[METI x MOTA] Special Session Held on Transparency in Used Car Distribution
MOTA Inc. and the Ministry of Economy, Trade and Industry (METI) held a talk session on 'Transparency in Used Car Distribution via Payment Systems.' They discussed the effectiveness of MOTA's 'Anshin Kessai' (Escrow Payment) in resolving non-payment issues and the future of industry standardization through public-private partnership.
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- 📰 Published: April 27, 2026 at 19:00
- 🔍 Collected: April 27, 2026 at 10:31
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MOTA Inc. (Headquarters: Minato-ku, Tokyo; President: Daisuke Sato; hereinafter 'MOTA'), which aims to achieve 'More Fair Trade to the World,' invited Daichi Horie, Assistant Director of the Automobile Division, Manufacturing Industries Bureau, Ministry of Economy, Trade and Industry (METI), to conduct a special talk session themed 'Transparency of Used Car Distribution through Payment Mechanisms.' In this dialogue, they discussed the effectiveness of the 'Anshin Kessai (Escrow Payment)' promoted by MOTA as a solution to resolve non-payment troubles—an industry-wide issue—and the prospects for industry standardization through public-private collaboration.
Background: Realities of 'Non-payment Troubles' in the Used Car Industry
In the current used car distribution, the industry custom of 'payment after vehicle delivery' remains deep-rooted. However, in recent years, cases of non-payment by some car buying businesses have occurred, becoming a serious issue that undermines consumer trust.
To prevent such consumer damage, METI requested the Japan Used Car Purchase Association (JPUC) last July to consider measures such as alerting member companies, reviewing listing standards on bulk appraisal media, and specific actions to prevent consumer damage. At the same time, they are requesting the promotion of rule-making to correct excessive expressions of price in advertisements. In response, JPUC is currently making effective efforts such as strengthening membership screening and advertising regulations, requesting cooperation from non-member businesses, and developing mechanisms for consumer payment protection and guarantees.
Current transactions rely heavily on the ethics of business operators, and there are limits to completely preventing payment delays due to poor management or malicious transactions. Therefore, building a 'mechanism' that physically prevents non-payment, rather than relying on individual morals, has become a crucial challenge for restoring trust in the industry.
Session Highlights: Solving via a 'Mechanism' through Escrow Payment
The importance of a 'mechanism' that makes troubles physically impossible was discussed in the session.
- Transparency through Third-party Intervention: It was discussed that escrow payment, where a third party intervenes between the seller and the buyer, is an effective 'mechanism-based' solution that allows both parties to trade with peace of mind without depending on the operator's morals.
- MOTA's Initiatives and Collaboration with JPUC: MOTA presented its 'Anshin Kessai' scheme. Furthermore, it was suggested that combining JPUC's existing initiatives, such as the 'Proper Buying Store Certification System,' with mechanisms like escrow services could lead to stronger consumer protection.
- METI's Evaluation of Mechanisms Independent of Morals: Mr. Horie of METI evaluated private sector-led initiatives that enhance transparency and mentioned that the introduction of 'mechanisms not relying on morals' aligns with the direction of government policy.
Escrow Service 'Anshin Kessai' as a Solution
'Anshin Kessai,' developed by MOTA, is an escrow service where MOTA acts as a third party between the buying store and the consumer.
1. Separation of Payment: MOTA temporarily holds the purchase price before the vehicle and documents are handed over to the dealer.
2. Reliable Ownership Transfer: Even if there is an outstanding loan balance, MOTA acts as an agent for the payoff procedure to the loan company, ensuring the state where name change is possible.
3. Visualization of Status: A system has been built where the user, the buying store, and MOTA can all check the payment status and vehicle location online in real-time.
Comment by Mr. Horie, Assistant Director, Automobile Division, METI
Used car distribution is an important market closely related to people's lives, but we recognize that non-payment troubles after vehicle delivery are a major issue that undermines consumer trust. In response to such problems, we requested JPUC and others last July to consider specific countermeasures.
To eliminate these problems, it is important to create mechanisms. Since we mentioned the consideration of introducing escrow services as one of the specific measures in our request to JPUC, I believe it is very significant that your company has pioneered the introduction of an escrow service in the industry.
To increase the trust of the entire industry, it is important that excellent initiatives like the one introduced today spread throughout the industry through forums like JPUC. Since METI also participates in JPUC's Board of Directors as an advisory board, we want to work together between the public and private sectors to restore trust in the industry.
Future Outlook: Towards Industry Standardization of Escrow Payment
MOTA aims to promote this payment infrastructure it has built into a public role for the entire industry. As JPUC continues its efforts, MOTA will deepen its collaboration with JPUC, METI, and others to ensure fair trading between consumers and buying stores.
Background: Realities of 'Non-payment Troubles' in the Used Car Industry
In the current used car distribution, the industry custom of 'payment after vehicle delivery' remains deep-rooted. However, in recent years, cases of non-payment by some car buying businesses have occurred, becoming a serious issue that undermines consumer trust.
To prevent such consumer damage, METI requested the Japan Used Car Purchase Association (JPUC) last July to consider measures such as alerting member companies, reviewing listing standards on bulk appraisal media, and specific actions to prevent consumer damage. At the same time, they are requesting the promotion of rule-making to correct excessive expressions of price in advertisements. In response, JPUC is currently making effective efforts such as strengthening membership screening and advertising regulations, requesting cooperation from non-member businesses, and developing mechanisms for consumer payment protection and guarantees.
Current transactions rely heavily on the ethics of business operators, and there are limits to completely preventing payment delays due to poor management or malicious transactions. Therefore, building a 'mechanism' that physically prevents non-payment, rather than relying on individual morals, has become a crucial challenge for restoring trust in the industry.
Session Highlights: Solving via a 'Mechanism' through Escrow Payment
The importance of a 'mechanism' that makes troubles physically impossible was discussed in the session.
- Transparency through Third-party Intervention: It was discussed that escrow payment, where a third party intervenes between the seller and the buyer, is an effective 'mechanism-based' solution that allows both parties to trade with peace of mind without depending on the operator's morals.
- MOTA's Initiatives and Collaboration with JPUC: MOTA presented its 'Anshin Kessai' scheme. Furthermore, it was suggested that combining JPUC's existing initiatives, such as the 'Proper Buying Store Certification System,' with mechanisms like escrow services could lead to stronger consumer protection.
- METI's Evaluation of Mechanisms Independent of Morals: Mr. Horie of METI evaluated private sector-led initiatives that enhance transparency and mentioned that the introduction of 'mechanisms not relying on morals' aligns with the direction of government policy.
Escrow Service 'Anshin Kessai' as a Solution
'Anshin Kessai,' developed by MOTA, is an escrow service where MOTA acts as a third party between the buying store and the consumer.
1. Separation of Payment: MOTA temporarily holds the purchase price before the vehicle and documents are handed over to the dealer.
2. Reliable Ownership Transfer: Even if there is an outstanding loan balance, MOTA acts as an agent for the payoff procedure to the loan company, ensuring the state where name change is possible.
3. Visualization of Status: A system has been built where the user, the buying store, and MOTA can all check the payment status and vehicle location online in real-time.
Comment by Mr. Horie, Assistant Director, Automobile Division, METI
Used car distribution is an important market closely related to people's lives, but we recognize that non-payment troubles after vehicle delivery are a major issue that undermines consumer trust. In response to such problems, we requested JPUC and others last July to consider specific countermeasures.
To eliminate these problems, it is important to create mechanisms. Since we mentioned the consideration of introducing escrow services as one of the specific measures in our request to JPUC, I believe it is very significant that your company has pioneered the introduction of an escrow service in the industry.
To increase the trust of the entire industry, it is important that excellent initiatives like the one introduced today spread throughout the industry through forums like JPUC. Since METI also participates in JPUC's Board of Directors as an advisory board, we want to work together between the public and private sectors to restore trust in the industry.
Future Outlook: Towards Industry Standardization of Escrow Payment
MOTA aims to promote this payment infrastructure it has built into a public role for the entire industry. As JPUC continues its efforts, MOTA will deepen its collaboration with JPUC, METI, and others to ensure fair trading between consumers and buying stores.