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Japanese Auction Grades: Top Things to Know Before Bidding

[25th Jul, 2024]
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If you're diving into the world of Japanese car auctions, you're about to discover a treasure trove of amazing vehicles. But before you get too excited and start bidding, there's one crucial thing you need to understand: auction grades. The Japanese auction grades can make or break your auction experience, so let's break them down in a way that’s easy to digest.

What Are Auction Grades?

Auction grades are like report cards for cars. They give you a quick snapshot of the vehicle’s condition without needing a deep dive into a ton of details. Each car gets a grade, usually from 0 to 5, with some additional letter grades thrown in for good measure. Think of it like school: the higher the grade, the better the car.

Basic Rundown of the Japanese Auction Grades  

 

- Grade S: The vehicle is less than 12 months old from the first registration date and travelled less than 10 000 km. The vehicle is in immaculate as new condition

- Grade 6: The vehicle is less than 36 months old from the first registration date and travelled less than 30 000 km. The vehicle is in immaculate as new condition

- Grade 5: The vehicle has travelled less than 50,000 km. It is in excellent condition, with minimal mileage. the exterior may have some minor scratches and marks.  

- Grade 4.5: The vehicle has travelled less than  100,000 km. The exterior generally has more minor scratches and marks than grade 5.

- Grade 4: The vehicle has travelled less than 150,000km. The exterior has some scratches/scraps and possibly minor dents. Used, but well-maintained. Expect minor scratches or dents, nothing major.

- Grade 3.5: The exterior has some noticeable scratches/scrapes and/or dents; may contain rust or corrosion. This grade will require some repairs. Showing its age a bit more. Some wear and tear, but still a solid vehicle. 

- Grade 3: The exterior has more noticeable large scratches/scraps, paint blemishes, and/or large dents. This grade will generally require more repairs than a 3.5 grade. Noticeable wear. Might need some repairs, but nothing too crazy. 

- Grade 2: Rough shape. Significant wear and tear, potentially some mechanical issues. Very poor condition, save up for something better.

- Grade 1: Major modifications or damage. Could be a custom car or one that's been in an accident. Shows substantial engine or body damage, flood damage, or fire extinguisher damage.

- Grade 0: For parts or serious restoration projects only.

- RA: Minor accident vehicle to which the damage has been repaired.

- R: More substantial accident vehicle to which the damage has been repaired

*** - accident car or “As it is condition”; Engine may no longer work 

Here are the Japanese auction grades explained:  



 

Codes Used for the Vehicle's Interior

Here’s a quick guide to the interior condition ratings of the vehicle:

- A: The vehicle interior is as new.

- B: The vehicle interior is in excellent condition, may contain minor wear mark, may require light cleaning.

- C: The vehicle interior is in average condition and may contain cigarette burns, torn, upholstery, screw holes, cracked dash, glue. Interior will require cleaning.

- D: The vehicle interior is in poor condition, worse than 3 and will require repair and heavy cleaning. Interior may smell.

- E: The vehicle interior is in very poor condition and will require extensive repair. Interior may smell.

Codes Used for the Issues with Vehicle's Exterior

Here are the codes used to indicate various types of damage or issues with the vehicle's exterior


- A:  Scratch or crack ; 

A1  2-3 cm , A2 < 10cm ; A3 >  10cm

- C: Corrosion (bad rust)

- S:  Rust

- U: Dent;

U1 dimple, U2  <  10cm ; U3 >  10cm; 

B is sometimes used instead of U

- AU: Scratch and Dent; 

can be combined with numbers;

- W1: Repainted as good as new condition.

- W2: Repainted and repainted in good condition

- W3: Repainted but the surface finish is bad

- Y:  Crack ;

  Y1  2-3 cm , Y2 < 10cm ; Y3 >  10cm

- X: Parts exchange need

- XX: Parts exchange history

 

Car frame chassis parts name: 

 

 

Frame: The main structure of the vehicle that supports all other components, including the engine, transmission, and body panels.

Cross Member: A structural component that connects the left and right sides of the vehicle's frame, providing additional rigidity and support.

Front Inside Panel: The inner panels located at the front of the vehicle, often part of the engine bay or firewall that separates the engine compartment from the passenger cabin.

Radiator Core Support: The framework that holds the radiator in place, usually located at the front of the vehicle, and may also support other components like the headlights and grille.

Dash Panel: The structural panel located behind the dashboard in the interior of the vehicle, providing mounting points for the dashboard, steering column, and other interior components.

Roof Panel: The top panel of the vehicle that forms the roof, providing structural integrity and protection from the elements.

Floor Panel: The panels that make up the floor of the vehicle's cabin, providing a base for the seats, carpeting, and other interior features.

Trunk Floor Panel: The panel that forms the floor of the trunk or cargo area, providing a base for storing items.

Key Factors to Consider When Evaluating Japanese Auction Grades

1. Inspect the Inspection Sheets

Each auctioned car comes with an inspection sheet, detailing the car’s condition beyond the grade. This sheet is your best friend. It includes notes on scratches, dents, paintwork, and any other quirks. Don’t skip this step! The sheet also contains a diagram of the car, marking areas with damage or repairs. This visual representation helps you quickly identify any potential issues.

2. Mileage Matters

Auction grades consider mileage, but it's worth noting separately. A Grade 4 car with high mileage might not be as attractive as a Grade 3 with low mileage. Balance the grade with the odometer reading to make an informed decision. Lower mileage generally indicates less wear and tear, but it’s also important to consider how the car was driven. A high-mileage car used primarily on highways might be in better shape than a low-mileage car used for short, stop-and-go trips.

3. Beware of the Grade Inflation

Not all auction houses grade the same way. Some might be more generous with their grades. It’s like when you think you aced a test because it was easy, but then you realize everyone got an A. Look for trusted auction houses with consistent grading standards. Reading reviews and testimonials from other buyers can help you identify which auction houses are reliable.

4. Get a Second Opinion

If you’re new to this, consider getting help from a professional. Many companies specialize in assisting with Japanese car auction sites and can provide invaluable insights. They can spot discrepancies and help you avoid a bad deal. These experts often have experience dealing with multiple auction houses and can provide you with a more accurate assessment of a vehicle's condition.

5. Know Your Priorities

What matters most to you? A pristine exterior? Low mileage? A spotless interior? Know your priorities and use the auction grades to filter your options accordingly. Each grade provides different insights, so decide what's most important for your purchase. If you’re looking for a project car to modify, a lower grade might be acceptable. But if you want a reliable daily driver, aim for higher grades.

6. Watch for Red Flags

Be wary of cars with high grades but suspiciously low prices. It could be a sign of hidden issues. Always cross-reference the grade with the inspection sheet and, if possible, get an on-the-ground inspection. Look out for inconsistencies in the auction sheet, such as a high grade but numerous minor issues noted. This could indicate that the car was quickly cleaned up for auction but still has underlying problems.

7. Stay Informed

Auction grades are crucial, but they’re just one part of the puzzle. Check this auction calendar from Tokyo Carz. Keep learning about the auction process, the specific makes and models you’re interested in, and market trends. The more informed you are, the better your chances of snagging a great deal. Join forums, read blogs, and follow social media groups focused on Japanese car auctions to stay updated.

8. The Role of Exterior and Interior Grades

While the overall auction grade is important, don’t overlook the specific grades for the car's exterior and interior. A car with a high overall grade might have a lower interior grade, meaning the inside is worn or damaged. Conversely, a car with a pristine interior but a few exterior blemishes might be a great find if you’re willing to invest in some cosmetic repairs.

9. Understanding Auction Terminology

Familiarize yourself with common terms used in Japanese car auctions. Terms like "warranty void," "service history," and "export certificate" can provide additional insights into the vehicle's condition and history. Knowing these terms will help you better understand the auction sheets and make more informed decisions.

10. Know the Auction House's Reputation

Not all auction houses are created equal. Some have stricter grading standards, better customer service, and more detailed inspection reports. Do some research to find auction houses with a good reputation. This can save you from potential headaches and ensure you’re getting a car that meets your expectations.

 

How to Bid Strategically

Understanding auction grades is essential, but knowing how to bid is equally important. Set a budget and stick to it. Keep an eye on the bidding process and avoid getting caught up in the excitement. Remember, there will always be another auction, so don’t feel pressured to overbid on a car.

The Value of Patience

Patience is key when participating in Japanese car auctions. It might take several attempts to find the perfect car that meets your criteria. Don’t rush the process. Take your time to review each car’s grade, inspection sheet, and additional details. Patience will pay off in the long run.

 

Final Thoughts

Understanding the Japanese auction grades is like having a cheat sheet for acing the car auction game. Know how to buy from an auction, use the auction grades wisely, balance them with other information, and you'll be driving off with your dream car in no time.

Ready to dive into Japanese car auctions? Before you start bidding, get to know the crucial details about auction grades. Visit TokyoCarZ.com's inventory now!