#vehicle sales #Used Car Market #Fabrica Communications

Overview of the Used Car Market Report (August 2025)

As the used car market continues to experience sustained high prices, significant effects on retail revenues have become apparent. Fabrica Communications, a wholly-owned subsidiary of Fabrica Holdings, manages the car selection platform "Kuruma Erabi Dotcom," which provides insights into the fluctuations in the car market based on new and used car registration data for August 2025.

Current Market Trends

The August report highlights recent decreases in both new and used car registrations. Compared to July, new car registrations fell by 22.9%, while used car registrations decreased by 19.6%. Traditionally, August sees a roughly 20% reduction in new car sales compared to July, but this year the decrease was more pronounced. Similarly, used car registrations also reflect a similar trend to last year, hovering around 80%. Year-over-year comparisons show that new car registrations fell to 91.7%, while used car registrations only slightly rerouted, at 98.8%. This consecutive decline in new registrations is believed to affect the used car market through diminished vehicle trade-ins and purchases, ultimately impacting supply.

Statistical Insights

New Car Registrations (2025)

• - June: 393,162
• - July: 390,512
• - August: 301,219
• - Year-over-year change for August: 91.7%

Used Car Registrations (2025)

• - June: 535,385
• - July: 570,807
• - August: 461,678
• - Year-over-year change for August: 98.8%

The report draws data from the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association on the registration statistics of regular and light vehicles.

The Historical Context of Car Valuation

The trend of high prices in the used car market is expected to persist in the near future due to ongoing shortages. Approximately five years ago, new car sales saw a significant drop due to the pandemic, leading to a shortage of five-year-old vehicles that typically enter the used market as they reach the timing for their second inspection.

Currently, due to reduced supply, the average auction closing prices for used cars are at unprecedented highs, making procurement significantly more challenging. Additionally, the depreciation of the yen has created a scenario where exporting cars yields better profits than domestic sales. In the first half of 2025, over 800,000 used cars were exported, setting another record for the third consecutive year.

Notably, the resurgence of quinoa imports from Sri Lanka and the economic growth in the African region are driving demand, likely leading the total annual export numbers to exceed 1.6 million for the first time. Light vehicles were particularly popular, expanding from approximately 50,000 in previous years to nearly 90,000 last year, showcasing their strong appeal for their spacious interiors, fuel efficiency, and ease of sourcing spare parts, especially in countries like Pakistan and Sri Lanka.

Challenges Facing Used Car Dealers

Despite high market prices, dealers are facing rising costs for labor and goods, making profit margins increasingly difficult to maintain. With both procurement and operational expenses increasing, it is more essential than ever for dealers to develop business strategies based on current market conditions rather than awaiting price declines.

Analysis of Kuruma Erabi Dotcom's Market Trends

The report also sheds light on trends observed in the domestic used car market during August 2025 through the lens of