What is Mercari?
Mercari has exploded as Japan's largest online flea market, connecting over 22 million buyers and sellers monthly. Originally meaning “to trade,” Mercari derives its name from Latin’s “mercatus”. True to its etymology, the mobile app empowers peer-to-peer transactions of goods across a bustling virtual flea market.
Features of Mercari's Used Car Sales
In May 2016, Mercari took a pivotal step by enabling private listings of vehicles between individual sellers and buyers on its platform, without requiring a dealership or brokerage. However, direct user-to-user transactions posed early challenges including disputes and unanticipated issues upon purchase completion.
After three years of learnings and enhancements, Mercari formally introduced their "Anshin (Reassuring) Vehicle Warranty" initiative in June 2019 - providing 90 days of free repair support coverage related to mechanical function or electrical workings for vehicles meeting specific qualifying criteria.
Eligible models are capped at age 10 years or under 100,000 kms, must have a valid inspection certificate, be manufactured domestically, confirmed fully operational by seller, and meet other base guidelines. The warranty aims to promote purchase reassurance.
Simultaneously released was Mercari's 2D Barcode VIR Upload functionality to alleviate listing burden for sellers. By scanning their existing reports using smartphone cameras, key data including trim specs, recorded damage, descriptor terms etc. automatically prepopulates listings, enabling accuracy while accelerating listings.
Advantages of Buying a Car on Mercari
The sheer range of vehicles offered and the absence of fees are a major perk, from JDM classics to modern rides to hidden gems in unlikely places. Additionally, since transactions are conducted directly between users, there are no intermediary fees, allowing you to save on transaction costs.
Disadvantages of buying a car on Mercari
- Inconsistent Vehicle Condition and Quality: Listings may oversell or understate wear, damage or deficiencies impossible to confirm remotely through photos and descriptions alone.
- Dispute and Complication Risks: When directly transacting high-value goods, room for communication breakdowns, dishonest dealings, uninsured mishaps or uncompensated quality disagreements increases.
- Potential Hidden Costs: Posted sale prices seldom account for taxes, transport coordination, ownership processing fees which accumulate quickly. Lack of clarity on total expenses can lead to misunderstandings and disputes during or after transactions are completed.
- Limited Post-Purchase Protections: Purchased used cars through individual sellers forfeit many safeguards expected at certified dealerships around reliable warranty support, responsible maintenance planning and cohesive troubleshooting procedures.
It's essential to understand these disadvantages thoroughly and exercise caution when purchasing a used car.
In Summary
Mercari offers a unique opportunity for car buyers with its wide selection and the absence of intermediary fees. However, potential buyers should be aware of the platform's drawbacks, including variability in vehicle quality, the risk of transaction disputes, and a lack of transparency regarding additional costs. It's crucial to conduct thorough due diligence, possibly seek third-party warranties, and understand Mercari's user protection policies. By carefully considering these factors, buyers can navigate the platform more effectively and make informed decisions.
