Bifurcation of Used Car Dealerships Widens Amidst High Prices: Soaring Freight Costs and Middle East Risks Squeeze Profits / Used Car Market Statistics Report (March 2026 Edition)

Fabrica Communications Co., Ltd., a wholly-owned subsidiary of Fabrica Holdings Co., Ltd. (Head office: Naka-ku, Nagoya City, Aichi Prefecture; Representative Director & CEO: Masato Taniguchi), which operates the used car information website "Kurumaerabi.com" (https://www.kurumaerabi.com/), is pleased to announce the "Used Car Market Statistics Report," which summarizes trends in the used car market based on new and used car registration figures and sales trends on its website for March 2026.

Excerpts from the "Used Car Market Statistics Report (March 2026)" are presented below.

For details of this survey, please visit: https://www.kurumaerabi.co.jp/useful-details/1356/

Trends in the Automobile Sales Market (March 2026)

Trends in New and Used Car Registrations

First, compared to February, new car registrations increased by 124.1% month-on-month, and used car registrations significantly increased by 152.3%. For new cars, March typically sees a large increase compared to February due to the fiscal year-end closing, and this year shows the same trend. For used cars, there was also a significant increase from February to March, which can also be attributed to the usual active demand at the fiscal year-end.

Next, looking at the year-on-year comparison with March of last year, both new and used car registrations decreased, with new car registrations at 90.1% and used car registrations at 95.8%. For new cars, this marks the third consecutive month in 2026 that year-on-year registrations have fallen below the previous year's figures. The slow recovery of the new car market and the unresolved stagnation in trade-ins, which are the entry point for procurement, are further prolonging the severe current shortage of vehicles.

New Car Registrations

2026

January

February

March

3-month average

New Car Registrations

338,967 units

362,657 units

450,102 units

383,909 units

Month-on-month

101%

107.0%

124.1%

110.7％

Year-on-year

90.1％

88.6%

90.1%

89.6%

Used Car Registrations

2026

January

February

March

3-month average

Used Car Registrations

432,160 units

488,460 units

743,944 units

557,055 units

Month-on-month

82.2%

113.0%

152.3%

115.8％

Year-on-year

93%

93.9%

95.8%

94.2%

*"Kurumaerabi.com" presents trends in new and used car registrations based on statistical data from "JAPAN AUTOMOBILE DEALERS ASSOCIATION (JADA)," which announces ordinary car registrations, and "JAPAN LIGHT MOTOR VEHICLE AND MOTORCYCLE ASSOCIATION (ZENKEIJIKYO)," which announces light vehicle registrations.

Chronic Vehicle Shortage and Strong Overseas Demand

In March 2026, the used car market continued to operate at high price levels, driven by a chronic vehicle shortage and robust overseas demand. Following the USS AA average successful bid price marking a record high for the second consecutive month in February, with a 9.5% year-on-year increase to 1.38 million yen (※), prices in March also maintained a high range without significant decline. Furthermore, used car registrations in fiscal year 2025 exceeded the previous year's results for the third consecutive year, driven by strong performance in light vehicles. On the other hand, the circulation of quality vehicles remains insufficient, and procurement competition among dealerships is active.

(※) Source: Nikkan Jidosha Shimbun (published March 6, 2026)

https://www.netdenjd.com/archives/648213

Middle East Risks and Profit Squeeze, Accelerating Polarization

However, changes in the global situation are now casting a shadow over the market. With the abrupt changes in the Middle East situation since March, severe stagnation has occurred in logistics bound for the UAE, a major export destination. This points to the possibility that SUVs, which have been supported by export demand, will flow into the domestic market, strengthening downward pressure on prices. In addition, soaring freight and land transport costs, and a significant price increase for paint thinner due to high crude oil prices, are collectively squeezing dealership profits. Indeed, the number of corporate bankruptcies in March exceeded the previous year's figures for the fourth consecutive month, and while the deterioration of cash flow for stores holding high-priced inventory is becoming apparent, the performance gap with large companies is widening.

Escaping AA Dependence and Securing Profits through Diversified Procurement Routes

In such an environment, flexibility is required to review over-reliance on AA procurement, which is easily influenced by external factors. As a measure to mitigate market fluctuation risks, it is recommended to build a system for stably securing inventory in-house by strengthening direct purchases from general users and suppressing intermediate margins. Furthermore, gradually shifting the types of vehicles handled to those for domestic demand, such as kei cars, which are less affected by export trends, is also an effective strategy. To respond to rapid market changes, multiple procurement routes...