The used car export market from Japan makes up about 40% of the cars sold in the Japanese used car auctions. Major players accessing these auctions are Russia, New Zealand, and a myriad of other countries, both right-hand drive as well as left-hand drive vehicles. Rather than working in competition with these countries, Irish dealers and customers can work in the gaps of the import rules these countries have. A list of some of the restrictions these countries have to importing used Japanese cars:

• Date of manufacture: Most countries can only purchase younger/newer vehicles. This is not a restriction in Ireland.
• ESC or electronic stability control: Countries like New Zealand require this on all vehicles imported from Japan. This is not a restriction in Ireland.
• Emission codes: Countries like New Zealand can only import vehicles with a triple-digit emission code starting from "D" or younger. This is not a restriction in Ireland.
• European cars: Most countries prefer Japanese-made used cars and if they purchase a right-hand drive European-made car, it is usually the luxury versions with larger engines. Luxury larger-engined cars have a higher VRT tax requirement in Ireland. Smaller-engined European cars, although popular in Ireland, are not sought after by other countries.

Unlike most countries, the private used car market basically does not exist. Most used cars in Japan are not sold privately, but rather through a dealer. The complex paperwork required to change ownership takes away any incentive for private car sales. Cars are bought and sold through car dealers in Japan, not the public. Dealers can hold and keep the margin on the sale of their used cars without the impact of private sales lowering this margin.

Dealers purchase their stock from the public or through the Japanese used car auctions. They then load their margin onto the vehicle before selling. Purchasing directly from the Japanese used car auctions for export allows an importer to bypass these margins and purchase at a wholesale price.

Most families own a car, usually just one. However, commuting to work is usually done by train. The family car is used for weekends or public holidays. Hence the relative "low" use, or kms traveled is lower for the same age compared to other countries. Japanese used cars have an average lower km use compared to other countries.

Although the cost of purchasing a car, even with the dealer's margin on, may be relatively cheap compared to other countries, the monthly and yearly cost of owning a car in Japan is expensive. Car park rental, insurances, annual taxes, and every 2-year expensive registration fees all add up. If you are going to own a car in Japan it might as well be a good or "newer" car. Older cars lose value, or depreciate, faster than in other countries. This extreme depreciation of used cars in Japan, though costly for the Japanese public, is the reason for a used car export market.

Japanese take care of their cars. They wash them on the weekends. They regularly service them. They are a member of the family!

Cars made in Japan incur an Irish EEC Import Duty of 2.5%. All other vehicles 10%.

As stated above, local Japan market dealers access their stock from both the public as well as the Japanese used car auctions. When you as an importer access these auctions, you are accessing the Japanese wholesale market. You are buying cars at prices the Japanese public cannot.

Unlike buying from an exporter's stock list, cars sold in the auction have an independent valuation done by the auction. Whereas a dealer selling a car will have a very rosy and positive view of the car he is selling you, buying from the auction will be done through an independent appraisal by the auction.

Documentation will be complete. To sell a car in the auctions, you must be a car dealer as well as a member of that auction. If you try to sell a car without the complete documentation backing that car, you will first receive a fine from the auction and could even risk losing your membership in that auction. The risks are too high for the seller and they carefully check documentation is complete for cars they sell.

Volume and variety. Every week you will be able to find every type of Japanese car you are looking for and more. The USS Tokyo auction alone each week has between 10,000 to 20,000 cars going through the auction.