Tackling JDM Repairs: Accurate Estimates and Importing Hard-to-Find Parts
The influx of 25-year-old cars into the U.S. from Japan and Europe has been steadily increasing, with an estimated 20,000 sales in 2024 compared to fewer than 300 in 2009. This trend is driven by the availability of popular high performance Japanese Domestic Market cars (JDM’s) that were showcased in the Fast and Furious movie franchise, as well as ’boutique’ cars from Japan or Europe like the Nissan Figaro, Land Rover Defenders, and Mercedes 2-door G-Wagons. U.S. collectors are increasingly seeking out these unique and rare vehicles, contributing to the growing demand for 25-year-old imports. This trend reflects the appeal of vintage and distinctive cars that were not originally available in the U.S. market.
These vehicles didn’t meet U.S safety, crash standard or emission standards previously until the Imported Vehicle Safety and Compliance Act of 1988, commonly known as the 25-year rule, was established by the U.S. Senate to regulate the importation of vehicles into the United States. This law requires that foreign-made vehicles under 25 years old must comply with the Federal Motor Vehicle Safety Standards (FMVSS) before they can be legally imported and driven in the US. This is to ensure that imported vehicles meet U.S. safety, crash standard, and emission standards. An exception to this rule is made for classic or historic vehicles that are 25 years or older. These vehicles can be registered in the U.S. without the need to comply with FMVSS regulations. This law was put in place to protect consumers and ensure that imported vehicles meet the same safety and environmental standards as vehicles manufactured in the U.S.
The 25-year rule, implemented in the late 1980s, was primarily introduced to curb the popularity of ‘gray market’ cars, which were non-US spec vehicles that were imported and sold at lower prices than those offered by licensed dealers. These vehicles often had smaller, non-5mph bumpers and retrofitted smog equipment. Now, it seems like the 25-year rule has really come back to bite us in the rear bumper, hasn’t it? An unintended consequence of this rule is the recent surge in the importation of 25-year-old cars from Japan and Europe. Import figures for the first seven months of the year indicate that these classic cars are on track to set a sales record in 2024, with an estimated 20,000 units. This trend reflects the growing interest in vintage and classic cars, as well as the appeal of rare and unique vehicles from other countries.
The emergence of vehicles with unrecognized Vehicle Identification Numbers presents a challenge for the insurance and collision industry. Insurers have managed to write policies for these vehicles despite this issue, with several large insurers already having many of these vehicles on their books. However, the inability to recognize VINs may lead to complications in processing claims, determining vehicle history, and assessing risk. This could potentially impact the accuracy of premiums and the overall profitability of insurers.
Repairing unique and rare vehicles presents various challenges for insurers and collision repairers. Writing estimates for these vehicles can be difficult when estimating providers lack labor times for these models. Additionally, finding replacement parts may require private importing, further complicating the repair process. If you have experience dealing with these issues, whether in submitting claims or performing repairs on these vehicles, we encourage you to share your insights. Your knowledge and expertise can help others in the industry navigate the complexities of repairing these unique vehicles. Please email me at [email protected] with your experiences, as we aim to gather and disseminate valuable information to benefit the wider community of insurers and collision repairers that encounter these unique vehicles.
