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 | Auctions Vs. Stock |
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| Save Thousands by Using Auto House Auction Agent Service!!! |
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| Click on a Photo to See the Savings! |
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| Auctions : |
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| Merit | Many vehicles -- Over 150,000 vehicles weekly |
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| Merit | Less risky to purchase a lemon : All vehicles are inspected by THIRD PARTIES, i.e. the auction houses, between a buyer and a seller. |
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| Merit | No risk to have stock |
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| Demerit | Takes time |
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| Purchasing a vehicle from auctions through an agent |
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| Vehicle's cost + Agent Fee = Retail Price |
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| Stock : |
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| Merit | Loss waiting -- As long as a dealer has the car you want. |
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| Demerit | Having stock creates expense and dead stock losses : |
| 1) A stock yard is required to store accumulated stock. |
| 2) Dead stock losses are added to the retail prices. |
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| Demerit | Higher risk to purchase a lemon : |
| 1) Buyers can only rely on a seller's statement. |
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| Purchasing a vehicle from stock |
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| Vehicle's cost + | Expense for Storage | + | Dead Stock Losses | + | Company's Profit | = | Retail Price |
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What is the risk to have stock? |
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Dealers decide on and purchase their stock vehicles based upon the probability of the vehicle's being sold to their customers. However, it is impossible for dealers to sell all of their purchased vehicles at retail prices. |
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Generally, approx. 70% of their stock are sold for retail and the remaining 30% becomes dead stock, which is later sold at auction. The expense for storage, inland freights, auction fees, and the decreasing value for these vehicles incur a loss of, at least, 100,000JPY per vehicle. These losses are added to the retail prices. |
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For example, a dealer purchased a vehicle for 1,000,000JPY at an auction to add to their stock. The dealer needed to pay the successful auction fee of 12,000JPY and also the inland freight fee, 10,000JPY, for transporting the vehicle from the auction house to their stock yard. |
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Then, the dealer held this vehicle as stock for four months but this vehicle went unsold. |
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After that, the dealer decided to sell this dead stock at auction in order to purchase a new stock vehicle. The auction fee of 10,000JPY, the completed auction transaction fee of 10,000JPY, and the inland freight cost of 10,000JPY for transporting the vehicle from their stock yard to an auction house needed to be paid by the dealer. |
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Finally, the dealer had to sell this vehicle for 950,000JPY due to the this vehicle's lowering market price over the past four months. A selling loss of 50,000JPY was incurred due to the decreasing market price of the used vehicle. This dead stock vehicle incured a total loss of more than 100,000JPY. |
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 | The Most Reasonable Prices! |
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A Japanese Licensed Dealer Car Auction is a place where car dealers sell their trade-in cars and unwanted stock.
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This auction is also a place where car dealers purchase vehicles for retail sale.
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In this auction, all vehicles are dealt with using dealer's trade prices.
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A reasonable way to purchase a vehicle is to buy one from a user directly. HOWEVER, in reality this method can make matching your needs with the user's offer very difficult.
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So purchasing vehicles through a Japanese Licenced Car Dealer Auction is actually the MOST reasonable way to purchase vehicles in Japan.
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In our Auto House Auction Agent Service, we willing to disclose the dealer's trade prices, i.e. the past auction results, to you.
This information helps you to purchasing a vehicle at the BEST price.
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You can purchase your vehicles at dealer's trade prices through our agent service. Only an auction agent commision and a few charges are added.
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