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COVID Auction Prices

July 29, 2020 By //  by Mark Cathcart Leave a Comment

There have been some odd trends recently in the Japanese vehicle auctions that have led our customers to wonder why prices are going up and down. Here are some thoughts on the fluctuations and what we might expect in the coming months:

We believe there are a few factors:

  1.  There was a period of lower prices when COVID-19 first hit due to importers in many countries halting business while watching to see what would happen.
  2.  The people that didn’t buy during that period may now be increasing demand because they saw the low prices and are also now urgently in need of stock. 
  3.  People in many countries are buying vehicles for commuting to avoid public transport (also affecting an increased demand).
  4.  Various fluctuations of currency (not necessarily JPY against US dollar or Euro, but also other currencies).
  5.  Perhaps less vehicles available (so supply low) due to the recent cheap prices (reluctance to sell during a low) and other factors (e.g. maybe less Japanese are selling their cars or buying new cars due to economical effects of COVID).

There are also holidays coming up in Japan, which usually sees a lower of number of vehicles. However we are still a few weeks away from that so it would be unusual to be seeing this effect this early).

Our team at Get Cars Japan hope for all of our customers that the seemingly higher price period recently witnessed is winding down and things will normalize in August.

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