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Home » Direct Stock Japan Co., Ltd. Image research report on scrapped cars 2. Image of what happens to scrapped cars that are picked up

Direct Stock Japan Co., Ltd. Image research report on scrapped cars 2. Image of what happens to scrapped cars that are picked up

[Direct Stock Japan Co., Ltd.] [Image research report on scrapped cars 2.] Image of what happens to scrapped cars that are picked up
*View in browser* *Direct Stock Japan Co., Ltd.*
Press release: June 5, 2024
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[Image research report on scrapped cars 2.] Image of what happens to scrapped cars that are picked up
*An image survey on “What do you think happens to scrapped cars that are picked up by dealers?” Gap in perception between vendors and general users revealed*
Tattered Ace Cow Cow, a Hiace purchasing specialty store operated by Direct Stock Japan Co., Ltd. (https://directstock.co.jp/
) conducted a questionnaire survey on “what happens to scrapped cars after they are picked up” as the second part of their “image survey on scrapped cars”.
This survey revealed that there is a large gap in perception between dealers and general users regarding the image of what happens to scrapped cars after they are picked up.
Survey overview

– Survey target: People who live in Japan and have owned a car – Survey date: May
– Research agency: In-house research (internet research)
– Number of people surveyed: 200 people (see pie chart below for age groups) – Research report: https://directstock.co.jp/yusyutsu/haisya-2/; Survey target age group
  *In this survey, a scrapped car is defined as “a car that would not fetch a price even if you wanted to sell it, or would require a disposal fee.”
■Question content 1.
* “How do you think cars that are picked up by junkyards are disposed of?” * choices
– Dismantled and disposed of as scrap metal
– Reused as a used car
– Other (If you select Other, please specify)

[Result]
* Opinions of those who selected “Other” *
– 6 people (3%) remove reusable parts and dispose of the rest as scrap metal – 4 people (2%) exported overseas

[Considerations regarding the results of question 1]
The purpose of the survey was to investigate the image of what happens to scrapped cars (after they are picked up by a dealer).

In this survey, we intentionally did not include the keyword “export” in the options.

The reason for this is that by including the keyword “export”, even if the user did not originally know about it, there is a possibility that users who learn of this keyword for the first time will choose it, thinking “I had a chance to do that.” is.

As a result, even though the keyword “export” appeared in 2% of all other keywords for those who did not know anything about it, most people did not know that the majority of cars that were picked up as scrap cars were exported. I found out that there is no.

In 2023, the total number of cars exhibited at AA (auto auctions) nationwide will be approximately 8 million, while the total number of used cars exported in the same year will be 1.5 million. In other words, approximately 20% of all used cars currently in circulation in Japan are exported overseas, and there is a particularly strong tendency for old and over-mileage cars to be exported, so they are taken back as “junk cars”. It can be said that the proportion of exported cars in the total number of cars exported is even higher than that.

Of course, many used car dealers are generally aware of this, so the results clearly show how there is a gap in the image of “scrap cars” between general car users and dealers.

Regarding “reuse as a used car,” in this survey we define scrapped cars as “cars that can still be driven,” so we expected that a certain percentage would choose this option, but the overall percentage The result was a small 30%.

The results reconfirmed that the overwhelming majority of people have an image of “scrap cars” as “scrap cars”, even in this age of widespread internet usage.

■Question content 2.
* “Suppose you own the following car and want to dispose of it (or sell it). What kind of company would you sell it to?”
Vehicle: Hiace van, 2004 model (2020 model), mileage 300,000 km, diesel 2WD, 3000cc commercial van*
〇Choices
– Major purchasing specialty store
– Manufacturer-affiliated dealer
– Scrap car purchaser
– Other (If you select Other, please specify)
[Results]
* Opinions of those who selected “Other” *
– Exporter 1 person (0.5%)
[Considerations regarding the results of question content 2] From a previous survey conducted by our company, we found that there is a strong impression that cars will be scrapped after 20 years or 20 years. Naturally, the specific example given in response to this question was the Hiace, which has been around for 20 years and has traveled 300,000 km, with the premise that it is a car that most people would imagine would be scrapped.
Regarding question 1, we found that the overwhelming majority of people have the image that “junk cars” = “scrap metal.”
Based on this result, and with this option structure, we predicted that “junk car purchaser” would be the overwhelming majority before conducting the survey.

However, in the end, about half of them answered “major purchasing specialty store.”
It is inferred that one of the following factors may be the reason for this unexpected answer.

1. Even though the Hiace has been running for 20 years and 300,000 km, many people thought it would be sold at a high price, rather than being considered a “junk car.”
2. Even if it’s a junk car, I have the impression that a major buying specialist store will buy it for a reasonable price.
3. I don’t know much about the existence of junk car buying companies. I don’t have a good image.
We do not have a survey to find out which of the above actually apply, so we do not know the percentage of these cases.
However, based on the results of question 3, which will be explained later, it is expected that the percentage of respondents who answered 1 is quite low.

Probably, 2 and 3 dominate the overwhelming proportion, and we can imagine that many people have images of both 2 and 3.

Furthermore, similarly to question 1, only 1 out of 200 people answered “exporter.”
In fact, the Hiace van used as a specific example this time, aged 20 years and with 300,000 km, would most likely be exported overseas as is, provided it can still be driven without any breakdowns.

Of course, this is a fact that most used car dealers are aware of, so regarding question 2, we found that there is a significant gap in understanding between dealers and general users.

■Question 3.
* “How much sales price or disposal costs do you expect at the sales location you selected in question 2? If you think you can sell, +○○ yen, if you think disposal costs are necessary.
-Please answer ○○ yen. ”*
[Result]
Overall average value: +39,100 yen
[Considerations regarding the results of question 3]
The overwhelming majority of all answers (125 out of 200 people, 62.5%) answered 0 to +50,000 yen, and most people said that their Hiace van, which has been in use for 20 years and has traveled 300,000 km, will be scrapped. I understand that you are aware of this.

In question 2, we considered that many people choose to sell their cars to major purchasing specialty stores, even though they think they are junk cars, but in question 3, the overall average value is about +3. It is clear that the price of 90,000 yen is the basis for this.

In fact, if you search online for “junk car purchase”, you will be able to see a list of purchase prices by engine displacement from junk car buying companies. The displacement of the Hiace van is 2000cc to 3000cc, and if you refer to the price list of a scrapped car buying company, if you actually ask a scrapped car buying company to pick it up, it will cost at least 50,000 yen, and as high as 80,000 yen. It is expected that it will be sold at around yen.

According to the price list, if you go directly to a junk car purchase specialty store, you can sell it for nearly twice the price that a general user would imagine, but many people choose a major purchase specialty store. The survey results clearly show whether customers have high expectations for purchasing specialty stores.

In fact, the 20-year-old Hiace van used in this example, with 300,000 km on the clock, is actually quite a special car, and in the wholesale market between dealers, it generally sells for between 250,000 yen and 600,000 yen. It has been.
   The reason why the Hiace van, which from the general user’s point of view would be scrapped no matter how you look at it, costs such a high price when traded between dealers is because of “export”.

Used car dealers know that there is demand for Hiace vans overseas even when they are old, so they know that they can be traded at high prices in the wholesale market between dealers.

This gap between the two images also resulted in a clear numerical difference in question 3.

【Company Profile】
Company name: Direct Stock Japan Co., Ltd.
Location: 1-1-8 Hashiramoto, Takatsuki City, Osaka Prefecture Representative: Representative Director Tsuyoshi Yamamoto
Established: December 17, 2018
URL: https://directstock.co.jp/
Business content: Used car purchase, export, media management Official qualification: Secondhand goods sales license number 622032304053 Official member store of Japan Automobile Purchasing Association (JPUC): Terms and Conditions 21KH10053
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