3 days ago
Japan used car dealers suffer as weak yen benefits foreign rivals
Used Japanese cars have strong demand overseas, as they are generally kept in good condition. (Photo by Sota Tanaka)
RISAKO KOJIMA and SOTA TANAKA
TOKYO -- Bankruptcies of used car dealerships in Japan are increasing despite strong demand due to higher inflation, as a weak yen benefits foreign dealers buying automobiles at auction.
In the first five months of the year, 50 used auto dealerships filed for bankruptcy, a 56% rise compared with the same period last year, according to corporate research company Teikoku Databank. The surge in bankruptcies is nearing a record high in 2009 after the global financial crisis.
