Used engine price formation Japan



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.


#jdmengine #jdm #usedengine #usedenginefromJapan #usedenginerpices #Akebono




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