If you’re researching a Japanese car import, you’ll quickly encounter terms like “Grade 4.5”, “Grade R”, or “3B”. Japanese auction grades are one of the most reliable and standardised condition assessment systems in the world — but they work differently from European inspection systems and can be confusing at first.
This guide explains every grade, how to read an auction sheet (傷票 / kizuhyo), and what grade you should target for different types of import.
Who Sets the Grades?
Grades are assigned by independent, accredited inspectors employed by the auction house — not the seller. This is a crucial difference from private sales or dealer descriptions. The inspector physically examines the vehicle at the auction hall, documents every defect on a standardised damage map, and assigns an overall grade.
The system is used consistently across all major auction networks: USS (Japan’s largest), TAA, HAA Kobe, JU Group, Aucnet, and others.
The Grade Scale
| Grade | Condition | Typical Description |
|---|---|---|
| S / 6 | New / As New | No defects whatsoever. Extremely rare — typically pre-registered or demonstrator vehicles with under 1,000 km. |
| 5 | Excellent | No scratches, dents, or repairs visible. Under 30,000 km typical. Immaculate throughout. |
| 4.5 | Very Good | Only very minor surface marks (light swirl, tiny stone chip). No repairs, no panel damage. |
| 4 | Good | Small scratches, minor paint repairs or touch-ups. No structural issues. Presentable. |
| 3.5 | Above Average | Some repairs, minor dents, paint fade, or surface rust. Mechanically sound. |
| 3 | Average | Visible wear and repairs. May need cosmetic attention. Mechanically acceptable. |
| 2 | Below Average | Significant cosmetic issues. May have unknown mechanical history or high mileage. |
| R | Repaired (accident) | Has had accident repair, but repair is satisfactory. Disclosed transparently on sheet. |
| RA | Repaired (minor) | Minor accident repair, well done. Often better condition than Grade 3. |
💡 Important: Grade R / RA does not mean the car is unsafe or poorly repaired — it means a repair was performed and is being disclosed. A RA car can be in better overall condition than a Grade 3.
Interior and Mechanical Sub-Grades
The overall grade covers exterior condition. The auction sheet also includes sub-grades:
- Interior (内装): A = Excellent, B = Good, C = Average, D = Poor. Look for “A” or “B”.
- Mileage (走行距離): Confirmed odometer reading in km or miles.
- AT / MT: Automatic or Manual transmission.
- Engine (エンジン): Start confirmed, no smoke, normal oil pressure.
Reading the Damage Map
Every auction sheet includes a diagram of the vehicle (top view and side view) with codes marking the location and severity of every defect. Common damage codes include:
- A / A1 / A2 / A3: Scratch (A1 = very minor, A3 = deep)
- U / U1 / U2 / U3: Dent (U1 = small, U3 = large)
- W / W1 / W2 / W3: Wave / ripple in panel
- S: Rust (surface)
- SI: Rust through (serious)
- X: Requires replacement
- XX: Already replaced
- B: Broken / cracked
- C: Corrosion
- P / P1–P3: Paint defect
We translate and annotate every auction sheet for our clients, explaining exactly what each mark means and its likely repair cost.
What Grade Should You Target?
The right grade depends on your purpose and budget:
- Daily driver, maximum value: Grade 4 — clean, presentable, no surprises
- Show car / concours: Grade 4.5 or 5 — commands a premium but worth it
- Track use / tuning project: Grade 3.5 or 3 — mechanical condition matters more than cosmetics
- Restoration project: Grade 2 or R — low acquisition cost, factor in restoration budget
- Investment: Grade 4.5 or 5 — provenance and condition are paramount for long-term value
🎯 Our recommendation: For most clients, we target Grade 3.5–4.5. This range offers the best value: clean, presentable vehicles without the significant premium of Grade 5 examples. We never bid on Grade 2 or ungraded vehicles without explicit client agreement and a thorough additional inspection.
Beyond the Grade: What Else to Check
Grade alone doesn’t tell the whole story. We also verify:
- Shaken validity (車検): Remaining validity on Japan’s mandatory roadworthiness inspection
- Service history: Available on some lots, confirms maintenance record
- Modification disclosure: “改造” (kaizo) flag indicates modifications — may affect EU compliance
- Import status: Was this car previously imported to Japan from another market? Rare but relevant.
Have a specific car in mind? Send us the details and we’ll source auction sheets, arrange an inspection, and advise on whether the grade and condition match your requirements.
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