanese vehicle website CardealPage, which is rapidly gaining recognition and popularity.

CardealPage has many remarkable features that make it stand out from other sites.

1.    You can purchase vehicles offered by many famous car exporters.

On CardealPage, you will find thousands of vehicles listed by several big-name car exporters, so you really shouldn’t have any troubles finding the right car for yourself.   You can see every vehicle listed in its all-inclusive CIF price, so price comparison becomes easy and extremely convenient.

2. You can purchase vehicles directly from local car dealers in Japan.

CardealPage also offers you opportunities to purchase directly from local car dealers in Japan, with CardealPage acting as agents.

Drivers in Japan sell their vehicles to local car dealers, these vehicles are then listed on auctions, and they are then sold to the winning bids by various car exporters.   However, some local car dealers choose to list them on CardealPage instead of putting them out on auction, so you could be driving a vehicle that was being driven in Japan only until yesterday. 

So why not go to CardealPage to choose your vehicle? It is packed with exciting features that aren’t found on any other sites, and your dream car can be just a few clicks away!