The Japanese car industry is very unique. Unlike many countries around the world, a Japanese vehicle is driven for about 10 years only. Most Japanese prefer to buy the latest model to keep up with new fashion, so they quite often change their vehicles every 5 or 7 or 9 years. A used vehicle in Japan does not have much appeal as most Japanese prefer to buy brand new vehicles. Therefore a used car dealer can only sell his stock at cheap prices in order to attract buyers, and some stock despite being only 7 or 9 years old just won't sell in Japan. Therefore a lot of these vehicles make their way to the auctions for sale to exporters who can sell them to overseas clients.
There are over 72 million vehicles registered on the roads in Japan at any one time. There are over six million vehicles traded each year. Of this figure, just over 1 million used vehicles are exported from Japan. The rest are either sold in the domestic market, or scrapped for recycling. What a waste to scrap a vehicle that is only 10 years old. That is the main reason the used Japanese vehicle export industry started around 1988. Initially, a small group of wise people realised it was better to export the used vehicles to countries where the life of the vehicle could last for another 10 to 20 years. In other words, a complete recycle of the used vehicle.
A Japanese vehicle must be re-registered after the first three years of purchase, then every two years after that. The cost of re-registration is approx. US$1,500. To most Japanese, this cost is a waste when the vehicle is 7 or 9 years old, so a new vehicle is preferred over registration as a result. Since it is difficult to re-sell a 7 or 9 year old vehicle in Japan, the exporters can pick them up for very cheap prices. The cars are then sold at cheap prices to overseas buyers via the internet, or in bonded yards set up in different countries.
So why do the used Japanese cars have few kilometres? Most Japanese people travel to work by train due to a very efficient rail system in Japan. One can set their watch by the train timetables because they are so efficient. Also, most Japanese people work very late hours often resulting in returning home around midnight. Therefore most Japanese only get to drive their vehicles on weekends. This is why Japanese vehicles have low kilometres. A Japanese passenger vehicle travels an average of 8,000km a year. I'm sure many of you travel this much in one month. On top of this, the roads in Japan are in great condition and very smooth. The kilometres travelled in Japan are called "soft kilometres". Compare a used Japanese vehicle that has travelled 50,000km in Japan to one that has travelled the same distance in PNG. The difference is obvious. Also, other reasons why train travel is preferred to a car are the high cost of road tolls, very few car parks in major cities, high cost of parking fees, and 72 million vehicles on the road causing huge traffic jams.
Why are used Japanese cars in such great condition? Japanese look after their vehicles very well. It is said that the Japanese male treats his car better than his wife (I wouldn't say that for fear of reprisal from my wife). When the Japanese buy a new car they are locked into a maintenance program which ensures the vehicle is serviced every year and parts and repairs are guaranteed. The new car dealers send out letters every year to remind the drivers to bring their vehicles in for a service, whether it needs it or not. It's all covered under the maintenance program so they don't have to pay any money until registration time. One oftens sees Japanese people spending a lot of time washing and waxing their vehicles on the weekend. They are also meticulous about the inside of the ir vehicle in many cases adding accessories to provide a comfortable drive.
How Easy is it to Import my Own Vehicle Direct?
Importing your own vehicle direct from Japan is as easy as learning the ABC. Check different exporters' websites for the best car that suits your budget and needs. Many exporters have their stock for free viewing on the internet. Some exporters allow you to submit your order on-line, others request you to send them your details for invoicing purposes. However be aware of bogus companies. It is best to deal with companies that have a good track record. Sometimes a fantastic deal may seem to great to believe. These are the exporters to be very careful of as in many cases there are no companies and no stock. Just a guy with amobile phone and a bank account.
Once you receive your invoice check the details. The invoice should show your full name, address, and contact details. It should also show the make/model of the vehicle you are buying, the year, and the full chassis number. The freight and insurance costs should be shown separately on the invoice. If not, request for the costs to be indicated separately on the invoice as well as the full chassis number. The exporter's bank account details should also be indicated.
Take the invoice to your bankers and request for a telegraphic transfer to be sent to the bank account details as indicated on the invoice. The bank will convert the currency on the invoice and advise you the equivalent Kina to pay them, including bank charges. Some exporters will allow payment by instalments, however you should consider the extra bank charges you need to pay for each instalment. Mention the invoice number and vehicle reference in the details of payment of the telegraphic transfer. This will assist the exporter to apply the payment from his bank account to your invoice. Send a copy of the bank receipt and invoice to the exporter by fax or e-mail so they can also use this to apply your payment immediately.
Once the exporter has your payment they will arrange shipment of your vehicle. They need to contact the various shipping companies to book your vehicle on the next available vessel (usually at the end of the month). Sometimes, the new car manufaccturers have a back-log of new cars to ship and shipment may be delayed as a result. New car manufacturers receive priority booking over used cars as a policy of all shipping companies. These ships load the vehicles by driving on and off the vessel. They are referred to as Ro-Ro vessels. The sailing time for vessels from Japan to Lae and Port Moresby is usually 11 days to 14 days. Other ports such as Kavieng, Kimbe, Rabaul, Madang, and Wewak must wait for transhipment out of Lae and cost more than Lae and Port Moresby.
You should arrange a local clearing agent to clear your vehicle from the vessel. A good clearing agent will advise you the exact date of arrival of the vessel, the date you can collect your vehicle, and calculate the wharf charges and clearing costs to pay. They can also arrange for delivery of your vehicle to your door step.
Once you have the vehicle you need to register it locally, then enjoy the driving. A word of advice, always check the engine before driving the vehicle over a long distance. Some of the vehicles need to be topped up with oil and water, and the brakes need to be checked. Also, all vehicles are shipped with minimal fuel in the tanks. This is a safety requirement by the shipping company to avoid fire hazards on board the vessels. Therefore remember to take enough money to fill up your vehicle.
Who to Trust?
There are a few unscrupulous people taking advantage of unsuspecting Papua New Gunieans wanting to buy a good cheap used vehicle from Japan. How to determine who to trust is difficult, but follow some simple rules and you won't go wrong.
Know who you are dealing with. One-man or two-man operations can easily move around, change their mobile numbers, or set up new names for their business and start their scam again. A website is easy to set up and doesn't cost so much these days. Check the company you are dealing with at your local Embassy in Tokyo. Also check for an office phone number. Most scammers run their business from their mobile phone and don't have an office. You can also check with your local clearing agents or just ask a friend or someone who imported their own vehicle as to which exporters are reliable or not.
Everyone loves a bargain. But sometimes the price seems so unbelievably cheap that it is too hard to pass up. In Japan there is a saying, "if it is that cheap, then it is not worth the risk of buying". In other words, if it is too cheap then there must be something wrong. Check the websites and get an idea of the average market price. If there is a huge discrepancy then you should be wary. Remember, an exporter who has no intention of exporting a vehicle to you can quote you any cheap price you want. He doesn't care how cheap because he isn't losing any money on the deal, rather, he makes 100% on whatever your prepared to pay.
An unscrupulous exporter will target vehicles at the Japanese auctions that have done high kilometres, and in poor condition. They will wind the odometer back and do a few quick-fix repairs to make the vehicle seem it is better than it is. In many cases the cars breakdown to an unrepairable state within 6 months. How many people do you know who have been taken by these tactics and lost their money. Ask for a fax copy of the "Export Certificate" from the exporter. The export certificate is issued by the Japanese Transport Authority and shows the last registered mileage on the certificate at the last date of inspection. Some exporters will change the year of the vehicle and re-register it in another country before selling it to overseas clients. The export certificate will show any discrepancy between the mileage and the year, so beware if the exporter is not willing to fax a copy of this certificate to you.
Importing direct from Japan is a safe way to ensure the vehicle you receive is genuine. A good exporter knows that a good reputation ensures a lifetime of business. Poor condition cars ensure loss of business. A bad reputation can grow 5 times faster than a good one. Reputation takes time to build and must be earned the hard way. Reliable exporters advertise constantly in local newspapers and magazines. Unscrupulous people are in it for a fast buck. Don't waste your hard earned money by not taking a little precaution and getting taken by the appeal of "a bargain of a lifetime".
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