Total landed cost is everything a vehicle costs you before it is sold: the base invoice amount (auction price and fees) plus parts and repairs, freight and the recycle fee. Add every line to the base invoice, then subtract the total from the sale price to get profit per car. Doing it per vehicle, not per month, is what shows which cars actually make money.
What goes into total landed cost
| Line | What it covers | Where to record it |
|---|---|---|
| Base invoice amount | Hammer price and the auction fees on the invoice | Purchase record |
| Parts | Parts, repairs, detailing and preparation before sale | Per-vehicle cost |
| Freight | Inland transport in Japan, and shipping if you sell on a delivered basis | Per-vehicle cost |
| Recycle fee | Recycling charge (リサイクル料金) attached to the vehicle | Per-vehicle cost |
Use whichever field matches how you account for each cost, but be consistent. The goal is one number per vehicle that nobody has to rebuild from emails and receipts.
Worked example (illustrative figures)
| Line | Amount |
|---|---|
| Base invoice amount | ¥1,800,000 |
| Parts | ¥60,000 |
| Freight | ¥85,000 |
| Recycle fee | ¥12,000 |
| Total landed cost | ¥1,957,000 |
| Sale price | ¥2,250,000 |
| Profit before tax effects | ¥293,000 |
Three mistakes that distort profit
- Averaging freight across a month instead of assigning it to the vehicle that used it.
- Leaving the recycle fee or small repair costs out because they were paid separately.
- Comparing a tax-inclusive purchase price with a tax-exclusive export sale price. See the consumption tax guide for how export sales are treated.
A simple routine that works
- Create the vehicle record the day you win it, with chassis number, auction and invoice amount.
- Add parts, freight and recycle fee as the invoices arrive.
- Record the sale with its date and amount; read profit straight from the vehicle record.
- Review profit by period, not just by car, so a slow quarter shows up early.
How Car Business Pro helps
Car Business Pro stores base invoice, parts, freight and recycle fee against each vehicle, calculates total landed cost automatically and shows profit the moment a sale is recorded. Reports break buying and selling details out side by side so you can audit any number.
Quick answers
What is landed cost for a used car?
It is the full cost of the vehicle to you before sale: base invoice amount plus parts, freight and the recycle fee. Subtract it from the sale price to get profit per vehicle.
Should freight be split across vehicles?
Yes. Assign freight to the specific vehicle (or split a shared shipment fairly across the vehicles in it) so profit per car reflects what each car really cost to move.