Supply of used cars
In Japan, used cars are mainly sold at auto auctions by car owners and dealers. At auto auctions, owners are hidden from bidders while the auctioneers provide independent car evaluations called inspection sheets. Exporters, acting as bidding agents for importers, use the auto auctions as their main supply.There are over 200 auto auction groups operating throughout Japan including JAA, JU Group, TAA, USS, and ZIP.
Besides auto auctions, Japanese exports have access to vehicles from dealerships and private sellers.
Vehicles which will be exported from Japan must be prepared before shipping. This includes de-registering the vehicle with the government, getting an export certificate, and cleaning the car to remove biosecurity risks. Car cleaning is especially necessary for Australia’s AQIS and New Zealand’s Ministry of Agriculture and Forestry (MAF) agencies’ clearances.
Exporters can ship the car that is ready by Ro/Ro or Container according to customer specification, ship schedules, and the capabilities of the destination port.
The suitability of Japan’s domestically sold cars for export to other countries is constrained by various factors. Vehicles in Japan have right-hand drive—the driver’s seat is on the right side of the vehicle—in accord with Japan’s left-hand traffic. Some countries with right-hand traffic permit right-hand drive vehicles, though right-traffic headlamps are generally unavailable for models exclusive to Japan. Some countries with right traffic do not allow right-hand drive cars, but in some such markets the extensive labor required to convert a car to left-hand drive is economically feasible; such conversions are sometimes done by the local importers. The Philippines is an example of a market where such conversion is common.Japan’s automobile safety regulations also differ substantially from the ECE Regulations used throughout most of the world and the North American regulations that apply in the United States and Canada.Vehicle components such as windows and windshields, seat belts, lamps and reflectors, and mirrors, as well as design features for crashworthiness such as bumpers, fuel tanks, and structural rigidity of vehicles meant for the Japanese market may not comply with non-Japanese standards.They often lack strutural reinforcements needed to meet side-impact crashworthiness standards in effect outside Japan.Moreover, entire categories of vehicle, such as Kei cars, do not exist in regulations outside of Japan.
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Generally, most exporters are responsible for the organization and completion of the vehicle’s transportation till it arrives at the importer’s Port of Destination (POD). At the POD, possession of the vehicle, and the responsibility of possession, is laid on the importer. Financial responsibility, on the other hand, is transferred when ownership is handed over. Ownership is switched after the car has been purchased and before being exported. In the case of damage or losses occurring during shipping, the buyer is the one bears all financial loss.
To specific countries
Pakistan also applies strict control on imports. In order to import a car, it must be not more than 3 years old. Extremely high importation taxes are levied on imported vehicles.Special ships are sometimes used for exporting vehicles to Pakistan, to meet the rising demand.