The Hidden Trap of Used Car Appraisal Sites: Unpaid 150M Yen Buyout

Troubles in the used car industry persist to this day. A fraudulent incident involving Company G in Iwate Prefecture at the end of last year revealed the pitfalls of bulk appraisal sites that connect customers with dealers. Automotive lifestyle journalist Kumiko Kato, who has been covering the used car sales industry for many years, reports on the issue.

Running off with cars through fraudulent practices

Even After the Bigmotor Scandal, Troubles in the Used Car Market Persist

Even after the series of scandals involving Bigmotor, issues surrounding used car transactions continue to arise. In December of last year, “G Company,” based in Morioka City, Iwate Prefecture, was involved in a fraudulent scheme where it purchased vehicles but failed to transfer payment to customers.

A victim, Mr. A, who had signed a sales contract with G Company, shared his distressing experience in an interview.

“In December of last year, I was looking to trade in my car and used a used car bulk appraisal site to find a buyer. That’s where I came across G Company. Their offer was overwhelming—50 million yen higher than the second-highest bid from another dealer—so I chose them without hesitation. The company’s owner explained, ‘It just so happens that we have a customer who urgently wants this car.’ That explanation made sense, as it justified the high price they were offering.

I prepared all the necessary documents for the title transfer as requested and handed over the vehicle by the specified date. The contract clearly stated that I would receive a payment of 3.5 million yen, so I naturally expected the money to arrive on the designated date.”

However, the payment never came.

“Even when the due date specified in the contract arrived, there was no sign of the money. The owner contacted me once to ask for a one-week extension, which I reluctantly agreed to. But then the payment deadline was postponed three times, and before I knew it, the year had ended.

Finally, he promised to make the payment by the end of January, so I even had him sign a written pledge. The owner insisted, ‘To prove my sincerity, you can even record this on video as evidence.’ That gave me hope that he would finally pay. But instead what I received while waiting for the payment was a ‘Notice of Representation’ from his lawyer.

The letter stated that the lawyer had been appointed by the owner and that he was filing for bankruptcy, meaning the payment for the car would not be made.”

It was later revealed that just hours before signing the pledge, the owner had already consulted his lawyer about filing for bankruptcy. Given the calculated nature of his actions, it’s hard not to suspect this was a planned bankruptcy.

G Company has since announced its closure. Later, Mr. A filed a criminal complaint with the Iwate Prefectural Police, which was accepted.