Our new office!!

The other day, we said good-bye to our old office of 5 years and moved to a new one just 80m down the road. The old one was our first office which was big enough when I started this business with my wife but now I have a few employees. If I want to expand more in the near future, there will not be enough room so I decided to look for a new office.

When I chose our old office, I wanted somewhere handy to a train station for employees to commute, somewhere big enough as an office visitors can trust and has a meeting room. At first I visited real estate companies but the properties they had did not appeal to me, so eventually I found this one myself and negotiated with the owner directly. Although I was worried at first if I could keep up with the rent payment, my business has grown enough to feel it is too small and we decided to leave.

While looking for the office, I wanted somewhere with reasonable car parking space and easy access. I checked everywhere but the area our previous office was seemed good and safe, with the car parks we have been using for a long time, 3 lines and 3 train stations are nearby, easy access from the city centre; I ended up looking for one in the same area.

I visited different real estate companies, the same as last time and because I could not find a good one, I decided to spend more time. Then I happened to find a “To Let” notice in the neighbourhood, so I rang the real estate company. Real estate companies usually look for tenants using their own network when one of the properties they manage becomes available to get fees (normally 1 month rent) from both the owner and the tenant. However, their own network is limited in finding new tenants and about 1 month after the initial listing, they disclose it to other real estate companies. It was good timing for them when I contacted them, just when they started advertising the property as a sole agency. They were keen to reach an agreement. I gave them some conditions (I thought I was asking too much) but the owner accepted, so we got an agreement that was satisfactory for both of us.

The new office is twice as big with separate toilets for male & female, permanent presence of a security guard, quiet but with more windows: I like it! It has 2 meeting rooms so we can now have two visitors at the same time. No more panicking. We can have at least 5～6 more employees. We have to expand our business somehow.

If you come to Japan, please visit our new office. I always look forward to seeing our valuable customers.


★ Japanese used car stock : http://jpctrade.com/stock/index.html
★ JPCTRADE Home page : http://jpctrade.com/
★ JPCTRADE Blog : http://jpctrade.blogspot.com/

(Editor)
JPC TRADE CO.,LTD.
Kato building 4F, 1-1-2 Furuishiba, Koto-ku, Tokyo
Japan Used Motor Vehicle Exporters Association (JUMVEA)
TEL : +81-3-5245-7731
FAX : +81-3-3643-4955

Falling scrap metal prices

The role of auction houses is to make car trades easier by connecting sellers and buyers. For people in the used car business, they have another role of disused motor vehicles trade. When we (JPC) buy cars from Japanese people, we buy them in two types: cars which still have a market value and are still drivable, and cars which are going to cost too much to repair because of some fatal problems in main parts such as engines and are only good for scraps/parts.

In the former case, we sometimes sell them directly inside the country or overseas or otherwise we take them to an auction place. In the latter case, we sometimes take them directly to wreckers otherwise put them up for auction if there is a possibility of getting buyers there. However, if we cannot get our reserve price and cannot make a sale, we ask the auction place to find buyers for us. (Then the auction place hands them to the wreckers.)

About 3 months ago, cars with large engine displacement used to attract good money. This was because our neighbour China had run out of scrap metal to be used for construction for the Beijing Olympics and since last year the price of scrap metal leapt up, disassembled cars all of a sudden had value; all wreckers started to compete with others in buying them.

But this crazy situation was short-lived and ended abruptly. Since last month, the cost price at wreckers started dropping. This month, they are not even buying them. Auction places changed their policies from this week not to buy them. The Olympics finished and now with the bad economic outlook worldwide, there is no demand in China any more. Wreckers cannot sell them for a profit, so they stopped it totally.

This time last year, TV was showing pictures of a factory with a mountain of plastic bottles waiting for shipment to China but last week they were showing the same factory with the mountain 1/5 in size. The same as metals, this is because of the declining demand in China from economic stagnation.

One day we might have to pay to get rid of cars and plastic bottles…

The world’s economic situation did not used to affect Japan so much, so we could relax but now what is happening in the world is affecting us directly or indirectly and even small business owners like myself get damage from a global downturn in many aspects. Having a business like this, I have to keep up with the current world affairs. When I am home, I watch ABC and BBC news as well as reading business papers. My children do not like this because they cannot watch their favourite programme but never mind. I do not think it is too bad for them not to watch TV anyway. I am the boss of the house!


★ Japanese used car stock : http://jpctrade.com/stock/index.html
★ JPCTRADE Home page : http://jpctrade.com/
★ JPCTRADE Blog : http://jpctrade.blogspot.com/

(Editor)
JPC TRADE CO.,LTD.
Kato building 4F, 1-1-2 Furuishiba, Koto-ku, Tokyo
Japan Used Motor Vehicle Exporters Association (JUMVEA)
TEL : +81-3-5245-7731
FAX : +81-3-3643-4955

Japan Car of the Year

This year, the award-winning car was “Toyota IQ”.

The concept of the “IQ” is that, although the total length of the body is less than 3m, 40cm shorter than normal light cars, 3 adults and 1 child can be seated and it was developed as a private vehicle with a smaller CO2 emission (99g/km). It has some new innovative technology such as a specially designed platform, the new layout of the differential gear, asymmetrical position of the driver and passenger seats (the passenger seat is positioned more forward than the driver seat), 9 airbags including the rear window curtain shield airbag and compact air-conditioning unit. It created a new class of premium ultra-compact vehicle.

When asked what the reason for it being less than 3m is, the developers said frankly “there is no meaning in the number like it is going to reduce the tax rate in some countries, it is simply a good number for the design of small cars…” Sometimes if you ask this kind of question, some smart ones might say “when you put the powertrain system and the space for two adults in line 3 is the minimum number…” but from their stance of just putting the impossible number first, then going straight into the development, we feel their passion and responsibility: I liked it.

Also they applied a unique method of “making as many samples as possible” while developing the car. In this modern age, when new cars are developed, they normally use CAD (computer aided-design) to reduce the cost without making samples but Toyota has spent a lot of money and time for the IQ, setting out an innovation of car body structure.

With the slow economy and young people’s reluctance to buy cars, Toyota is suffering a downturn along with other car manufacturers but they cannot find the end of the tunnel just by minimising everything. Toyota has been trying desperately to make a car which can “create a new demand” and one of the answers was the IQ.

Unfortunately I have not yet driven one but according to the commentators who already have, the inside space is well-designed especially in the position of the passenger seat which gives enough leg room even when a 170cm adult sits behind another of the same size in the passenger seat and it is amazing it actually has a capacity big enough to put 3 adults & baggage or 3 adults & 1 child. However, if we pick one fault, it would be that, because this IQ was developed for Europe as the main market, the windows on both sides seem too high for Japanese people. On the other hand, in Europe the feeling of “enclosed” is important so I think they might adjust it depending on where they want to sell the car.

At the selection, 40 out of 60 members of the panel gave maximum points of 10 to the IQ beating the runner up “Citroen C5” 303 points, it was a convincing victory.

After their effort of making a car with high efficiency and environmental performance and their passion toward safety were recognised, it might be a good opportunity for Toyota who has been struggling to produce something different to change their attitude towards car manufacturing as a whole.

★ Japanese used car stock : http://jpctrade.com/stock/index.html
★ JPCTRADE Home page : http://jpctrade.com/
★ JPCTRADE Blog : http://jpctrade.blogspot.com/

(Editor)
JPC TRADE CO.,LTD.
Kato building 4F, 1-1-2 Furuishiba, Koto-ku, Tokyo
Japan Used Motor Vehicle Exporters Association (JUMVEA)
TEL : +81-3-5245-7731
FAX : +81-3-3643-4955

Fuel prices keep dropping!!!

A few months ago, fuel prices kept going up and now it does not look like anything can stop it going down. Within the last few weeks, it dropped \10/L. It has been dropping for the last 13 weeks.

The reason is that after the price of crude oil dropped, all the oil distributors dropped their wholesale price; with declines in forward prices and prices on the spot market, it looks like this trend is going to continue for a while.

For us in the car business and the consuming public it is good news but unfortunately the rising petrol prices 6 months ago caused consumers to avoid cars and a slight decrease in fuel price is unlikely to bring them back behind the wheel.

So at the moment, it does not matter how low the fuel price goes down; unless the demand recovers, petrol stations cannot remain in their business. They are struggling to get customers by lowering their prices even more. Our office is in the middle of Tokyo and the petrol price around here is higher than other places because of the location but once you are out of the city centre, the price on the display gets cheaper.

Yesterday, I drove on a main road to get to an auction place and noticed that the further it is away from the metropolitan Tokyo, the price of petrol on the display gets lower by 1-2 Yen. In the end, I found a station near the auction place with the price about \10/L cheaper than the ones by our office and filled our company car there. I felt a bit lucky. However I only filled with 20L this time, hoping it gets cheaper next week or a week after; then I will fill it up again.

I heard that 70% of the 43000 petrol stations in Japan are now operating at a deficit. It comes from excessive competition. The only way to keep their business in this slow time is to decide the display prices by carefully thinking about the prospective move of crude oil prices and surviving through the fierce price war. Badly located or small scale petrol stations disappear every year but it looks like petrol stations without management flair might have a hard time for a while.

They are hoping the same thing as us used car dealers: recovery of domestic demand in the country. How can we make people use cars again? The time seems to be tough now.


★ Japanese used car stock : http://jpctrade.com/stock/index.html
★ JPCTRADE Home page : http://jpctrade.com/
★ JPCTRADE Blog : http://jpctrade.blogspot.com/

(Editor)
JPC TRADE CO.,LTD.
Kato building 4F, 1-1-2 Furuishiba, Koto-ku, Tokyo
Japan Used Motor Vehicle Exporters Association (JUMVEA)
TEL : +81-3-5245-7731
FAX : +81-3-3643-4955

Car of the year

This is an award given to the best car for the year. It started in the US in 1950 and we copied it and the “Japan Car of the Year” started in 1980. This year’s winner should be announced in about a week time.

The cars they assess are Japanese passenger vehicles. By selecting the best car for the year and praising its developer and manufacturer, it will promote more effort in making better quality, better performance and safe cars as well as to contribute in the development of the global automotive industry, protection of global environment and transport safety.

They have 2 different stages of selection. In the first stage, 10 cars will be chosen and in the second stage, a 60 member-panel has to test-drive each car to decide the winner.

In the final voting, each member is given 25 points and they have to give 10 points to one of the 10 cars, then spread the rest of 15 points between 4 more cars freely. In theory, the top points should be 10×60=600 and the car with the highest points gets the car of the year award.

Last year, it went to Honda Fit with 374 points. The reason was as follows: “Keeping the last generation’s high performance in basic functions, it enhanced its capabilities in everything from its utility features, ride quality, steering to environmental capability which is required for modern cars. This car has a quality and attractiveness recognised anywhere in the world”.

Here is a list of the cars which have won the award:

27th (2006-2007) Toyota Lexus LS460
26th (2005-2006) Mazda Roadstar
25th (2004-2005) Honda Legend
24th (2003-2004) Subaru Legacy
23rd (2002-2003) Honda Accord / Accord Wagon
22nd (2001-2002) Honda Fit
21st (2000-2001) Honda Civic Ferio / Stream
20th (1999-2000) Toyota Vitz / Platz / Funcargo
19th (1998-1999) Toyota Altezza
18th (1997-1998) Toyota Prius

They are all good cars but some might not be so well-known. There is a jinx that once the car is chosen for the “Car of the Year” they will not sell but there are exceptions like Prius, Fit, Legacy, etc.

This year 41 Japanese & imported cars are nominated and I personally think that Toyota Crown/Crown Hybrid, Nissan GT-R, Honda Odyssey, Honda Freed, Daihatsu Tanto and BMW 1 Series should win. They are the ones I like and have had inquiries for by many customers.

The winner is…?


★ Japanese used car stock : http://jpctrade.com/stock/index.html
★ JPCTRADE Home page : http://jpctrade.com/
★ JPCTRADE Blog : http://jpctrade.blogspot.com/

(Editor)
JPC TRADE CO.,LTD.
Kato building 4F, 1-1-2 Furuishiba, Koto-ku, Tokyo
Japan Used Motor Vehicle Exporters Association (JUMVEA)
TEL : +81-3-5245-7731
FAX : +81-3-3643-4955

Colours of cars

What colour car would you choose?

Most of you might choose your favourite colour, but if you spend a bit of time thinking about what happens after you buy a car, you might have a different view about it.

Let’s think about the resale value of a car. In Japan, depending on the colour of a car, some get a high price and some do not. The reasons are as follows. When you buy a new car, you can choose the colour you want. However, when you want to buy a used car, they are already painted and the colours are already decided, you will have to find a particular one in the colour you want. Among all the population of driving age, about half buy used cars and the most popular colour is black or several other colours in their mind. On the other hand, it will be 10 – 20% at most who choose black when they buy them new. (
I am only guessing. ) So within all the used cars on the market, only 1 in 5 are black and half of the people who want used cars want the cars of that colour, it means with the balance of supply and demand, black cars will get a higher price than the same model cars in different colours. Not as much as black, white is also a sought-after colour in the used car market and white cars tend to sell at higher price.

What about other colours? Lately silver is firmly in the top place. When people buy new cars, most of them chose silver; because so many are around, there is no scarcity value. You will not have trouble finding one in this colour which is why there is not much increase in price because of the colour. How about blue, red, yellow, green and purple? Unless the manufacturers set one of these colours as the standard colour for their cars, such as red for Alfa Romeo and blue for Subaru Impreza, these colours are less popular. These colours are not something many people are after and bring the car prices down in most cases. Green is the colour which can bring the car price dramatically down. (I personally like the colour…)

It also depends on the combination of the colour & car model. Cars like Mercedes Benz, BMW and Lexus, when you compare the one in black and other colours, the difference in the price is more significant than normal Japanese cars. I think black adds charm to these expensive cars and other colours just do not have the same effect.

However, I can only say this about Japan. People with different cultural background have a different image towards colours. In our neighbouring country Korea, according to a dealer who trades with us, the most popular colour is black then silver. A Kazakhstan dealer said the most popular colour is also black but white (the second most popular colour in Japan) is the taboo colour general public are not allowed to use because of their religion (Islam), unless they are for special occasions such as weddings. What is it like in your country?

Lastly, not from a used car resale perspective but let me talk about the colours from a standpoint of maintenance after purchase. Black has the disadvantage of showing dirt & scratches easily. It costs time & money to keep a black car clean all the time. White cars can show dirt but cover scratches and because the white paint dries harder it will not get scratches easily. The colour which least shows dirt & scratches is silver and is popular for people who do not have a chance to wash their cars very often.

How was it? Was this useful information? So next time, think what colour is the most popular in your country before you buy a new car.


★ Japanese used car stock : http://jpctrade.com/stock/index.html
★ JPCTRADE Home page : http://jpctrade.com/
★ JPCTRADE Blog : http://jpctrade.blogspot.com/

(Editor)
JPC TRADE CO.,LTD.
Kato building 4F, 1-1-2 Furuishiba, Koto-ku, Tokyo
Japan Used Motor Vehicle Exporters Association (JUMVEA)
TEL : +81-3-5245-7731
FAX : +81-3-3643-4955