Plummeting car sales have led to a slump in prices in New Zealand. Comparing March 2008 to March 2007, sales from the public to dealers are down nearly 21% private sales are down by over 7%, while sales from dealers to the public are down nearly 20%. Sales from dealer to dealer have fallen nearly 28%, while registration of used imports of have dropped nearly 18%.

Clive Matthew-Wilson, editor of car buyer’s Dog & Lemon Guide, says that combination of factors has hit vehicle sales.

“First, the economy is in decline, which has made buyers suddenly cautious. Secondly, the new vehicles on sales were ordered during boom times, so there’s now an over supply.

Third, although overall imports of Japanese secondhand vehicles are falling, a few dealers brought in vast number of vehicles in anticipation of tighter government controls on vehicle emission. There are now too many vehicles chasing too few buyers.” Online auction site TradeMe - which is now the dominant force in car sales is the only retailer reporting growth, as more and more commercial car dealers use its website. In the twelve months including March 2008, around 170,000 vehicles were sold on TradeMe compared to 115,000 the previous year.

New Zealand’s second largest auction house, Turners won’t reveal sales figures but says that lower prices have meant a major increase in bargain hunters on the auction floor.

Export of Japanese used vehicles has already reached $7 billion business in2007. Despite the high cost of transport, the sale of used vehicles to other countries is still profitable in Japan due to the relatively low cost and good condition of the vehicles being purchased here.

Contributing factors to the viability of the vehicles for export include strict inspection tests in Japan, strict environmental laws in Japan that make vehicle disposal expensive in Japan.

The most popular destinations for used vehicles from Japan are Russia, NewUAE, New Zealand, United Kingdom, Australia, Ireland, Chile, Pakistan, Peru,Kenya, Singapore, Magnolia and South Africa.

Auto auctions as main source for export

1. Used car exporters or export agents, have a number of sources at their disposal to buy used vehicles in Japan.
2. Japanese used cars are mainly sold in Japan at auto auctions by car owners and dealers.
3. At auto auctions, owners are hidden from bidders while the auctioneersprovide independent car evaluations called Inspection Sheets and place forsellers and buyers to meet.
4. Although auto auctions are primarily for residents in Japan, seekingan alternative from buying at car dealerships, many exporters, acting as abidding agent for the importer, use this as their main supply source.
5. There are 30 major auto auction groups operating throughout Japan likeUSS, JAA, JU Group, TAA etc.
6. There are about 200 auto auction sites in Japan.

Besides auto auctions, exporters have access to two other sources to buy vehicles for export.

1. Used car dealers with limited stock and high prices.
2. Private sellers of used cars but the process is too difficult to use.

Japan’s simple export procedure. Used vehicles selected for export from Japan must be prepared before shipping.

1. This includes deregistering the vehicle with the government, gettingan export certificate, and cleaning the car from bio-security risks.
2. Car cleaning is necessary for export to Australia and New Zealand.

If you want to contact Japanese used cars exporters and importers then please visit www.JapanAutoPages.com and send your enquiries and offers to thousands of our members.