The global used car market has seen unprecedented price increases over the past few years. From pandemic-related supply chain disruptions to rising shipping costs and currency fluctuations, several factors have combined to push prices higher worldwide.

In this article, we’ll explore why used car prices have been so high, whether they might drop in 2025, and what overseas buyers can do to make smart purchasing decisions.

Why Used Car Prices Have Been So High？

Global supply chain disruption and shortage of new cars

The COVID-19 pandemic caused major disruptions in global manufacturing and logistics networks. Shortages of semiconductor chips delayed new car production, pushing consumers toward the used car market instead. Even as factories resumed operations, demand continued to outpace supply, keeping prices elevated.

Increased global demand for Japanese used cars

Japan’s reputation for high-quality, well-maintained used vehicles has driven strong international demand. Buyers from Africa, the Middle East, and Oceania are turning to Japanese auctions and exporters more than ever before. As a result, competition has intensified — and so have auction prices.

Currency fluctuations and shipping costs

Currency exchange rates, especially the weak Japanese yen, have influenced export pricing. While a weaker yen benefits foreign buyers by lowering base prices, rising global shipping costs and fuel surcharges have offset much of this advantage. Additionally, port congestion and container shortages have made logistics more expensive than in pre-pandemic years.

Will Used Car Prices Drop in 2025?

According to recent industry insights, a gradual price correction may occur in 2025 as new car production normalizes and global supply chains stabilize. However, experts predict that prices will not return to pre-2020 levels due to ongoing demand for reliable, fuel-efficient vehicles.

In particular, Japanese used cars are expected to remain strong in overseas markets. Their combination of high quality, durability, and value retention continues to attract importers worldwide. For buyers, this means acting quickly when favorable price windows appear — before market demand pushes prices up again.

How Japan’s Used Car Market Differs from Other Countries

Strict vehicle inspection (Shaken) and high-quality supply

Japan’s Shaken (車検) inspection system ensures that all vehicles meet strict maintenance and safety standards. As a result, cars on the used market are typically in excellent condition, even after years of use. This provides international buyers with a steady supply of dependable vehicles.

Export demand from Africa, Middle East, and Oceania

Japanese used cars are exported to more than 150 countries, with particularly high demand from Kenya, Tanzania, the UAE, and New Zealand. These regions rely heavily on Japan’s export ecosystem, which offers a balance of quality and affordability unmatched by other markets.

Auction-based pricing system in Japan

Unlike many countries where used car prices are set by dealerships, Japan operates a transparent auction system. Vehicles are sold through competitive bidding, ensuring fair market prices that reflect real-time demand. This mechanism keeps the market efficient and responsive to global trends.

What Buyers Should Do Before Prices Drop

Monitor auction and FOB price trends

Stay informed by tracking auction results, FOB prices, and shipping rates through trusted sources. Market data can help you identify timing opportunities and understand which models are becoming more or less in demand.

Consider total import cost, not just car price

When budgeting, remember to include shipping fees, customs duties, insurance, and inland transportation. Focusing solely on the vehicle’s auction price can lead to unexpected expenses later in the process.

Work with a trusted Japanese exporter

Partnering with an experienced exporter ensures smoother transactions, accurate documentation, and reduced risk. Reputable exporters provide condition reports, transparent invoices, and logistics support — essential for avoiding costly mistakes.

The Benefits of Importing Used Cars from Japan

1. Access to a wide selection of high-quality vehicles

From compact cars to SUVs and hybrid models, Japan offers one of the widest and most reliable inventories of used vehicles in the world.

2. Weakened yen offers better purchasing power

The ongoing weakness of the Japanese yen provides favorable exchange rates for overseas buyers, effectively reducing acquisition costs.

3. Reliable shipping and export infrastructure

Japan’s logistics network is highly developed, with efficient ports, streamlined customs procedures, and experienced shipping companies, ensuring on-time delivery.

4. Increasing global demand may push prices up again

As global economies recover, demand for dependable used cars is likely to rebound, potentially raising prices once more — another reason to act early.

5. Building long-term business relationships with Japanese exporters

Establishing partnerships with reliable Japanese exporters creates mutual trust and long-term trade opportunities, ensuring consistent vehicle supply and smoother operations.

Why Buy Japanese Used Cars from Sannou Freight Shipping

Expertise in Both Logistics and Car Export

Sannou Freight Shipping combines deep expertise in automotive export and international logistics, ensuring a seamless process from purchase to delivery.

Transparent Process from Purchase to Delivery

Our team provides clear communication, real-time updates, and transparent pricing at every stage — helping buyers make confident and informed decisions.

Tailored Support for African and Middle Eastern Markets

With extensive experience in African and Middle Eastern exports, we understand each country’s import regulations and market preferences, offering personalized logistics solutions for smooth clearance and delivery.

Summary

The used car market is slowly stabilizing, but prices remain influenced by global demand, logistics costs, and exchange rates. While a slight dip may occur in 2025, high-quality vehicles — especially from Japan — will continue to be in strong demand.

For overseas buyers, now is the time to plan strategically: track price trends, calculate total import costs, and partner with trusted exporters like Sannou Freight Shipping. With our comprehensive export management and regional expertise, we help you navigate market shifts and secure the best deals on Japanese used cars.