Navigating the Complexities of Selling Japanese Auction Cars in the US and Australia

Considering the challenges of selling Japanese auction cars in the United States and Australia can seem daunting. However, understanding the specific requirements and regulations of both countries can help you identify viable markets and client bases.

Understanding the Challenges with the US Market

First and foremost, you must recognize that the United States primarily drives on the right side of the road, in contrast to Japan. Therefore, any Japanese cars intended for the US market must have their steering wheels moved to the left. This process can be both expensive and logistically complex, making it a significant hurdle for many sellers.

To provide a more detailed perspective, let's look at some specific issues:

Steering Wheel Placement and Car Customization

Japanese cars built for the Japanese market typically have their steering wheels positioned on the right side, which is perfectly suited for left-hand driving. In the US, this would require extensive modifications, often necessitating the complete conversion of the car to a left-hand drive. This is a time-consuming and costly process, which could deter potential buyers.

Car Requirements and Design Specifications

The US has stringent car standards, with meticulous design specifications that many Japanese cars fail to meet. For example, the Subaru Forester available in Japan lacks daytime running lights, while the Honda Fit does not permit the front passenger seat to recline completely. Even when these cars are brought into the US, they often cannot be 'grandfathered' into compliance, requiring detailed modifications to meet the regulatory standards.

Special Cases and Exceptions

While the general rule is clear, there are a few exceptions. Cars shipping from Sweden to the US can face additional requirements, such as the need for side door collision protection on Volvos. This is due to the manufacturer's differing standards between regions.

Exploring Opportunities in Australia

While the challenges are significant in the US, Australia presents a more flexible market for importing and selling Japanese cars. The Commonwealth of Australia has some of the least restrictive car regulations globally, offering more leniency in importing vehicles.

Regulations and Imports in Australia

Despite the generally relaxed regulations, there are still certain requirements to consider. First, you must import the car legally, which may involve paying import fees and adhering to safety standards for the specific state where the car will be sold. For instance, Victorian and Queensland have different safety requirements for imported vehicles, which you must fulfill to avoid legal issues.

Market Trends and Opportunities

Recently, car dealerships in Southeast Queensland and Northern New South Wales have experienced a surge in demand, fueled by widespread flooding in 2022. The destruction of hundreds of thousands of cars in these regions led to a significant shortage in used vehicles. As a result, many consumers are eager to purchase cars from the Japanese auction market, particularly when they offer unique or discontinued models like Daihatsu.

Conclusion

While the challenges of selling Japanese cars in the US and Australia are substantial, understanding the specific requirements and regulations of each market can help you navigate these complexities. For the US, focus on the substantial modifications needed for the car to comply with right-hand drive regulations. In Australia, pay attention to import fees and safety standards while taking advantage of the current demand for unique and discontinued models.