Audi VW Retail Japan "Outlet Cars": Online Used Car Sales Service

Audi VW Retail Japan (AVRJ) launched its online used car sales service "Outlet Cars" on March 17, 2025. This new service targets vehicles traded in at the company's dealerships that do not meet the certified pre-owned standards for Audi and Volkswagen but have no accident repair history. A notable feature of Outlet Cars is that it limits the repair of noticeable scratches and dents to keep prices low. Additionally, the service handles models beyond just Volkswagen and Audi, broadening its appeal to a wider customer base and strengthening its used car sales capabilities. Notably, AVRJ has established a dedicated showroom in Tsuzuki-ku, Yokohama, allowing customers to physically inspect vehicles in addition to the online platform.

The introduction of Outlet Cars represents a strategic move by Audi VW Retail Japan, enabling the company to directly sell trade-in and purchased vehicles that previously would have been wholesaled or sent to used car auctions due to not meeting certification standards. This initiative is likely aimed at capturing a broader segment of the used car market and diversifying revenue streams. The combination of an online platform and physical stores suggests a hybrid retail strategy addressing customer needs for convenience and reliability, potentially reducing consumer apprehension about purchasing used cars online. Furthermore, emphasizing "no accident repair history" is intended to build a certain level of trust in quality and differentiate Outlet Cars from other low-priced used car options.

Introduction to Outlet Cars

This service represents the first introduction of a European used car brand into the Japanese market. Outlet Cars is operated by Audi VW Retail Japan (AVRJ), established in January 2025 through the merger of Audi Japan Sales and Volkswagen Japan Sales. AVRJ is a subsidiary of PAIG Japan Automobile Investment, under Porsche Holding, which provides a robust management foundation and extensive expertise in automobile sales.

The timing of Outlet Cars' launch immediately after the merger of Audi Japan Sales and Volkswagen Japan Sales indicates the new company's intent to unify its business strategies and strengthen collaboration in the used car segment. This move is expected to leverage the combined networks and sales expertise of both brands' traded-in vehicles, creating a more efficient system for used car sales. Additionally, by introducing a well-established European used car brand, AVRJ aims to meet consumer expectations for quality and reliability, strategically positioning itself uniquely within the Japanese used car market.

Offerings and Inventory

The vehicles handled by Outlet Cars are primarily those traded in at authorized Audi and Volkswagen dealerships, but do not meet the certification standards for approved used cars of each brand. These vehicles are guaranteed to have no history of repairs due to past accidents. To enhance price competitiveness, exterior repairs such as scratches and dents are limited to those that are particularly noticeable.

Interestingly, Outlet Cars also plans to handle models from manufacturers other than Audi and Volkswagen, aiming to meet the diverse needs of a wide range of customers. In addition to online sales, they are opening a showroom in Tsuzuki Ward, Yokohama City, where actual vehicles will be displayed, allowing customers to check the condition of the vehicles in person before making a purchase.

Handling vehicles from brands other than their own can be seen as a strategic decision by Outlet Cars to reach a broader customer base and expand their market share in the used car industry. By offering vehicles from various manufacturers, they can become an attractive option for customers who are not particular about brand or who prioritize budget. Having a physical store in addition to online sales is an important element in enhancing transparency and customer trust. Especially in the case of used cars, many consumers have concerns about the condition of the vehicle. By providing an opportunity to visually inspect the vehicles, they aim to lower the hurdle for online purchases and encourage more customers to use their services with confidence.

Anticipated Impact of Participation

With Audi Volkswagen Retail Japan (AVRJ) launching “Outlet Cars,” direct online sales by the company are expected to progress, potentially impacting the traditional used car distribution channel—the auto auction market. Specifically, vehicles that previously did not meet the certification standards for Volkswagen and Audi and were listed at auctions may now be sold directly through Outlet Cars, which could lead to a decrease in the number of such vehicles available in the auction market.

This shift implies that used car dealers who rely on auctions to procure Volkswagen and Audi vehicles may find their sourcing options more limited. Furthermore, the reduction in supply of certain branded vehicles may influence price formation and the overall transaction environment within the auction market. AVRJ’s move toward direct sales may prompt other dealers to follow suit and strengthen their own online direct sales strategies, potentially accelerating the trend toward online direct sales in the used car distribution industry.

As an auction intermediary, we do not necessarily welcome this move by AVRJ. We recognize that it will become increasingly necessary to review our vehicle sourcing methods and sales strategies. In response to these changes in the market environment, we feel that building new business models will be essential going forward.