New Vehicles sales volume continuously showing declining trend. During the initial nine months of the 2024 around 37 percent decrease is recorded. Due to high inflation consumer has lost his purchasing power. Even bank interest rates for Car Loans and leasing became abnormally high and common user/ purchaser of cars even cannot afford repayment ofinstallment of loan and leasing. As a result the volume of auto financing from the banks is also decreased significantly about more than 24 percent in this year’s initial nine months.
This situation may open a door of surge in used car sales. Unfortunately there is no Government supported institution for the certification of the used car condition. Although two Japanese companies i.e. Toyota and Suzuki has started Schemes of used their own brands used cars sales certification. But their certification facility is not available for all brands.
In Japan an organization called” japan inspection organization”- J.I.0 issue road worthy Certificate for used vehicles that was registered in Japan and was driven at Japanese roads. Used vehicle certification is the process of certifying that the vehicle has no problem. A certified pre-owned car or CPO is a type of used car that is inspected by Japan Inspection Organization inspector(s) and certified by JIO authority.
The JIO certified car is one that is previously registered & driven in Japan, and was inspected by Japan Inspection Organization inspector(s) before available for resale. Thisorganization has its own set standards. The appraisal are also include engine and body check.
Their standards include that the vehicle with no more than 50,000 kilometers mileage and no older than five years from the first registration in Japan, qualify to apply for the inspection of “Certified car”. However, in some cases vehicle older than 5 years and mileage more than 50,000 kilometers can qualify for “Certified car” if was extra ordinary maintained by previous owner. JIO Certified vehicles are subjected to a rigorous, multi-point inspection. If the vehicle meets JIO mandatory qualifications, it can offer for sale as a “JIO Certified Vehicle”. The most important factors for a potential “JIO Certified” vehicle are that it must be in excellent condition and be mechanically sound. If a vehicle doesn’t meet the JIO requirements, it will be rejected and no appeal will be accepted for re-inspection of such vehicle. This organization has nationwide network in Japan to conduct the physical inspection of vehicles.
A JIO certified used car comes with an inspection before being offered for sale. While a non-certified used car is offered for sale without any inspection at high risk.
The validity of roadworthiness certificate issued by this organization is 30 days from the date of inspection. After 30 days, used car dealer has to bring the vehicle at any JIO inspection center for re-inspection. Certificate will not re-issue without re-inspection of vehicle.
The engineering development board of Pakistan may take such initiative and formulate an institution or certification authority on the same pattern. This will facilitate buyer and sellers both. Furthermore banks can easily finance these certified vehicles.