The Document That Determines What You’re Actually Buying
When a vehicle is presented at a Japanese auto auction, an inspection sheet is prepared – commonly called an auction sheet, this Japanese auction sheet is the single document that tells you what you’re actually bidding on.
It records the vehicle’s condition at the time of inspection: exterior and interior grade, mileage, and a coded notation of every defect the inspector found.
Buyers bid on the vehicle based partly on this sheet. If you’re purchasing a Japanese vehicle without being able to inspect it in person – as most overseas buyers do – the auction sheet is a critical document. Knowing how to read it is not optional.
The Two Major Auction Networks
Most Japanese vehicle auctions operate under one of two grading systems:
USS (Used Car System / Japan’s largest network): USS auctions run across multiple locations nationwide. The USS grading system is the most widely referenced in overseas import markets.
TAA (Toyota Auto Auction): Used by Toyota dealers and related networks. TAA grading tends to be stricter than USS – a TAA 4.5 is generally considered equivalent to a USS 5. If you’re comparing grades across auction houses, understand that a 4 from TAA is not the same as a 4 from USS.
Other major networks include JAA, HAA, and JU. Each has its own grading nuances, though the core grade and damage code framework is broadly consistent.
For more on how these auctions work day-to-day, see our Japanese auction guide.
Understanding the Grade Scale
The main grade is a single number (or letter) representing overall vehicle condition. It’s the first thing to look at.
| Grade | Description |
| S (or 6) | New or near-new with virtually no faults. Rarely seen |
| 5 | Near mint. Minimal marks. The highest practical grade for used vehicles |
| 4.5 | Excellent. Minor scratches or small marks only |
| 4 | Good/above average. Some scratches or minor dents; overall well-presented |
| 3.5 | Average. The most common grade. Wide range - can be very presentable or showing clear wear |
| 3 | Requires body work. Multiple scratches, dents, or marks that need attention |
| 2 | Significant body damage. Panel repairs likely required |
| R | Accident repaired. The vehicle has been in an accident and repaired. May still present well – RA vehicles (accident repaired to high standard) can grade as high as 4.5 |
| RA | Accident repaired to high standard. Not inherently a problem, but requires careful inspection |
| 0 or blank | Not inspected, or major accident history. Treat with extreme caution |
A grade 4 from a reputable inspector at a major auction is generally a solid vehicle. Most buyers targeting a good daily or light weekend use are looking at 4-4.5. Grade 3.5 is where it gets variable – the bottom of 3.5 can be considerably rougher than the top.
Interior and Exterior Sub-Grades
In addition to the overall grade, auction sheets typically include sub-grades for the interior (内装) and exterior (外装).
Interior sub-grades:
| Grade | Description |
| A | Excellent |
| B | Good |
| C | Average wear |
| D | Significant wear |
| E | Poor – requires attention |
Exterior sub-grades typically follow the numeric scale (5, 4, 3 etc.) matching the overall grade scale.
A vehicle might be graded 4 overall with an interior of B – that tells you the body is in good shape but the interior has normal wear without being a concern.
The Damage Codes
This is where the auction sheet communicates the specific condition at each location on the vehicle. Inspectors mark a schematic diagram of the vehicle and use a code system to describe what they found.
Location Codes
The schematic shows a top-down and side view of the vehicle, divided into panels. Numbers and letters on the schematic correspond to locations on the vehicle (bonnet, roof, doors, guards, bumpers, boot).
Defect Codes
The following are the most commonly seen:
| Code | Meaning |
| A1 / A2 / A3 | Scratch – small / medium / large |
| U1 / U2 / U3 | Dent – thumb-sized / palm-sized / large |
| B1 / B2 / B3 | Dent combined with scratch |
| W1 / W2 / W3 | Panel repair – near-invisible / slight wave / conspicuous wave |
| S1 / S2 | Rust – fist-sized / larger area |
| C1 / C2 | Corrosion – light / heavy (rust-through) |
| Y1 / Y2 / Y3 | Tear or crack in trim/fabric – small / medium / large |
| X | Panel flagged for replacement |
| XX | Panel already replaced |
| E1 / E2 / E3 | Dimples – few / several / many |
| P | Paint defect (bubbling, peeling, fade) |
| G | Stone chip (usually on glass) |
The number modifier (1, 2, 3) consistently indicates severity – 1 is minor, 3 is significant.
Reading the Schematic
Auction sheets typically show a vehicle outline from above and from each side. The inspector places the relevant damage codes at the approximate location of the defect on the schematic.
Example interpretation:
A code “U1” at the front-right corner of the roof panel means a small (thumb-sized) dent on the front right of the roof. A “W2” at the rear passenger door means that door has been repaired with some visible waviness.
Multiple codes in one area indicate multiple defects – read each separately.
What to Ask For Beyond the Sheet
Auction sheets give you the inspector’s snapshot at the time of auction. They don’t tell you:
- Whether the chassis has been repaired or straightened (some auctions include a separate chassis inspection note)
- The condition of the engine and running gear in detail
- Whether there are outstanding recalls
- Full service history
Any of these gaps can surface later during our vehicle compliance process, so it’s worth chasing down answers before you bid, not after the car lands.
For high-value vehicles, arranging an independent pre-auction inspection through a Japan-based agent is worth the cost, Japan Export Vehicle Inspection Center (JEVIC). An inspector physically examining the vehicle can check underbody, lift panels, run the engine, and document findings beyond what the auction sheet captures.
TAA vs USS: Why Grade Comparison Matters
If you’re looking at multiple vehicles from different auction networks, be careful about direct grade comparisons.
TAA grading is stricter. A vehicle graded 4.5 at TAA will typically be in better condition than one graded 4.5 at USS. This matters when you’re comparing options and using grade as the primary quality filter.
When in doubt, ask your importer or agent which auction network the vehicle came from before comparing grades directly.
Grades That Should Make You Ask More Questions
Some indicators on an auction sheet warrant further investigation rather than immediate disqualification:
- R or RA grade: The vehicle has accident history. This isn’t automatically a problem – a professionally repaired R-grade vehicle at 4.5 quality can be excellent – but it needs inspection. Where was the damage? Was the repair structural or cosmetic?
- W3 on structural panels: A rear quarter or A-pillar with a W3 notation deserves scrutiny. This may indicate the repair was compromised.
- S1 or S2: Rust on a Japanese vehicle should be investigated. Japanese climate conditions mean rust on sills or underbody can spread faster than surface marks suggest.
- X or XX on major panels: Replacement panels can indicate hidden accident damage that wasn’t captured in the grade.
- High mileage with high grade: Unusually low damage markers on a high-mileage vehicle can indicate a well-cared-for car – or an optimistic inspector. Cross-reference with the service book and a mechanical inspection.
Frequently Asked Questions
What is the most common auction grade for imported Japanese cars?
Grade 3.5 is the most frequently listed grade at Japanese auctions – it covers a wide range from presentable to showing clear wear. Grade 4 and 4.5 vehicles are more selective to find and typically command a premium.
Is an RA grade vehicle safe to import?
An RA grade means the vehicle was in an accident and was repaired to a recognised standard. Repaired vehicles can be excellent condition – RA grades can run as high as 4.5. What matters is the quality and scope of the repair. Structural repairs require careful inspection; cosmetic repairs on minor accidents are generally not a concern.
What does a blank or 0 grade mean?
A blank grade or 0 typically means the vehicle was not inspected or had a major accident. These should be avoided unless you have a specialist independently inspect the vehicle before purchase.
Can I get an English-translated auction sheet?
Yes – most auction platforms and Japanese agents provide translated sheets, or third-party translation services exist. The grade and damage codes are standardised and the same across languages once you know the system.
Does a high grade guarantee the car runs well?
The auction sheet grade covers cosmetic and structural condition. It doesn’t certify engine and drivetrain condition beyond what the inspector noted. A grade 4.5 car can still have mechanical issues not reflected in the bodywork assessment. Mechanical inspection should be separate.
What’s the difference between USS and JAA grading?
Both broadly follow the same grade scale (1-5 with half-grades), but the strictness of grading can differ between networks. USS is the largest and most standardised. JAA and regional auctions may grade more or less generously. When in doubt, ask your agent which network and get an independent inspection for high-value purchases.
Working With an Auction Sheet on a Real Purchase
If you’re looking at a specific vehicle and want a second opinion on what the auction sheet is telling you, contact the Garage Apex team.
We review auction sheets regularly and can walk through what the damage codes mean for your specific vehicle.
*Garage Apex – 54 Miller Street, Epping VIC 3076 | 1300 112 220 | VicRoads approved, ISO9001 certified*
