Here is the issue...the 3 year limit was imposed because these very same groups started bringing in junk. Countries from Kenya to Tanzania all the way to SL had this issue and SL was the first to enact this as an anti-dumping policy.
You would think that with a 5 or even 7-year age limit, they would bring the actual high auction-grade cars as is. But no. They brought in the cheap junk. On the plus side these cars were just mechanically junk and not welded up death traps. Extending the age restriction would bring benefits you have stated if and only if we have strict import and registration inspections. Which we don't and have not been able to establish for 4 decades.
I strongly believe that these guys are pushing for older cars just so that they can keep a higher margin for themselves. They are not going to buy the 1.6mil Allion/Premio. They are going to buy the 700k ones from the damage/parts car corner and sell it for the same price as the 1.6mil. <Sorry...after being here I have lost all respect for Sri Lankan car exporters>. True....forex leaving the country will be less as the exporters pay peanuts for these cars...but they are not saying anything about the masses paying actual lower purchase prices. All the manufacturers have Used Car dealerships.
Also..hate to break it to you but you don't get that many 5- to 7-year-old Premios and Allions anymore in Japan, and the numbers are dwindling by the month. Almost all of them are gone/going to countries in Africa, Bangaladesh, etc.. Right now there are 37 Premios for sale in the whole of Japan within this age range. Also, it is about 1.6mil on average at auction (there are a few hundred newer vehicles..mostly rentals or fleet cars, it seems, and those are a bit more expensive). In contrast, a 3-5-year-old Corolla sedan 1.8 Hybrid or a slightly newer 1.2L petrol WxB and the 1.2L hatchback are the same price. So, you really are not saving that much money by going for an older Premio/Allion in good condition. You might as well buy the newer Corolla. There are models where the price between a 3-5 year old car is quite high compared to a 7 year old car...those are either large cars like the RAV4 (attracting higher import taxes) or cars like Vitzes. So we are looking again at the usual cars we have...Vitzes, Axios, etc... Which is exactly what I believe these guys are targeting anyway (you can literally buy a 7-year-old Vitz/Aqua for about 300,000 yen). Now..considering that it was these same guys who bought these cars during the early days of the ban and jacked up the prices...do you really think they are going to drastically reduce the prices (also....they are probably out of stock of used cars as well)?
On the plus side, you do still get the Axio and Fielder used or brand new. Toyota has been trying to kill the model, but it keeps on selling like crazy both domestically (because that is the only remaining narrow-body sedan/wagon) and for export (the waiting list for a brand new Axio/Fielder is 6 to 8 months).
The bitter truth that is hard to swallow is that cars like the Civic and Corolla have moved on and are no longer the reasonably priced entry-level cars they used to be. The segment is now taken over by cars like the Yaris,Fit, etc...
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