How Come Japan's Car Auctions Beat Exporter's Stock Every Single Time?
If you have done any amount of research into getting cars from Japan then you will surely have come across these two models.
There are the Japanese car exporters who have used cars in their yards ready for people to purchase. Then there are the other type of exporters that get vehicles straight from the Japanese car auctions. Obviously, there are exporters that have both stock cars and also buy from the auctions, but even these companies usually have their focus on one of these sources rather than the other.
So which is right for you? This is exactly what I am going to look at below.
By focusing on how the Japanese car auctions are different, I expect the difference between these two means of getting cars from Japan will become clear.
Before we go any further, let's be clear precisely what we are talking about here. I am certainly not talking about a traditional auction where all the bidders are together in one room before an auctioneer with a gavel. However, these car auctions are similarly in no sense like the auction format popularized by online corporations such as eBay that can take days to run their course.
The car auctions in Japan are a unique blend of the speed of a traditional auction - accelerated further using modern technology - with the freedom from geographical constraints that the Internet provides.
Bidders could be present at the auction itself, or they may be far away in a completely different area of Japan. Also the bidding is incredibly fast, with each person bidding either making use of a joystick-type device or a PC mouse to place bids.
Cars are sold every few seconds - and a large auction such as USS Tokyo can have as many as 10 "lanes running at the same time in each of which bidders are bidding on multiple vehicles.
Now you are clear as to how these Japanese car auctions operate, let's move right on to why you should be interested in getting together with a car exporter who will get your vehicles from them.
Assuming you have been paying attention at all, you should have gained some notion of the incredible scale and speed of these auctions. Remember cars are sold each day six days a week and these cars are being sold every few seconds throughout Japan.
So, as I am sure you have by now figured out, we are talking about 10.000s of used vehicles being sold daily.
So, what does this mean for you as the potential buyer? Well, it means a gigantic variety of options. Why is choice important? Well you get a number of benefits.
First, it means you are more likely to get your hands on the perfect car.
Even a car exporter with a large amount of stock may have just a thousand or so cars in stock. Of these, maybe 20 are the model you are looking for. But then try to narrow down further to a particular year, a certain mileage, or an individual color, and you will quickly find that it is almost impossible to find this precise car in this company's stock. You are much more likely to find it in the auctions where the selection is bigger.
Something else about choice is that it gives you the chance to skim off the best cars at the lowest prices. This is especially valuable if you are buying in bulk.
Just think about it: Say you are after a used car particular year that has up to a certain number of kilometers on the odometer. And we shall suppose that there are typically between 10 and 20 cars in the auctions each day that match these requirements. You also know, that cars of these specifications usually go for 345,000 Yen to 515,000 Yen.
So, what do you do? Simple: You bid on all these cars each day, but you keep your maximum bid at, say, 380,000 Yen. This is a low bid, but it will have a possibility of the occasional successful result.
It is sufficient for you that you get the lowest price ones that reach your specifications - and this is how the selection at the auctions can help you to achieve it.
Each day you may lodge ten to twenty bids and still end up with just one car bought. But, there lies the beauty of this method as every car you buy will be in the lowest 5 to 10% of the price range.
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