Engine Failure after Three Days of Delivery,” “I Was Assured the Car Was a Certified Pre-Owned Car…” A Series of “Dark Side of Buying Troubles” in the Used Car Industry

Last December, the former Big Motor finally filed for bankruptcy. While the used car industry is under pressure to change, many dealers are still treating buyers in a questionable manner. Automotive journalist Kumiko Kato looks at the current state of the used car industry based on examples of “trouble with buyers.

On December 2 of last year, it was announced that BALM Corporation, the surviving company of the former Big Motor, had applied to the Tokyo District Court for the application of the Civil Rehabilitation Law. The total amount of debt is a staggering 83 billion yen at maximum.

The former Big Motor’s fraudulent claims for insurance benefits were uncovered in 2011, and FRIDAY has also pursued the actual fraudulent activities of the company, focusing on the “tire-punching video” and many others. The bankruptcy filing marks a milestone, but the roots of the problem may be deeper. However, the roots of the problem may go much deeper, as numerous allegations of fraud still linger in the used car industry as a whole. Since last October alone, the FSA has conducted on-site inspections of IDOM Corporation, the largest used car sales company in the industry, which operates Gulliver, Nextage, and Goodspeed, which is based in Nagoya City, Aichi Prefecture, and operates 44 stores nationwide.

All three companies, like the former Big Motor, are mainly involved in fraudulent insurance claims. In addition, Goodspeed also includes accounting irregularities.’ According to Goodspeed’s internal investigation report released in January 2012, it was clearly stated that sales were recorded in advance under the names of “false vehicle delivery” and “vehicle delivery tay,” and organizational involvement is also strongly suspected. The report also revealed the falsification of “vehicle delivery confirmation forms,” and the amount of sales recorded in advance since the fiscal year ended September 30, 2006 totaled approximately 6,000 cases, amounting to about 15 billion yen.

What is going on in the used car industry today? We take a closer look at the actual situation.

What I learned after buying a car at the former Big Motor

One year has passed since ITOCHU announced the acquisition of Big Motor in November 2011. In May 2012, the new company name “WECARS” was announced, and now the old Big Motor stores nationwide are replacing their signboards one after another. TV commercials have been running since the end of the year, and many of you may recognize the cheerful music of the commercials.

The author purchased a Suzuki Alto (450,000 yen) at the former Big Motor Shimonoseki store at the end of August 2012, and the total price exceeded 600,000 yen, including a 5-year warranty. The Shimonoseki store was the second store to be established by the former Big Motor after the Iwakuni store, the main store, and was the first store in Japan to have a large-scale sheet metal shop, making it a “long-established” store.

When it came time to buy a car, I noticed a “change. There was a move afoot to review the many irregularities that had been committed at the former Big Motor. For example

If there is a problem with the car, the purchase can be canceled until the day after delivery. There is no cancellation fee.

No additional charges for maintenance after purchase.

The customer can cut out unnecessary services and maintenance that used to be mandatory at the customer’s request.

The following points are important: ” Since October 1, 2011, under the guidance of the Fair Trade Council, used car prices have been displayed on a “total price” basis, which includes all expenses and other items, so the prices are clear at a glance, giving the impression of a cleaner market.

However, we still hear “suspicions” from other major used car dealers.