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

There are approximately 20 confirmed victims, like Mr. A, who handed over their cars to G Company but never received payment for over a month. The total damages are estimated to reach 150 million yen. A common factor among the victims is that they all used a used car bulk appraisal website.

To clarify, a used car bulk appraisal site is a service that emerged around 2000 with the spread of the internet and smartphones. The pioneering platform in this space is said to be “Carview,” which launched in May of that year and is now operated by LINE Yahoo Corporation. For sellers, these platforms provide a convenient way to quickly compare purchase offers from multiple used car dealers.

Currently, about 30 such sites are in operation. Recent refinements, such as limiting negotiation rights to only the top three or four highest bidders, have reduced the overwhelming number of phone calls users receive, making the experience less stressful.

However, these services also come with pitfalls. In this case, Mr. A used the major appraisal site “MOTA.” This platform allows small local used car dealerships like G Company to register with only a simple screening process. By offering an unrealistically high bid, such dealers can easily claim the top spot in the appraisal rankings and secure negotiation rights. In fact, Mr. A stated that “G Company’s bid was 500,000 yen higher than the second-highest offer.”

Insurance does not cover the damages

In fact, when the author interviewed the 20 victims of G Company, all of them had used MOTA and stated, “I signed the purchase contract because the appraisal price was overwhelmingly high.” Additionally, G Company had nearly perfect ratings on other major used car listing sites such as Car Sensor. Believing it to be a trustworthy dealership, they signed contracts—only to have their cars taken without receiving any payment, and then receive notices from lawyers informing them of G Company’s bankruptcy proceedings.

Of course, the primary party at fault in this case is G Company. However, used car bulk appraisal sites mainly promote high-value purchases, while few emphasize safe and secure transactions. These services merely function as a platform connecting customers and businesses, meaning that in cases of non-payment like this, they typically do not offer compensation.

When asked about this situation, MOTA responded with the following statement:

“We take the issue of customers who have used our appraisal platform reporting damages extremely seriously. (Omitted) While we do not directly intervene in the financial status of our affiliated dealers, we are committed to strengthening our management system to prevent recurrence. We have also consulted with the police regarding this matter.”

Many victims have also reached out to the National Consumer Affairs Center and local consumer service centers, but fundamental resolutions remain difficult. The Japan Automobile Purchase Association has set up a consumer consultation office to handle buying and selling disputes, but since it is a self-regulatory organization, full support is only available to members.

Car purchase fraud is even more malicious than outright theft. This is because, in the case of theft, auto insurance (comprehensive coverage) may help recover the car’s value, whereas no insurance policy covers damages from purchase fraud.

To reiterate, the biggest issue in this case is that G Company failed to make payments. However, it is also essential to understand the risks that come with the convenience of bulk appraisal sites.