What hidden fees are there for Japanese used cars?

Buying a used car from Japan can seem like a cheap and simple way to get a unique or high-quality vehicle. While the initial auction or listing price might look very attractive, the process of buying and exporting the car involves numerous fees that can quickly add up. These “hidden” costs are often not included in the advertised price and must be carefully budgeted to avoid expensive surprises.

Hidden Fees Before Export (In Japan)

These are the charges you pay to the Japanese seller, auction house, or exporter before the car even leaves Japan. They make up the difference between the car’s auction price and the FOB (Freight on Board) price.

1. Agent and Commission Fees

If you buy through an auction, you must use an export agent. This is not optional.

• Auction Success Fee/Bidding Fee: The fee the auction house charges for a successful bid. This is typically a flat rate (around ¥10,000 to ¥20,000 JPY).
• Exporter Commission/Agency Fee: This is the agent’s profit for handling the purchase, paperwork, and logistics. It can be a fixed rate (e.g., ¥70,000 JPY) or a percentage of the final auction price (e.g., 5% + a fixed fee). Always clarify the fee structure upfront.

2. Mandatory Japanese Paperwork and Handling

The car must be legally prepared for export.

• Deregistration Fee: The cost to officially remove the car from the Japanese registration system. This is mandatory for export.
• Customs Clearance/Forwarding Charge: The cost for the agent to prepare the export documents and clear the car with Japanese Customs at the port.
• Inland Transportation (Local Haulage): The fee to transport the car from the auction house or used Honda cars dealership to the port where it will be loaded onto the ship. This can vary widely depending on the distance, potentially ranging from ¥8,000 to ¥60,000 JPY.

3. Optional but Recommended Fees

• Pre-Purchase Inspection (PPI): While auction sheets provide detail, paying for an independent inspector to physically check the car on the auction site is highly recommended. This typically costs extra and helps avoid buying a car with hidden damage or mechanical problems.
• Marine Insurance: This protects your car against total loss or significant damage during the long ocean voyage. It’s often calculated as a percentage of the car’s total value but is not included in the basic shipping quote.

Hidden Fees After Export (At Destination)

These are the costs you pay once the car arrives in your home country. These fees are usually not included in the price quoted by the Japanese exporter.

1. Import Duties and Taxes

This is often the largest unexpected cost.

• Import Duty: Most countries charge a duty (tax) on the vehicle’s declared value. For example, in the US, cars are typically charged a 2.5% duty. However, trucks and specialized vehicles (like Kei trucks) can be subject to a much higher duty, sometimes up to 25% (known as the “Chicken Tax”).
• Local Sales Tax/VAT: You will have to pay your country’s local sales tax or Value Added Tax (VAT) when you register the vehicle. This is based on the car’s assessed value.

2. Destination and Handling Charges

These are local costs charged by the port and the shipping company’s local agent.

• Harbor Maintenance Fee (HMF): A small federal fee charged in the US (e.g., 0.125% of the value).
• Merchandise Processing Fee (MPF): Another US fee based on the value of the goods.
• Terminal Handling Charge (THC): The fee for unloading the car from the ship at the destination port.
• Demurrage/Storage Fees: If you fail to clear the car from the port within a specific “free time” (usually a few days), you will be charged daily storage fees, which can quickly become expensive.

3. Compliance and Modification Costs

Especially for cars less than 25 years old, meeting your country’s standards adds major costs.

• Safety and Emissions Compliance: Newer cars must be modified to meet your local safety (DOT) and emissions (EPA) standards. These modifications can cost thousands of dollars and may be complex.
• Inspection Fees: Your local government may require mandatory inspections for things like emissions, odometer verification, or biosecurity (cleaning to remove foreign pests/dirt).

4. Broker and Registration Fees

• Customs Broker Fee: While you can handle customs paperwork yourself, most people hire a customs broker. Their service fees (typically $200 to $500) save you time and prevent costly errors.
• Local Registration Fees: The cost to register the car, get new license plates, and transfer ownership in your name at your local motor vehicle department.

Always request a full, detailed FOB quote from your Japanese exporter and contact a local customs broker and your motor vehicle department for the most accurate estimate of the final costs.