In this article we will explain the way how the price for engine is formed here in Japan.
Most engines comes from the dismantled vehicles purchased from Japanese used car auctions. The total prices for the engine are formed from the difference of all costs and income.
Costs
- Car price in auction
- Auction fee
- Transportation to dismantling yard
- Recycle fee
- Dismantling fee
- * 10% of the auction car price (it is not calculated, because this tax comes back after the container shipment)
Income
- Metal scrap
- Catalyst converter
- Tires
- Battery
- Airbags
- Freon
- Wiring
- Other parts
Now in details. Let us calculate the price for engine and gear K24A. This engine could be found in following cars:
HONDA ACCORD CL7
HONDA CR-V RD5
HONDA EDIX BE8
HONDA ELYSION RR1
HONDA ODYSSEY RB1
HONDA STEPWAGON RG3
The less expensive car among above cars is HONDA ODYSSEY RB1. Thus we will calculate the engine and gear price for this car.
COST
Car price in auction
The average price in auction for Honda Odyssey RB 1 in 50,000 JPY
If you want to get the prices for other cars, please check here https://www.akebono-akb.com/post/how-to-calculate-the-price-of-half-cut
Auction fee
Auction fee varies depending on auction and the purchase method. Average auction fee could be from 8,000 JPY to 14,000 JPY
If you want to know about auction fees in more details, please check: https://www.akebono-akb.com/post/three-types-of-purchase-in-used-car-auctions
Transportation to dismantling yard
Usually for dismantling are purchased in auctions based to close distance from the yard location. The average transportation 3,000 -15,000 JPY
Transportation and auction fees by Akebono https://docs.google.com/spreadsheets/d/1SpAH2wyLPBFo4D1AxONeL1_gjK56TlsdnMTgnos6vJM/edit?usp=sharing
Recycle fee
It is always mentioned in auction sheet. Average recycle fee is from 4,000 JPY to 14,000 JPY
If you want to know more about recycle fee, please check: https://www.akebono-akb.com/post/recycle-tax-in-japan
Dismantling fee
The average salary in Japan is 1,200 JPY per hour. One person can dismantle 4 cars per day. Thus labor cost for 1 car is 2,400 JPY
INCOME
Metal scrap
Metal scrap of the car body parts 20 JPY per kg. Average income is 10,000 JPY per unit
Metal scrap from the drive train 30 JPY per kg. Average income is 3,000 JPY per unit
Metal scrap from radiator 5 JPY per kg. Average income is 10 JPY per unit
More details here https://www.ohata.org/kakaku.html
Catalyst converter
The catalyst converter of Honda Odyssey RB1 is 30,000 JPY
For other units catalyst converter price , click https://www.akebono-akb.com/post/catalyst-price-list
Tires
Set of 4 tires with iron- 4,000 JPY
Set of 4 tires with alloy wheels- 10,000 JPY 18 inches AW or more- 30,000 JPY
Battery
1kg battery cost 48 JPY . The average income per one units is 800 JPY
Airbag
All airbags should be exploded and could not be shipped, so 2,480 JPY comes back from the recycle center.
Details, here http://www.jarp.org/duties/airbag/
Freon
Freon should be collected from car before dismantling, so 2,050 JPY comes back from the recycle center.
Details, here http://www.jarp.org/duties/freon/
Wiring
The cost of 1 kg of car wiring is 360 JPY. The average income per unit is 1,800 JPY
Other parts
Other parts could be sold from car, but not always, sometime the just scrapped.
Nose cut, two fenders and bonnet-8,000 JPY
Tail lights- 1,500 JPY
Rear bumper- 1,500 JPY
Two mirrors-1,500 JPY
Calculation
Thus total expenses - 95,000 JPY
Total income- 60,000 JPY
Company profit-5,000 JPY
K24A Engine and gear from Honda Odyssey RB1= 95,000- 60,000+5,000= 40,000 JPY
How about 1JZ-GTE, 2JZ-GTE, RB25DET engines?
The car prices for rear and popular JDM cars are expensive, starting from 600,000 JPY and more, how then the engine is calculated? In reality the prices for the discussed engines decided artificially and sold with the minus profit. Most companies from the USA, will not purchase engines if there is no one or two JDM expensive engines. So the exporters show low prices for these type of engines sell them with minus profit and get that profit from other engines in container. That is why, you can find 2JZ-JTE engine for 200,000 JPY in Japan, but the exporter will load only 1 or 2 engines.
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