Japanese car auctions: how UK and Irish dealers buy at USS and co.

How to read a Japanese auction sheet

The auction sheet is the reason Japanese auctions work at a distance. Conventions vary slightly between houses, but the structure is the same:

• Overall grade – S or 6 for nearly new, 5 and 4.5 for excellent cars with minimal marks, 4 for good cars with minor flaws, 3.5 for average cars with visible wear or small repairs needed, 3 and below for cars needing work. R and RA mark cars with repaired accident damage (RA usually indicates a lighter or better-documented repair); RA1 or similar codes mean unrepaired accident cars sold for parts.
• Interior grade – a letter from A (very good) through B (light wear) to C, D and E (stains, burns, heavy wear). Some houses add a separate exterior letter.
• Damage map – a car diagram with codes on each panel: A scratch, U dent, W wave or panel distortion, X panel needs replacing, XX panel already replaced, plus house-specific letters for rust, corrosion and paint flaws. A number after the letter (1 to 3) shows severity.
• Inspector's notes – handwritten Japanese covering warning lights, noises, smells, aftermarket parts, repainted panels and mileage queries. Always ask for a full translation, not a summary.
• Mileage and history – the sheet records the odometer reading and whether the mileage is guaranteed by the auction house; a mileage query mark is a red flag. Ask your exporter to run a Japan Car History Check on the chassis number before bidding.

Most importers aim for grade 4 and above, or 4.5 and above on cars under six years old. Grade 3.5 cars can be good value if the sheet explains why. The logic is the same one we apply to European condition reports in auction condition reports: read the whole report, price every defect and walk away when the notes don't add up.

What the exporter charges

Exporters earn their money in three places, and you should get all three in writing before you bid:

• Commission or buying fee – either a percentage of the hammer price (one Japanese exporter publishes 4.8% for private buyers; dealers negotiate lower) or a fixed fee per car.
• Japan-side costs – the auction house's own fees, inland transport to the port, export deregistration and the export certificate (the deregistration document you'll need to register the car at home), plus any recall work or storage.
• Freight and marine insurance – roll-on/roll-off from Yokohama, Nagoya, Osaka or Kobe to Southampton, Bristol or Dublin; one UK broker quotes shipping at around £1,500 per car.

Almost every exporter asks for a deposit before placing bids and for payment in full within days of winning, usually by bank transfer in yen. Build the exchange rate into your maximum bid: a 5% move in the yen is a 5% move in your cost price. How to set that maximum bid so it still leaves a margin is covered in car bid: how to set your maximum.

Landing the car in the UK: duty, VAT, NOVA and IVA

Once the car is on the ship, the UK sequence is fixed:

1. Customs clearance – your agent lodges the import declaration. Under the UK-Japan Comprehensive Economic Partnership Agreement the tariff on Japanese-origin cars reached 0% in 2026, but only with a statement on origin or importer's knowledge evidence; otherwise it is 10%. A Japanese-brand car built outside Japan does not qualify.
2. Import VAT at 20% on the car, freight, insurance and any duty. A VAT-registered dealer reclaims it, but a self-imported car cannot be sold under the second-hand margin scheme, so you charge VAT on the full selling price.
3. NOVA – notify HMRC within 14 days of arrival.
4. Approval – cars under 10 years old need Individual Vehicle Approval; typical changes are a mph speedometer and a correctly positioned rear fog light. Older cars need an MOT instead. Details are in individual vehicle approval without a CoC.
5. Registration – form V55/5 to DVLA with the export certificate, proof of approval, insurance and the first registration fee.

The full cost breakdown and the question of whether Japanese imports hold their value is in our guide to Japanese import cars. Before you bid, check what UK-supplied versions of the same model actually list for – the market price check shows whether the landed cost leaves room for a margin or just ties up cash.

Landing the car in Ireland

Ireland is right-hand drive too, which makes Japanese auctions a popular source of stock. The rules differ from the UK in three ways:

• Customs duty is 0% under the EU-Japan Economic Partnership Agreement with valid proof of Japanese origin, otherwise 10%.
• VAT is charged at 23% on the landed cost at import.
• VRT is due before registration and depends on the car's open market selling price, CO₂ and NOx; for most imports it is the single biggest cost after the car itself. How it is calculated and when an import still beats a UK-sourced car is in VRT on imported used cars.

Cars old enough need an NCT after registration. Irish dealers should also check mileage against the export certificate and the auction sheet, exactly as described in mileage checks on imported cars.

Japanese auctions compared with European dealer auctions

	Japanese auctions	European dealer auctions
Access	members only; buy via exporter	direct dealer accounts in most countries
Condition information	standardised sheet with grades and inspector's notes	varies by auction house; photos and damage reports
Mileage	typically low; auction-house mileage guarantee on many cars	mixed; ex-fleet cars with high mileage
Lead time	several weeks at sea plus approval and registration	days to two weeks
Costs on top of hammer price	commission, Japan fees, freight, duty, VAT, approval	buyer's fee, transport, VAT handling
Best for	right-hand-drive models never sold in Europe, low-mileage mainstream cars, enthusiast stock	fast stock turn, mainstream European models

For most UK and Irish dealers the right answer is a mix: European auctions for volume and Japanese auctions for cars that sell on rarity or condition. If you are new to auctions altogether, start with how to buy a car at auction and the checklist of what to do after winning a car auction.

Frequently asked questions

Can a UK dealer bid directly at Japanese car auctions?

No. Bidding is restricted to registered Japanese auction members. UK and Irish buyers use an exporter or buying agent who bids on their behalf, pays the auction house, deregisters the car and ships it.

What is a good auction grade?

Grade 4 and above means a good car with minor flaws; 4.5 and 5 are excellent. Grade 3.5 is average and can be fair value if the notes explain the marks. R and RA cars have repaired accident damage and should be priced accordingly.

How much does it cost to import a car from a Japanese auction to the UK?

On top of the hammer price budget for the exporter's commission, Japanese auction and transport fees, freight of roughly £1,500, 20% import VAT on the landed cost, duty of 0% or 10% depending on proof of origin, IVA for cars under 10 years old and DVLA registration.

How long does it take?

Allow several weeks at sea after payment, then customs clearance, NOVA within 14 days, approval and registration. Most dealers plan for two to three months from winning the bid to having the car on the forecourt.

Do Japanese imports qualify for the VAT margin scheme?

Not when you import them yourself. VAT is charged on the full selling price, so price the car with that in mind before you bid.