The yen’s historic decline is drawing more overseas buyers to Japan’s used-car market, driving up prices already inflated due to inventory shortages, said USS Co., the country’s biggest auction operator.
Parts shortages have led automakers around the world to cut production and car buyers are unsure when they’ll be able to get their hands on new vehicles, USS President Dai Seta said in an interview. That’s fueling more interest in pre-owned automobiles, he said.
On top of that, with the yen recently hitting 24-year lows, Seta says he’s hearing from buyers who export overseas that customers are increasingly clamoring for what they see as "major” yen-denominated discounts. USS handles around 40% of inter-dealer used-car auction transactions in Japan.