Delica: on the lot in Japan for about $2000
Japanese Domestic Market (JDM) automobiles are vehicles which were originally sold only in Japan. Many of these vehicles are coveted in places like Russia, Australia, Canada, and the UK, where they can be imported, sold, insured, and driven with little or no restrictions, often as ‘grey’ market imports.
Some like them for their uniqueness (the one-box Mitsubishi Delica for example), others for their performance (a 376hp Nissan Skyline doesn’t sound too bad), and still others for their legendary reliability (drive a Toyota Landcruiser or Nissan Patrol and you’ll never go back). Everyone else likes them for their often pristine condition, low mileage, and liberal cache of functioning bells, whistles, and accessories.
These days JDMs are more popular than ever in Canada, thanks to vehicle import rules that have made importing a vehicle from Japan a fairly straightforward and relatively low risk process. As long as the vehicle is over 15 years of age it can be imported into Canada, inspected, insured, and driven on North American roads.
For several years, I’ve been dreaming of importing a JDM vehicle to call my own. A Toyota Landcruiser diesel. Or an Isuzu Bighorn diesel. Or possibly a Nissan Patrol. After living in Japan for a few years and experiencing first hand JDM 4x4s, I was hooked. I can never decide exactly which one I want, but I know I want one eventually.
But when I returned to Canada and started researching the JDM industry, I got discouraged by the facts (they always get in the way). Transport Canada, the federal government body that governs vehicle imports (among many other things) is considering extending the vehicle age restriction from 15 to 25 years. This would effectively kill the JDM market in Canada in a very short time.
There are also rumblings about higher insurance premiums for right-hand drive (RHD) vehicles, provincial inspections that are suddenly becoming more difficult to pass, and the potential for future problems related to recalls and part availability. The ability of the government to ‘change the rules’ at any time, forcing RDH vehicles off the road by making it too expensive (or risky) to continue driving, is also a concern.
While I’d like to say any drastic changes are unlikely, they aren’t. In fact, they are probably coming sometime in the next year or so.
The JDM industry is understandably up in arms, but it’s important to consider why Transport Canada is proposing these changes. For many years, Canadians have been able to import vehicles over 15 years of age, and many have. But only in the last 5 or so years has a cottage industry developed around used vehicle imports, most notably from Japan. This has drastically increased the number and variety of JDM vehicles being bought, sold, and driven in Canada.
It should be no surprise that Transport Canada is now paying attention. Casual imports by hobbyists are one thing; container-loads of JDM vehicles imported by those looking to make a fast buck and often exceedingly high profit margin are another (used vehicles that sell for $1000 in Japan can sell for $10,000 in Canada).
While Transport Canada is the obvious ‘enemy’ in the eyes of many JDM enthusiasts, some importers have contributed to the problem by importing large quantities of JDM vehicles and selling them without the modifications required to drive safely on Canadian roads (DOT headlights, 3rd brake lights, new tires, alignment, for example). Others have sold defective vehicles with no post-sales support. And some have imported vehicles but overlooked the need to import maintenance parts as well.
While a JDM 4×4 has long been on my most wanted list (and still is), after researching my options I decided to hold off and look for a ‘domestic’ alternative. I found one (a 1986 Toyota Landcruiser diesel) which was cheaper than a JDM import, has great parts availability, and will never be subject to RHD restrictions or hiked insurance premiums. Sure, it has more miles, more rust, and more dirt, and isn’t as ‘cool’ as a JDM version (no factory winch, cable diff locks, or fender flares) but it will do just fine.
While I still drool every time I see a JDM Landcruiser, I’ll save my money for now and build up the ‘Cruiser I’ve got. If Transport Canada backs down and allows the JDM market to flourish as it should (Regulate, don’t Eliminate!!), perhaps one day I’ll pick up my dream Cruiser. But until then, I’ll put money into the vehicle I own, rather than line the pockets of an importer who may be contributing to the problem, not the solution.
As discussed in an earlier post, used 4×4 vehicles in Japan can be shockingly cheap to buy compared to the same JDM vehicle imported into Canada (or elsewhere).
As you can see from these photos I took last year in Sapporo, this 1991 Mitsubishi Delica was selling for 190,000 Yen, or about $1900 CDN. Compare this to a similar Delica being offered for sale in Canada at $11,500.
(It’s important to keep in mind the additional costs of shipping, inspection, and registration of a JDM vehicle in Canada. I don’t know what those costs amount to, but I imagine they must be significant.)
After talking to the Japanese salesmen for about five minutes, the price was lowered to $1300 and he would have easily gone lower. Why? Because even though this car had only 90,000 kms on it and was in pristine condition, people in Japan generally don’t want to drive vehicles with more that 100,000 kms on them. The government also makes owning older vehicles very expensive, with an annual car tax and vehicle inspection that costs thousands.
That’s why most people in Japan end up paying someone to come and take their older vehicle away. People tend to assume their vehicle will be destroyed, but the vehicles are usually sold on local car lots at a markup or exported to fetch a pretty penny overseas.
I know of several companies in Japan that charge 50,000 Yen ($500 CDN) just to come and take your slightly used car away. In my case, I was extremely fortunate to be able to get 30,000 Yen ($300 CDN) for my 1991 Isuzu when I sold it to return to Canada, and it was in fantastic shape (I still miss it!).
So yes, a JDM car worth $8000 or $10,000 in Canada is often less than worthless in Japan. People pay money to get rid of them, car lots let them go for a song, and exporters make a lot of money collecting them and shipping them overseas.
In this scheme of things, Canada is a drop in the bucket and tends to get the scraps: the best used vehicles are often exported to Russia, China, Saudi Arabia, and the UK before our importers even know they’re for sale.
