USS Co., Japan's largest used car auction company, said that due to a shortage of parts, the waiting time for new cars has become longer, and the recent depreciation of the yen has led to an increasing number of overseas buyers increasing their interest in Japanese used cars, pushing up prices have risen due to inventory shortages. Through May 2022, average USS auction bids have increased year-over-year for 12 consecutive months.
With the yen hitting a 24-year low recently, USS President Dai Seta said he has heard from buyers who buy cars and export them overseas that their customers are demanding yen-denominated prices.
Another reason for the rise in used car prices concerns Russia, the top destination for Japanese used car exports. While Russia has stopped importing and selling new cars due to sanctions, Japanese law allows the export of cars priced below 6 million yen to it. Demand for used cars in Russia is likely to rise, Seta said.
He also noted that buyers in places like the U.S. are increasingly interested in vintage Japanese cars.
Ryozo Minagawa, an analyst at SMBC Nikko Securities, said earlier this month that used car prices are likely to hit record highs as long as the shortage of cars continues.
