The Auction Arbitrage Secret – A Review

The Auction Arbitrage Secret is not the first e-book to be produced on the subject of arbitrage selling using online auction sites. However, it does differ from some of the other books on the subject by the fact that it is written by someone who practices what he preaches and makes a good living following his own methods. Peter Bruckshaw buys and sells laptops, iPods, jewelry and many other products on eBay and obviously knows what he is writing about.

The term arbitrage was originally used in the financial world but more recently has also become associated with horse race betting on sites such as Betfair. It is now becoming popularly and sometimes incorrectly used to describe buying and selling on sites such as eBay. The basics of true arbitrage are where you get yourself in the position that you cannot possibly lose money on a transaction.

When anyone talks about arbitrage in respect of online auctions what they are talking about is buying at one low price and selling at another higher one. This is not true arbitrage because whenever you buy anything there is always a risk that you may not be able to sell it. However, having said that, the odds are very much in your favor that you will profit from this type of trading.

Peter maintains it is very easy to set up an auction arbitrage business as all that is required is obviously an eBay and PayPal accounts and a sniper software program which will make bids on your behalf just as the auction is closing. You will also require some capital to make your first few purchases. It is possible to purchase suitable arbitrage products both offline and from eBay or other online auction sites. In the Auction Arbitrage Secrets you are given a step by step example showing how he purchased a printer for £45 and then sold it on eBay for £127.

This 79 page e-book is full of useful advice for anyone wishing to operate in the same way as Peter. On the downside I do not believe that the method is true arbitrage or in fact a “secret”. People have been buying items and selling them for more than they paid for them since trading began. It is a well written e-book which is full of helpful advice and information which if followed could help anyone wanting to build a business selling products online.

Japanese Car Auction Inspection Reports Demystified

Car auctions in Japan are a great way for car importers around the world to source good quality, low mileage cars and other used vehicles at great prices.

However, in order to make the most of the opportunities these Japanese car auctions give you as a car dealer, you have to make sure that you understand the car inspection reports. As a well-informed buyer, you can make sure you sift out the gold and avoid costly mistakes.

In this article, we will look together at who makes these auction inspection reports and what you can find in them.

If you are at at serious about buying cars from car auctions in Japan, you need to read on.

Quick Primer: What are these Japanese Car Auctions?

There are about 86 different auction locations in Japan. A typical day will see anything from about 7,000 to over 40,000 used cars and other vehicles sold at these auctions all around the country.

A good Japanese car exporter will give his customers access to all these auctions through an online system. You may be a continent or two away from Japan, and yet sit down in front of your computer and tap right into this huge selection of RHD and LHD cars right away.

Enter a bid at the click of a mouse, and let the car exporter in Japan handle the rest. A few weeks later the car will be arriving at the port for you to pick up.

Used Car Inspections at Japanese Car Auctions

Car auctions in Japan employ seasoned mechanics to inspect all the vehicles they sell. These inspectors work on site in the case of most auctions, or off site at car dealerships in the exceptional case of Aucnet.

The auction inspection covers every aspect of the car, from mechanical areas and chassis, to the exterior and interior condition. The car auction inspectors are thorough in their approach, with the only caveats being that they do not drive the car at any more than parking lot speeds, and obviously they cannot dismantle the vehicle to check out really hard-to-reach places.

The Auction Inspector’s Report

The car auction inspector write his notes on the o-kushon hyo (auction sheet). He will use a combination of scoring systems, written descriptions and a diagram of the exterior to give readers a good idea of the condition of the used car.

Overall Auction Grade

Car auctions in Japan assign an overall grade to each of the cars entered in the weekly auction.

I do not recommend that you rely solely on this grade when you consider whether to enter a bid or not. You will need to check the other detailed information that the inspector has written on the auction sheet as well.

(A good Japanese car exporter will be able to give you a professional translation of these details.)

That said, the overall auction grade has a role to play in helping you narrow down the field of potential bidding candidates. Here is a quick summary of the different grades:

Grades 7, 8, 9 or S – These refer to brand new cars with only delivery mileage.

Grade 6 – This grade can sometimes be equivalent to the grades above, but cars with this auction grade will usually have a little more than just delivery mileage.

Grade 5 – These are vehicles in superb condition, very close to brand new standard, but with several thousand kilometers on the odometer.

Grade 4.5 – A car in excellent condition, but with up to a few tens of thousands of kilometers on the clock.

Grade 4 – A good, solid car usually having less than 100,000 km on the clock.

Grade 3.5 – A higher mileage vehicle or one which will need some work to clean up.

Grade 3 – Either a very high mileage car or one which is generally rough.

Grade 2 – Very rough vehicles usually with corrosion holes being the reason for this low grade.

Grade 1 – Usually a heavily modified car which has had a different engine or transmission fitted, or which has an aftermarket turbo charger. Other possibilities are used cars with flood or fire extinguisher damage.

Grade R, RA, A and 0 (zero) – These are cars that have had some kind of accident repairs. At one end of the scale the repairs will be a single panel replaced due a minor parking ding, whereas at the other extreme there are vehicles that must have rolled in an accident which have had almost every panel replaced.

Ungraded vehicles – These are sold as-is by the auction with no or almost no information about their condition. As such they are very risky and can result in escalating additional costs if they cannot drive or move.

Some of these grades are more common than others. For example, grade 3.5 and 4 used cars will make up about 50% of any given day’s auction, whereas there will only be a handful of grade 1 cars on the same day.

Interior and Exterior Grades

Japanese car auction inspectors assign letters to indicate the interior and (sometimes) exterior condition of the car. Again, these are very broad designations, just like the overall auction grading, and it is really important to read the details of the inspectors’ comments to get a full picture of the condition.

Essentially, “B” is considered “average condition, considering the age and mileage of the car”. So an interior grading of “A” means that the interior is above average, and if it is “C” then it is below average.

The “Car Map”

This is a diagram of the exterior of the car, and is usually found at the bottom right corner of the auction sheet.

The auction inspector will mark this with a combination of letters and numbers to indicate damage to the outside of the vehicle.

Here are some basic designations:

A = scratch

U = dent

S = rust (from the Japanese word sabi)

C = corrosion

W = unevenness in the panel (usually caused by panel beating)

These letters are also usually followed by a number to indicate the severity. So “1” is the least severe, and “4” is the most severe. In practice, the Japanese are so fastidious about these things that something like “A1”, which means the smallest scratch, is really barely visible to the eye.

Japanese Car Auction Inspectors’ Comments

In addition to the above, the inspector also will write comments about the used car as he reviews it. Obviously, the higher grade the car is, the less likely it is to have extra information written about it. So a grade 3 car will have many more comments than a grade 5 car.

The exception to this can be cars that have a large number of modifications and aftermarket parts fitted that the inspector then lists on the auction sheet.

Although it may seem that the overall grade, the interior and exterior grades and the car map give you enough information in order to place a bid, I strongly advise buyers to make sure that they get these comments professionally translated before they make the final decision to bid.

A grade 5 or above car may hold no surprises, but with anything below that it is possible that the inspector has written something which could influence your decision to go ahead with a bid or not. This is why it is very important to look for a Japanese car exporter who offers professional-quality translations of auction sheets.

Concluding Remarks

Car auctions in Japan offer a great selection of used cars to source at good prices, and the auction inspection regime means that you can get a good, detailed picture of the condition of any vehicle prior to bidding.

Although it may seem daunting to be buying used cars from halfway around the world, these Japanese car auction inspection reports make the process of finding good vehicles easier and more reliable.

Introduction to Auction Websites

An auction website is one which provides merchandise or services to buyers that make online payments for the goods bought. The goods or services may come from individuals or commercial enterprises. The process of auctioning on the website generally involves the use of complex auction software for instantly recording the bids and notifying the bidders if their bid matched or went beyond the expected price.

Before the Internet or the websites became popular, auctions would be conducted at a predefined place. Though participants could send their bids via a fax or telephone, they all needed to connect straightway to the location where the auction was organized. The auctioning of antique and pieces of art from dealers and estates is a very common feature with auction houses. These days, it is also a common feature to auction items left over in the places of storage, confiscated goods, goods collected by the law enforcing agencies, and properties seized as a result of foreclosures. At times, even individuals may auction household gadgets, goods and furniture etc.

You can find some normal types of online auctions, though there are many format for website auctions. Some online auction websites are highly popular, and they have earned a good reputation by offering a large assortment of items. Apart from the variety of goods offered, they have gained considerable popularity mainly because of the secured bidding system they provide. This was done by conducting a systematic investigation and prosecution of the fake sellers and buyer, and protecting the private data of their customers.

An auction in English format is most frequently used for managing online auctions. The process of auctioning is simple. A lone item is offered for sale, and the person who bids the most buys the item. Dutch auctions are very popular with companies that want to sell a number of identical items. In this case, the price for all items is kept the same. This price is equal to the highest bid that the company received. Everybody is required to pay the same amount.The auction comes to an end when the entire stock of that particular item is finished.

Three formats for online auctions are the most popular. One such format the one is where the goods are sold during real-time auctions. This format is the closest to the usual auctioning system, where the participant needs to be present. Normally, this system follows broadcasts from a real auction house. Usually, pre registration is needed for participating in such an auction.

Person-to-person sale is another preferred style of auction. Most often it doesn’t involve any professional sellers. Here, common folks are offering goods like household items, books, clothes and, sometimes, even cars for sale. The one making the highest bid buys the item. Most users consider this kind of online auction worthwhile, offering good deals.

Many retailer and wholesalers go for commercial auctions when they want to get rid of a large number of refurbished items. Surplus goods and also items which are not in production anymore are often available at very attractive prices through such auctions. However, often the buyer has to buy the goods according to the terms and conditions of the sellers, and trust the sellers for the accuracy in the description of the goods.