You've found a car at a Japanese auction that looks perfect in the photos. The price is right. The mileage seems low. But between you and that car is a document you can't read, written in Japanese, with a grading system that uses numbers, letters, and symbols that mean nothing without context. The auction sheet is the most important document in a JDM import transaction, and understanding it properly can save you from making a very expensive mistake.

This is the complete guide to reading a Japanese car auction sheet. Learn this and you'll be a significantly more informed buyer.

The Grade System

Japanese auction houses use a standardised grading system, though there are slight variations between auction houses (USS, TAA, JU, and others). The main grade is a number from 1 to 6, with sub-grades using letters:

Grade 6: New or near-new condition, essentially perfect. Extremely rare and commands a significant premium.
Grade 5: Excellent condition. Minimal use, extremely clean inside and outside. No accidents, no significant defects.
Grade 4.5: Very good condition. Light use, minor cosmetic imperfections only. No accidents.
Grade 4: Good condition. Normal wear for the age, possible very minor dents or scratches, no significant damage. The most common grade for well-maintained used cars.
Grade 3.5: Average condition. Some cosmetic defects, possible light fading or minor dents. Still driveable and presentable.
Grade 3: Below average. More significant cosmetic issues, possible minor rust, scratches more than minor. Mechanical inspection important.
Grade 2: Poor condition. Significant cosmetic and possibly mechanical issues.
Grade 1: Very poor condition, significant damage.
Grade R: Accident repaired. The car has been in an accident and repaired. Independent of the number grade — an R3 is a repaired car in average condition.
Grade RA: Accident repaired with airbag deployment. A significant event that indicates the accident was serious enough to trigger the airbag system.

For performance JDM cars, aim for Grade 4 minimum. Grade 4.5 and above for collector-quality vehicles.

Reading the Diagram

The auction sheet includes a diagram of the car (usually top-down and side views) with letters and numbers marking specific areas. These indicate defects at each location:

A or A1-A3: Small scratches. A1 is barely visible, A3 is clearly visible.
B or B1-B3: Dents without scratches. B1 is very small, B3 is significant.
C or C1-C3: Rust marks. C1 is surface rust, C3 is deeper corrosion.
D or D1-D3: Wave or ripple in the panel (typically indicating previous repair). This is critical — waves indicate filler or poor repair work.
E or E1-E3: Dent with scratch combination.
P or P1-P3: Panel replacement or painting. The higher the number, the more extensive the work.
U: Crack or hole in the panel.
X: Needs replacement (cannot be repaired).
XX: Already replaced.
S or S1-S3: Scratches through to the metal (rust potential).
W or W1-W3: Windshield chips or cracks.

Study the diagram carefully. D marks (waves/ripple) in the door, sill, or roof area indicate previous accident repair. Multiple P marks on adjacent panels suggest a significant repair job. C marks on structural areas (floor, sills, inner arches) are serious.

Interior Condition Grade

Interior has its own grade, typically A through D or 1 through 5 depending on the auction house. This covers the condition of seats, carpet, dashboard, and headlining. An A or 5 interior is near-perfect; a D or 1 interior is significantly worn or damaged. For cars being imported for daily use, interior grade matters. For project cars, less so.

Key Boxes to Check

Most auction sheets have specific checkboxes or fields for:

Odometer reading: In kilometres. Verify this against wear on steering wheel, pedal rubber, and seat bolsters — a 60,000km car should show matching wear on these items.
Engine start: Was the engine started at auction? A checked box means yes.
Equipment list: What factory options the car has — navigation, sunroof, leather, etc.
Modification notes: Some auction staff note obvious modifications, though this is not comprehensive.
Auction house inspector notes: Free-text comments from the inspector. Have these translated — they often contain specific issues that don't fit the standard grading codes.

What Grade to Buy By Car Type

For daily drivers: Grade 3.5 minimum, ideally Grade 4. Avoid R grades unless you've inspected the repair quality. For collectible JDM cars (GT-Rs, Type Rs, Supras): Grade 4 minimum, Grade 4.5 for unmodified examples. Grade R vehicles should be avoided for collector purposes entirely. For project/build cars: Grade 3+ is acceptable if the engine and mechanical components check out. Body can be repaired; rust-compromised structure cannot easily be fixed.

The auction sheet is your first line of defence against buying a problem car. Learn to read it, have a professional translate the inspector notes, and never skip the document review just because the photos look good. The photos show what the seller wants you to see. The auction sheet shows what an independent inspector recorded. Trust the sheet.