Smaller cars seeing increased demand at Japanese auctions

Prices of used cars with small engines are seeing increased demand in auctions held in Japan recently. Customers are demanding smaller cars with more efficient engines ever since the local governments have reduced taxes on such vehicles. Prices of cars with 1350 cc engines are fetching higher prices as compared to cars with 1500cc engines. Taxes on cars with 1350 cc engines produced between 2007 and 2010 were taxed using $5000 CIF value while cars with larger engines were taxed higher by the Customs Department and Directorate of Road Transport.

Due to this disparity in taxation between smaller engines and larger engines customers were showing preference for smaller cars and this has been the reason why larger cars be larger engines are not selling for much higher prices at auctions. Cheaper cars in a good condition come up for auction sooner.

The Japanese Automotive Industry is the largest used car selling market in the world. One reason for this is that competition is intense for manufacturing new and innovative designs and cars are in auction every month. Demand for new cars in the Japanese market is increasing while demands for used Japanese cars are increasing in the markets.