If you purchased a car by mistake, there is a way to pay penalty and cancel the purchased car in auction. Most auctions give 1 hour time after purchase to cancel your purchase, some gives 30 minutes and some give 2 hours but not more. If you couldn't submit the cancellation form within the time frame provided by auction, you must pay for the car and then re-auction it.
Above the sample of cancel request to auction house.
If you cancel the purchased car within provided time frame, you have to pay :
- Your contract fee (auction fee)
- Seller contract fee (auction fee)
In most cases total amount varies depending on auction and car price and it could be 70,000 - 85,000 JPY. Please note that our company Akebono charges real amount to the customer if it is his miss, but most exporters make profit out of cancellation and charge for instance 100,000 JPY. Before starting deal with exporter one should discuss these issues.
- In some auctions if you purchased car by negotiation you can not cancel it
- If you can cancel your purchased car after negotiation, the penalty is higher rather to that purchased in usual way;
- Auction cancel expenses for trucks is higher comparing that of usual cars.
It is ridiculous, but some time penalty fee is higher than the car price itself. For instance, you purchased car for 50,000 JPY and the cancelation expenses are 80,000 JPY. In this case it is better to re-auction purchased unit rather then cancel it.
It is how invoice from auction for cancellation looks like.
In above case:
Penalty- 50,000 JPY (it goes to seller of the car, if car was cancelled by purchaser)
Contract fee for seller- 9,000 JPY +10% (900 JPY) (it goes to auction)
Contract fee for purchaser - 22,000 JPY +10% (2,200 JPY) (it goes to auction)
Read more about auctions: https://www.akebono-akb.com/blog