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MOTA and METI: Promoting Transparency in Used Car Transactions

In a significant move towards ensuring fair trade in the automotive sector, MOTA Co., Ltd., a company based in Minato, Tokyo, hosted a special discussion with Daichi Horie, Deputy Director of the Automobile Division in the Ministry of Economy, Trade, and Industry (METI). This session revolved around the theme of "Enhancing Transparency in Used Car Transactions through Payment Mechanisms."

Background of the Discussion: Issues in the Used Car Market

The current used car market faces persistent challenges, particularly concerning payment discrepancies post-vehicle delivery. These longstanding practices have led to cases of payment defaults, which undermine consumer trust and have become a pressing issue for the industry. To address these concerns, METI has taken proactive steps, including urging the Japan Used Car Purchasing Association (JPUC) to implement stringent measures concerning advertisement standards and member company conduct. Furthermore, they have sought collaboration to establish a framework aimed at protecting consumers from potential transaction pitfalls.

The market has been heavily reliant on the ethical standards of dealers, leading to increased concerns about delayed payments and fraudulent dealings. This reality has prompted calls for establishing a more robust structural system to mitigate these inevitable risks.

Highlights from the Special Discussion: Escrow Services as a Solution

During the dialogue, significant emphasis was placed on developing a framework that prevents transaction failures. The discussion highlighted the following key areas:

• - Third-Party Mediation for Transaction Transparency: Utilizing an escrow payment framework, where MOTA acts as a neutral intermediary, provides buyers and sellers with assurance. This method diminishes dependency on dealer integrity and guarantees a secure trading process.

• - MOTA's Initiatives with JPUC: MOTA outlined its "Anshin Payment" system, an escrow solution designed to enhance transaction safety. They discussed integrating this service with JPUC's existing measures, such as the certification program for reputable dealerships, to bolster consumer protection significantly.

• - METI’s Endorsement of a Non-Moral Based System: Horie from METI acknowledged and praised the private sector’s initiative to foster transparency, stating that a shift towards structural safeguards aligns with the broader policy objectives of the ministry.

Escrow Services: Anshin Payment Solution

MOTA's developed "Anshin Payment" service serves as a secure escrow mechanism operating between car dealerships and consumers. The unique features of this system include:

• - Separation of Payments: Before any vehicle ownership transfer, MOTA temporarily holds funds, ensuring financial security for the consumer.

• - Assured Ownership Transfer: In cases of outstanding loans, MOTA facilitates loan repayment proceedings, ensuring the vehicle title can be transferred without complications.

• - Real-Time Status Monitoring: The system allows customers, dealers, and MOTA to track payment statuses and vehicle locations online, enhancing overall transparency.

Insights from METI’s Horie

Recognizing the integral role used cars play in consumers' lives, Horie emphasized the importance of solving post-delivery payment issues, which could otherwise erode consumer confidence. He revealed that METI has proactively engaged with JPUC regarding potential solution frameworks, including implementing escrow services.

He stated, "To eliminate these issues, creating a structured approach is vital. The introduction of escrow services is a significant step forward, fostering trust across the industry."

Future Outlook: Standardizing Escrow Payments in the Industry

MOTA aims to leverage its established payment infrastructure to transition into an industry-wide public service. As JPUC progresses in its initiatives, MOTA continues to deepen its collaboration with both the association and METI, striving to create a fairer used car transaction platform for consumers and dealerships alike.

For more information about MOTA’s services, visit – MOTA’s Anshin Payment.

Company Overview: MOTA Co., Ltd.

• - Headquarters: 2-4-6 Akasaka, Minato, Tokyo
• - Founded: June 3, 1999
• - Capital: Approximately ¥141 million (as of March 4, 2026)
• - CEO: Daisuke Sato
• - Services Offered: Vehicle purchase, real estate assessments, and a range of digital transformation services.

For more updates, visit MOTA Corporate Site or check our Careers page.