We all know Engine of any vehicle is single most factor that drives value of any vehicle. If an engine of a 50,000 US dollar Car or Year 2011 or 2012 fails, the value of the car dips almost 90%. Engine is the heart of any vehicle. Therefore Used Engine sales has become a big business in United States for most Salvage Yards. U.S automotive history is a great example that shows that US consumers have always relied on a salvage yards for a regular supply of Used Engines for over five decades. This concept has shown a big shift for last two decades because Engines for Japanese brand vehicles started entering U.S market around 1985. Japanese Used engines were named JDM which meant from " Japanese domestic Market" to identify them because people in the U.S relished the fact that they were low mileage, that Japanese drove only for 40,000-50,000 miles and had to discontinue using their vehicle and the well established belief that Japanese quality is the best paved the way for these Japanese Engines to become very famous in United States. Back in 1990s and throughout year 2000 to 2008 U.S enjoyed regular flow of these Japanese engines. Economy was good in the U.S at the same time Yen was weak against the U.S dollar so Japanese Engines would cost close to the engine available at a local junk yard with mere 30 days warranty, compared to low mileage engine from Japan with six months warranty for almost the same price as the one available at a junk yard. Therefore most people who knew about Japanese import motors would not settle for less.
Things have changed after 2008 as Yen started become stronger and U.S economy was hit in 2008 because of the housing crisis. US dollar and Japanese Yen exchange rate fell from Us$1=Yen 120 to US$1=Y80. Cost of Japanese engines increased to over 30% in average after 2008. It became harder to find top selling Japanese used engines from Japan, as a result many importers had to close there doors and only the ones who have their office in Japan who could source easily and the ones who had large amounts of cash in the balance sheet could survive. The demand still remained strong because there is no comparison between Japanese motor from junk yard where high mileage engines with 30 days warranty is the only option and a low mileage Japanese motor that were sold generally with six months limited warranty.
Therefore the current scenario is same with a little bit of improvement in exchange rate. In 2013 Us$1=Yen100 on an average but there are very few importers. Bottom-line is Japanese Used Engines will remain in demand and we recommend U.S consumers to try there best to find them instead buying tired and high mileage motors from a Junk Yard.