New Zealand has a lot going for it, from being the greatest at rugby to being the home of the Lord of the Rings.
The abundance of cheap, secondhand Japanese automobiles available in New Zealand, on the other hand, is something that goes unnoticed.
Despite the fact that prices aren't as low as they once were (due to general inflation, the recent effects of Covid-19 on supply chains and imports, and changes to import laws that make it more difficult to bring in used imports), New Zealand is still seen as the "dumping ground" of the West when it comes to affordable used Japanese cars.
Of course, New Zealand isn't the only country where you can get a good deal on a used car imported from Japan (it's just where we reside, and it serves as a perfect "microcosm" for the purposes of this post).
Take a look at the Honda Civic, for example. Whatever generation of Honda Civic you like, chances are you can get one in New Zealand for a good price as a "Japanese import":
Take a look at the Honda Civic, for example. Whatever generation of Honda Civic you like, chances are you can get one in New Zealand for a good price as a "Japanese import":
Why Are Japanese Import Cars So Low-Cost? 3 Important Reasons:
There are a few major reasons why old Japanese imports are often a solid investment.
They are as follows:
New autos that are less expensive – Japan has some of the most competitive new vehicle costs in Asia and the rest of the globe. This is due to Japan's vast economy, which allows for "scale economies," as well as the fact that automobiles made locally do not have to be transported as far for sale. Motor vehicle manufacture is one of the most important sectors of the Japanese economy, and local consumers gain as a result of its magnitude.
Different characteristics (for example, JDM variations) – Another thing to keep in mind is that JDM (Japanese Domestic Market) cars may have fewer or restricted features. If you're not familiar with JDM, read this article to learn more about it. Consider a basic Japanese vehicle such as the Suzuki Swift. When these were first offered in New Zealand, they were equipped with numerous airbags for side protection and other features. However, JDM variations (i.e. Suzuki Swifts sold new in Japan) that make their way to New Zealand frequently only have twin airbags. Below, we go through this topic in further depth.
The cost of obtaining a driver's licence and owning a used automobile - The fact that used Japanese imports are so inexpensive to buy second hand (when imported into other nations like New Zealand) is owing to Japan's tight licencing system, which makes owning a used automobile for too long prohibitively expensive. In Japan, a car must undergo a costly and rigorous testing routine three years after purchase to certify its roadworthiness. After then, a car must be tested and licenced every two years until it reaches ten years of age, at which point it must be tested and licenced every year.
Compliance for your car can cost upwards of $1000 USD, which adds up rapidly. This technique, known as Shaken, is one of the main reasons why secondhand Japanese cars may be found for cheap in other markets. In the end, this method was implemented to keep Japan's domestic automobile market humming. It effectively makes purchasing a new car a more tempting option, hence encouraging new car purchases. Shaken is widely regarded as the primary reason why Japanese drivers do not keep their vehicles for long periods of time.
Why Are JDM Automobiles So Cheap?
We said earlier that JDM cars exported outside of Japan can be cheaper due to differences in parts/configurations/equipment levels.
The Toyota Crown, for example, features a touchscreen infotainment system that also controls the air conditioning system. It's all in Japanese, and while there are some third-party translations available, utilising one of them removes some functionality, which is a "black mark" that could dampen demand for JDM vehicles.
The right-hand-drive issue is another reason why JDM Cars are so cheap when exported to other markets.
Any new car developed in Japan will be right-hand drive (i.e. the steering wheel is on the right-hand side of the car, made for driving on the left-hand side of the road). The bulk of the world's population, on the other hand, follows the "American" method of doing things.
This means that the pool of countries where the average automobile buyer will wish to acquire a car for "everyday" use is confined to Commonwealth nations such as Australia and New Zealand.
People may be pleased to acquire right-hand drive cars in markets like America or Canada, but they are rarely used on a daily basis, which means there is less demand.
Finally, actual JDM cars (not merely JDM variations of cars intended for export) may be less expensive when exported because customers must deal with limited parts availability and fewer repair and maintenance alternatives. Lower demand is also a result of this.
Conclusion:
As you can see, there are a variety of reasons why secondhand Japanese cars can be found in foreign markets for a low price.
By far the most important aspect is that Japan's whole automobile industry and regulatory framework are designed to encourage Japanese people to buy new automobiles more frequently, hence creating "artificial" demand for domestically produced vehicles. For many people, buying a new automobile after a few years is a far better alternative than keeping an old one on the road.
These old automobiles are then auctioned off, and the proceeds are distributed to car dealers and private importers in nations such as New Zealand. More information on how to import an automobile from Japan, including specifics on the auction house system, may be found here.