Explaining the Features of JBA (Japan Bike Auction) and the Flow of Motorcycle Dealer Auctions!

JBA is an auction where motorcycle dealers conduct transactions with each other, and the difference from Yahoo! Auctions, for example, is that "only dealers can participate."

Used motorcycle dealerships cannot start business without motorcycles to sell, so they acquire motorcycles for sale by purchasing them from customers or sourcing them from other dealers.

They may also want to transfer motorcycles they've purchased to other dealers.

Dealer-specific motorcycle auctions like JBA serve as intermediaries for dealers looking to buy or sell motorcycles.

JBA is Japan's largest motorcycle auction

There are about 10 motorcycle auction venues in Japan, and JBA is one of the major ones.

JBA has two auction venues, JBA Kobe in Kobe City, Hyogo Prefecture, and JBA Yokohama in Yokohama City, Kanagawa Prefecture, and auctions are held weekly.

JBA's system, where three inspectors (one for "exterior," one for "inspection," and one for "overall") are assigned to each listed motorcycle to inspect and evaluate it in a fair and neutral manner, is unique in the industry.

A large number of motorcycles are handled, ranging from the latest domestic and foreign models to rare vehicles not often seen in the market.

80% to 90% of the listed motorcycles are successfully bid on, indicating a very high success rate for JBA.

It can be seen that JBA's thorough motorcycle evaluation system and support structure contribute to its credibility and high successful bid rate.

Participation possible both online and by attending the venue in person

You can participate in auctions by going directly to one of JBA's two venues, or you can also participate online.

Auctions are held every Tuesday at JBA Kobe and every Friday at JBA Yokohama, and the online platform is available for viewing and participation at any time.

Since you cannot inspect the actual vehicle online, there is a system that allows for more detailed inspection of the condition.

The support system is also robust, with a "Super Zoom function" that allows users to view desired areas without compromising image quality, and a "Free Pre-inspection Proxy Hotline" where inspectors provide information about the condition of a motorcycle and engine sound via phone free of charge.

What is JBA's highlight "Real Net Auction"?

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JBA's notable auction is the online auction called "Real Net Auction."

By accessing the site on a computer and pre-registering, you can search for motorcycles and place bids in the online auction venue.

As a cautionary note, since JBA is an auction where only dealers can participate, individuals, unfortunately, cannot join.

In Real Net Auctions, it is only possible to view the actual vehicle on a computer monitor, so the Super Zoom function and Free Pre-inspection Proxy Hotline are available to convey more accurate information.

Detailed inspection possible with Super Zoom function

The Super Zoom function allows you to zoom in and view images of listed motorcycles in more detail.

You can zoom in on any part of the motorcycle you are interested in, and cutting-edge technology is used to ensure that the image quality does not degrade even when zoomed in.

While it's not quite the same as seeing the actual vehicle with your own eyes, this function allows for a detailed inspection that closely mimics a real-life viewing.

Since you can clearly read even fine details like warning labels on the fuel tank, it's a highly convenient feature.

In general auctions accessible to individuals, some listed items may have blurry or poor-quality images.

In contrast, all JBA listing images are clearly photographed with special cameras by staff, allowing for detailed inspection even with the super zoom.

 Reference:JBA Super Zoom

Check motorcycle condition by phone with the inspection proxy hotline

The inspection proxy hotline is a system that allows you to check the condition of a motorcycle you are interested in over the phone.

While you cannot visually inspect the actual vehicle in a web auction, using the inspection proxy hotline allows you to get information on areas of concern, such as engine sound, suspension wear, and whether there are any oil leaks.

What are the advantages of JBA auctions?

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The advantages of JBA auctions are:

• Motorcycles can be successfully bid on at relatively low prices.
• Fewer complaints after successful bids.
• Low shipping costs nationwide.

These points.

Motorcycles can be successfully bid on at relatively low prices

JBA often features a large number of motorcycles acquired by major motorcycle buyers, so motorcycles with high inventory tend to be successfully bid on at low prices.

There are other auctions similar to JBA, such as BDS, which handles the largest number of units in Japan, and Arai, operated by Arai Shōji, but JBA often has lower successful bid prices compared to these.

Fewer complaints after successful bids

At JBA, all listed motorcycles are evaluated by a team of three inspectors, each responsible for the exterior, inspection, and overall condition.

The evaluation is detailed, with each aspect rated on a 10-point scale, which reduces complaints often encountered after a successful bid, such as "the evaluation did not match the actual vehicle."

It is highly likely that the thorough system for those who cannot visually inspect the actual vehicle, such as the Super Zoom function and the inspection proxy hotline for Real Net Auctions, contributes to the low number of complaints.

Low shipping costs nationwide

JBA has an established transportation network for shipping successfully bid motorcycles to various regions, and using it significantly reduces costs compared to general motorcycle delivery services.

If you bid on a 1000cc motorcycle at JBA Yokohama and request transport to Osaka, the cost is 9,100 yen.

Similarly, if you use a specialized motorcycle shipping company for transport from Yokohama to Osaka, the cost would be around 20,000 to 30,000 yen, making JBA's transport cost about half or one-third of that.

It's reassuring to have transportation arranged after a successful bid, and the transportation cost is considerably cheaper than general shipping companies.

What are the disadvantages of JBA auctions?

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The disadvantages of JBA auctions are:

• Individuals cannot participate.
• Even dealers have participation requirements.
• Fees are required before participation.

Let's look at each individually.

Individuals cannot participate in motorcycle auctions

Individuals cannot participate in JBA auctions.

"Individuals" refers to those who have not registered as a corporation or filed a business opening notification.

While it's possible to acquire motorcycles at a lower price, the fact that only businesses can participate in JBA is a disadvantage for individuals.

Even dealers have conditions for participating in motorcycle auctions

Even businesses may not be able to participate in JBA. Even if a company is registered as a corporation and engages in motorcycle-related business, it cannot participate immediately after establishment, which is a disadvantage for newly established businesses.

JBA's participation requirements include having been in the motorcycle business for more than one year and having a physical store that deals in motorcycles.

For those who have just started a sole proprietorship or established a corporation, the barrier to entry is somewhat high.

While these conditions help maintain a certain level of quality among participating businesses in JBA, the inability for newly established businesses to participate is a disadvantage.

Fees required before participating in motorcycle auction

Similar to other major motorcycle auctions, JBA requires a participation fee and a monthly membership fee to join.

Although the exact costs differ slightly depending on whether you attend JBA auction venues in person or participate solely through online auctions, both typically require around 140,000 yen upfront.

While companies with abundant capital may not have an issue, individual businesses might find this a significant burden.

Compared to auctions like Yahoo! Auctions where individuals can participate, the significant cost required to participate is also a disadvantage.

Can individuals participate in JBA?

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As explained earlier, individuals, unfortunately, cannot participate in JBA motorcycle auctions.

There are also participation conditions, such as being a business and having been in business for more than one year, even if you are a business.

Additionally, initial and ongoing fees are required to participate in the auction, which would be a significant burden for individuals.

Fees required to participate in motorcycle auction

To participate in JBA, an admission fee and a monthly membership fee are required upon application.

The costs for participation are as follows:

JBA Participation Fees (as of June 2021)

For Physical Venue Members who attend auctions at JBA's two venues, the total initial cost including the first month's fee is 142,280 yen.

For Web Members participating in Real Net Auctions, the initial cost is 145,580 yen.

Since such a substantial amount is required before starting, even if individuals could participate, the barrier would be quite high.

Still, if you really want to participate in JBA, what should you do?

How to participate in JBA motorcycle auctions as a dealer?

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Individuals cannot participate in JBA, so you must participate as a dealer, but there are other conditions for participation.

To participate in JBA, you must first agree with JBA's operational policy.

Specifically, this means acknowledging the contents of JBA's terms of use and refraining from prohibited actions.

Other conditions for participating in JBA include:

• Being engaged in the motorcycle business (sole proprietorship or corporation).
• Having been in the motorcycle business for at least one year.
• Having a physical store recognized as a motorcycle dealership.
• Possessing a dealer's license for antiques.

If you operate a motorcycle dealership and have been in business for more than one year, you should have no problem participating. However, individuals who rent a parking space and conduct sales only online may not meet the requirements.

Additionally, a dealer's license for antiques is required for transactions involving used motorcycles.

What is a used goods dealer license?

Regardless of whether you are an individual or a business, a used goods dealer license is always required when buying and selling used goods, not just for participating in motorcycle auctions.

Since JBA involves the sale and purchase of motorcycles, a used goods dealer license is necessary.

To buy and sell used goods (antiques), a license from the Public Safety Commission in the area where the business operates (application window is the police station) is required, and the proof of this license is the used goods dealer license.

Buying and selling used goods without a used goods dealer license is an illegal act punishable under the Secondhand Articles Dealer Act.

It is always required when dealing with used goods, not just for participating in auctions.

A used goods dealer license is required for each prefecture where a business operates. For example, if you sell used cars in Tokyo and Osaka, you must obtain a used goods license from the Public Safety Commission in each respective prefecture.

If you establish a corporation or register as a sole proprietor, obtain a used goods dealer license, secure a physical store for your motorcycle business, and operate for at least one year, you should be able to participate in JBA.

What is the quality of JBA listed motorcycles?

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The quality of motorcycles listed on JBA varies depending on the individual motorcycle.

Even with the same year and mileage, the condition of a motorcycle will differ depending on how it was handled, such as the storage environment, whether it was ridden in the rain, and whether it was regularly washed.

Therefore, at JBA, to accurately convey the condition of listed motorcycles, three inspectors—one for exterior, one for function, and one for overall condition—check and evaluate each motorcycle.

All listed motorcycles are inspected by 3 inspectors

All motorcycles listed on JBA are evaluated by three inspectors, each responsible for the exterior, function, and overall condition.

The evaluation points cover approximately 100 items, including scratches and dents on cowlings and tanks, operational status and wear of various parts, and paint condition of cylinders, and are rated on a 10-point scale.

This thorough inspection and evaluation system prevents misunderstandings such as "the condition was different from what I expected after the bid."

This results in a low complaint rate of less than 1% after successful bids over the past five years.

About the flow of motorcycle transactions at JBA

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The general flow of transactions at JBA is:

1. The exhibitor brings the motorcycle to the auction venue.
2. Inspectors examine and evaluate the motorcycle.
3. The seller sets a reserve price.
4. The buyer chooses a motorcycle and places a bid.
5. If the bid is successful, the successful bid price and usage fee must be paid by the deadline.
6. The buyer picks up or arranges transport for the motorcycle.
7. JBA deposits the successful bid price, minus fees, to the seller.

After a successful bid, they also offer nationwide shipping, from Hokkaido to Okinawa.

Shipping costs are also quite low, about half the price of typical motorcycle shipping.

Are there other motorcycle auction companies besides JBA?

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In Japan, there are auction companies other than JBA.

As of June 2021,

• BDS
• Arai Auto Auction
• i-moto-auc
• AJ

These four are the most popular auctions, and all are only open to businesses.

Each has different characteristics, and participants choose based on their preferences, though some have memberships with multiple.

BDS

BDS is one of Japan's largest auctions, holding auctions at three venues: Kashiwa City, Chiba Prefecture, Sakai City, Osaka Prefecture, and Dazaifu City, Fukuoka Prefecture.

With approximately 5,000 member stores, about 4,000 items are exhibited weekly. In addition to the "Regular Auction," they also offer a "Flea Market Auction" exclusively for vehicles for parts, and a "Cyber Auction" for parts, covering a wide range of motorcycle-related items.

The participation requirement is establishment for two years or more, which is slightly stricter than JBA.

Arai Auto Auction (Arai Shoji)

Arai Auto Auction is an auction held at two locations: Bayside venue in Kawasaki City, Kanagawa Prefecture, and Fukuoka venue in Koga City, Fukuoka Prefecture, handling both two-wheelers and four-wheelers.

They have yards in Kobe and Aichi, and a system where exhibition status can be checked at the two auction venues.

i-moto-auc (Aucnet)

i-moto-auc (Aucnet) does not have a physical auction venue and is held exclusively online.

Each dealer posts images and detailed information about their exhibited vehicles, and the system is similar to Yahoo! Auctions in that exhibits are viewed only online.

Auctions are held every Thursday, with approximately 1,000 motorcycles exhibited.

AJ (All Japan Motorcycle Cooperative Association)

AJ (All Japan Motorcycle Cooperative Association) has member motorcycle dealerships nationwide, and auctions are held regionally, such as AJ Osaka and Aichi.

AJ is an association that aims to improve the motorcycle environment, and it is a powerful association whose efforts, along with other motorcycle-related industry organizations, led to the speed limit for motorcycles on expressways being raised to 100km/h, the same as for cars.

Several hundred motorcycles are exhibited at each auction.

Summary

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JBA's motorcycle auctions are not open to individuals; participation is limited to businesses.

There are also participation conditions, such as being established for more than one year, making it somewhat difficult for newly established businesses in the motorcycle industry to participate.

However, with thousands of motorcycles exhibited each time and a robust condition evaluation system by inspectors, there's a high probability of finding the motorcycle you want to procure.

While initial and monthly membership fees are required to participate, if you are actively looking to procure motorcycles or sell your own, please check it out.