Understanding Japanese Auction Grades: What 4, 4.5, R, and S Actually Mean

Japan's used-car auction system is built on a single idea: an independent inspector grades every vehicle before it crosses the block, and that grade is public. Once you understand the grading scale, you can read the condition of a car in Japan as easily as reading the odometer.

Here is the complete grading system we use to evaluate every vehicle before we bid.

The overall auction grade

The headline grade is a number (or letter) assessing the whole vehicle. It is the single most important figure on the inspection sheet.

| Grade | Meaning | |-------|---------| | S | Vehicle is essentially new, under ~5,000 km, showroom condition. Extremely rare at auction. | | 5 | As-new, very low kilometres, no faults. A 5 is exceptional. | | 4.5 | Excellent. Minor marks only, well looked after. The grade we target for most stock. | | 4 | Good condition. Some minor scratches or dings consistent with age; a solid, honest car. | | 3.5 | Average. More noticeable marks, possibly a small repair. Still very usable. | | 3 | Below average. Visible wear, multiple repairs needed. | | 2 / 1 | Poor. Significant damage or heavy wear; usually not worth importing. |

A grade 4.5 is the sweet spot for a JDM import — a vehicle that has been genuinely cared for, presents beautifully, and still represents honest value versus a near-new grade 5 or S car.

The grades that mean "stop"

• Grade R — the vehicle has had accident repair. Structural integrity may be affected.
• **Grade **** — major accident damage, often un-repaired. These are project cars at best.

We do not retail grade R or grade ** vehicles. Every car in our inventory is accident-free unless we disclose the history in full.

The interior grade (A, B, C, D)

A separate letter grades the cabin:

• A — immaculate interior.
• B — clean with light, expected wear.
• C — visible wear, minor tears or stains.
• D — heavy wear, damage requiring repair.

For a driver-quality JDM car, an interior grade of B is perfectly normal and presentable. We look for A or B, and pass on anything graded C or below.

The exterior marks

The inspection sheet diagrams every exterior imperfection with a universal shorthand:

• U1, U2, U3 — dents/scratches sized 1 (small) to 3 (large).
• W — wave in a panel, suggesting prior repair.
• S — rust.
• P — previous paint or respray.
• X — a part that requires replacement.

A grade 4.5 car with a couple of U1 marks is exactly what you would expect — minor, honest wear on an otherwise excellent vehicle. A car covered in W and P flags is a different proposition entirely, and we pass on those.

How we use grades

We combine the overall grade, interior grade, and exterior marks to build a complete picture of a vehicle before we ever place a bid. That is why every car we retail comes with a documented condition history — not a salesperson's claim, but the independent auction inspector's written assessment.

Want to understand the grade of a specific car in our yard? Check its detail page, or get in touch and we will walk you through the original inspection sheet.