Japanese Car Auction Grading
The grade is the overall assessment of the car which gives a quick idea of the general condition of the car. There are usually two grades;
Here's more detail on grading below;
Overall Grade
Grade 7,8,9 or S is given to a new car that is being sold in an auction with only delivery mileage
Grade 6 is given to a car with a little more than delivery mileage
Grade 5 to a car with exceptionally low mileage and in mint condition
Grade 4.5 is in excellent condition, but can also have mileage of up to 100k
Grade 4 is a good, solid car. Mileage is not an issue(could be low or high)
Grade 3.5 is similar to a grade 4 but may need more paint and panel work. Alternatively, it may have high mileage
Grade 3 often has either serious paint and panel, or it has had a panel replacement somewhere. Grade 3 cars can also be basically grade 3.5s in terms of condition, but with very high mileage.
Grade 2 is reserved for vehicles in the worst condition. This does not mean that they are exactly write offs but will often have corrosion, perhaps corrosion holes and other serious issues.
Grade 1 Can be one of the following;
Grade A, R, RA are repair history cars. The auctions definition of repair history is a car that has had an inside panel repaired in some way. This can range from extremely minor to major.
Exterior and Interior Grading
Some auctions have a letter, A, B or C to denote the exterior and interior grade separately. These letters can be seen near the overall grading number. A is excellent, B average and C below average.
The exterior condition of the car can be ascertained by looking at the car map while the interior grade is normally noted in the translation of the auction sheet.
Car Map
Usually, the number after the letter denotes the severity of the damage. 1 = light, 2 = moderate, 3 = significant, 4 = major

A Scratch
U Dent
B Dent with scratch
W Wave, or repaired area
S Rust (orange discoloration on the surface)
C Corrosion (rust has progressed so that now the original metal is now flaking away)
P Paint marked
H Paint faded
XX Replaced panel/item
X Item that needs replacing
G Stone chip on glass
Y Crack
E Dimple
Auction grading is aimed to give the best information so that one can make a good, informed decision about whether to get the car or not.