Porsche 911 - The car you've always dreamt about

Introduction

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An introduction to buying a used Porsche directly from Japan.

Cultural and economic differences create business opportunities... read the info below to understand a bit more about where these cars come from... Importing a Pre-owned Japanese vehicle through Tokyo Auto Trading is easier than you might think and routinely result in 30 to 50% savings off local prices for equivalent models.

Japanese cars intended for domestic use are always designed to higher specifications than export versions, and while in Japan suffered less abuse. Nevertheless, due to particular social & economic constraints, used vehicles in superb condition can be obtained at good prices.

Scarce land, crowded cities & short vacations...

Superb and cheap automobiles, beautiful countryside and perfectly maintained roads should make Japan a motorist paradise.

Unfortunately, congested urban areas, costly toll roads and tight holiday schedules take most of the fun out of long distance car travel.

Toll highways traffic jams longer than 100 kms are common on major holidays such as on the Golden Week, Obon and New Year. Portable toilet (used in the car) is a common accessory.

The efficient rail and subway transportation system is always favored for daily commuting, and the SHINKANSEN (bullet train) takes care of more serious traveling needs.

Consequently, having been through less use & abuse, the overall condition for cars of similar age will be considerably better in Japan than in most other countries.

Most cars, even tuned-up performance units or fully loaded SUV, are never used to their potential and spend their entire life in extended neighborhood use and/or proudly displayed on courtyards.

Brand new is good, but used is not...

In Japan, there is a serious stigma attached to using or acquiring anything "used". Originating from ancient beliefs, it still affects all commodities, such as home appliances, automobiles, even houses.

For instance, purchasing a new home in Japan will invariably results in its value shrinking by about 30% within the first 5 years. Value will be considered equivalent to zero within 15 to 20 years.

Even with the current economic slow down and a newly acquired Japanese taste for bargains, the large majority of vehicles is still acquired new from a dealer, by trading in the current one (usually at shaken renewal time, after 3, 5, 7 or 9 years).

Private car sales are non existent in Japan, because technically impossible. From one owner to the next, the vehicle MUST pass through the hands of an authorised dealer for ownership transfer. NOTE: Genuine Service Books are almost never available with Japanese imports as practically no one in Japan bothers writing in them nor have use for them. This is because maintenance is always done by the dealer and private sales do not exist. Often the owner will dispose of anything that can trace the car back to him or her so he/she is not bombarded with more junk mail or telesales.

Recently, luxury or high performing vehicles, such as Porsche, which has had very little chance to be enjoyed to their capacities on Japanese roads are the most recommended for export. Early depreciation is intense as cars commonly lose as much as 40% of their original value within the first 3 years.

In addition to the above, strictly enforced speed limits of 40km/h in urban areas (100km/h on toll roads), produce low mileage, immaculate vehicles which have mainly been shown around by their proud owners.

Washing and waxing, is done with quasi religious fervor, even in modest income districts one can hardly find any neglected vehicle.

Car theft being virtually unknown in Japan, alarm systems are extremely rare on Japanese cars. On the other hand, features such as power steering/windows & mirrors, climate control and car stereo are considered standard.

Produce, consume & pay taxes...

Fierce competition and introduction of new models every four years, results in strong incentives to new car buyers.

Japanese economic vitality depends on maintaining consumer appetite for its new products. Anyone with an ID, a job and a guarantor can drive any car out of a showroom with zero down payment (6 to 7% interest on full loan is the norm).

In other words, purchasing a new car in Japan is relatively cheap, while owning it, is not.

For instance:-

Annual road tax ranges from JP Yen 40,000 (US$380) for ordinary cars, up to JP Yen 70,000 (US$700) or more for luxury units.

Shaken renewal costs at least JP Yen 120,000( US$1100) not inclusive of necessary repairs/replacements (every 2 years, after the first original 3 years)

Parking monthly fee amount to JP Yen 10,000(US$110) to 50,000 (US$550)depending on area (parking space within a few hundred meter from residence, is mandatory to purchase a car, police will come to verify the size and location).

Insurance premiums (other than basic comprised in shaken) amount to at least JP Yen 10,000(US$110) per month.

General maintenance/repairs are traditionally never undertaken by the owner himself, but by the dealer at high price (services, labour, rent & advertising are very costly in Japan)

But the main factor behind fast shrinking car values and early replacement, is the Shaken, a combination of taxes and mandatory roadworthy requirements, added to the price of all cars (new & used) allowed "on the road".

Besides providing huge income for the government, it insures every motor vehicle on Japanese road is safe and sound. Shaken basic price is identical at each renewal and will eventually amount to more than the value of the car itself. This explains why only an eccentric person would consider keeping a car longer than seven or nine years, regardless of its condition. When coming to Japan to purchase a brand new car, you will have to buy the shaken (and provide evidence of parking space, etc.,) even though intended for immediate deregistration and export. Note that going through the above procedure still allow for large savings.

The large majority of these artificially depreciated vehicles is sold at auctions and exported to the rest of the world at a current pace of over 30,000 units/month.

We at Tokyo Auto Trading hope that the above information has helped you to understand the Japanese car market as it stands today.

Colin Shea.