Things to Consider when Buying Second-Hand or Used Cars in Japan

WeXpats

2021/09/10

Life in Japan

As good as public transport is in Japan, you may find owning a vehicle more convenient and travel efficient depending on where you stay and your travel needs. New cars are expensive so consider second-hand if you are on a budget or not planning to stay for long.

Table of Contents

Short Intro to Japanese Cars
Buying Used or Second-Hand Cars in Japan
How to Buy and What do I Need
Summary

Short Intro to Japanese Cars

Japanese cars are well known for their innovation, reliability and durability. This is reflected in the high number of sales for Japan-made cars. According to a 2020 data survey by Budget Direct, Toyota is the best-selling brand of cars in more than 40 countries around the world. This is a follow up to the Toyota Corolla being the most sold car for 15 years consecutively, a huge testament to the trust consumers have to the brand and Japanese cars.

※ Budget Direct, “The best-selling car in nearly every country”

Japanese Car Brands

Aside from trusty Toyota, what other Japanese car brands are there in the market?

As most car brands in the world, Japanese cars can be divided into two categories; mass market or general cars, and luxury cars. Mass market cars are known for their affordability and reliability, whereas luxury cars are a sign of prestige with higher quality make and premium features. Here are some brands to get you better acquainted:

Mass Market Brands

Toyota, Honda, Subaru, Nissan, Mazda, Mitsubishi, etc.

Luxury Brands

Lexus (under Toyota), Acura (under Honda), Infiniti (under Nissan), Mitsuoka, etc.

The New VS The Old

Owning a brand new car is a lifetime achievement that most people aim to reach. It can be difficult without proper financial planning and is not a decision to be made hastily. But what exactly makes a new car better than a used one? Let’s have a look.

New Car

Used Car

Pros

・Brand new

・Full warranty coverage

・Latest technology

・Better secondhand value

Pros

・Lower price

・High quality available

・Tested with time

Cons

・Expensive, full price

・Too new, reliability unconfirmed or expensive to repair

・High depreciation

Cons

・Used

・Maintenance and repairs

・Low depreciation

Whether it is a new car or used one, they both carry their own pros and cons. It is entirely up to the buyer to determine which is more suitable.

Writer's Pick

Buying Used or Second-Hand Cars in Japan

Seriously thinking of getting a second-hand car? Or still deciding?

Here are some things to consider which may help you make up your mind.

Pre-Preparation

Budget

Set a budget for the price you are willing to pay for a used car. Set aside a reasonable sum for maintenance and repairs.

Research

A thorough background check on the make and model of the car you are interested in is important. There’s a lot of information you can gather on the internet from previous buyers about its reliability, price range, and other useful information. You can also ask a mechanic for his opinion including availability and price of spare parts that you may need.

Choosing A Car

Contact and Visit Seller/Dealer - Document Check

Once you have found a car you like, the next step is to contact the seller or dealer and pay a visit. In Japan, dealerships are usually located in the outskirts. Driving is recommended but some dealers provide pickup service. You will be provided with the car’s profile information (or sorts). Check the documents thoroughly for important details:

・History of Repairs and Parts Replacement

・History of Purchasers

・Remaining Time to Syaken (Car Inspection)

・Distance Ran

・Price Quotation

and more!

Ask, ask, ask!

Find the price too low compared to your research? Ask!

Price too high? Ask!

Missing information? Ask!

When in doubt, just ask! As great a country as Japan is, people are still people. If you are unlucky you may encounter a dealer/seller trying to cover the wool over your eyes. If the price is ridiculously low, there may be some issues with the car.

Physical Inspection

Done with the document check? Ascertain the vehicle’s condition with your own eyes. Check the engine bay, the interior, doors, wheels, mirrors, boot, every inch if possible. If you have a personal mechanic or experienced friend, invite them along to assist and advise on whether it is a good purchase.

Test Drive

Not all dealers allow test driving in Japan but you can always ask. You may be allowed to do a quick spin around the compound, or the dealer will bring you for a ride.

After Purchase

Maintenance, Repairs, and Parts Replacement

A common issue with used cars is wear-and-tear. Good thing you considered this when preparing a budget! Try not to delay the replacement of parts and repairs as this will lead to bigger problems in the long run.

Vehicle Taxes and Insurance

All car owners must pay vehicle tax and sign-up for car insurance.

Vehicle Taxes includes

Car Tax (自動車税)
Car Weight Tax (自動車重量税)
Environmental Performance Rate (環境性能割)

Insurance includes Mandatory Vehicle Liability Insurance (自賠責保険)

※ Nectage, “中古車購入における自動車税の金額は？課税の仕組みなど気になる情報を解説”

Shaken (車検)

A compulsory vehicle inspection that is conducted every 2 years to ensure vehicles are road-worthy. For detailed information including cost breakdown, check the below resource link.

※ OIST, “JCI inspection - Shaken(車検)”

Where to Buy Used Cars in Japan

There are many ways to get your hands on a used car, such as:

Used Car Dealers
Car Auctions
Online Car Auctions or Used Car Websites
Official Car Brands
Family, friends, colleagues, acquaintes

Here are some official brand and trusted websites:

How to Buy and What do I Need

You’ve selected the car, done the document check, over with the test drive. Now how to finalize your purchase. First things first, make sure you’ve gone through the quotation and weed out special services and accessories you do not need. These may include car washing, mat replacement, interior cleaning, waxing, drop-off, etc. You may find a significant drop in the price.

Aside from cash and loan documents, other documents that you require to finalize the sale will differ depending on what type of car you are buying (whether it is a Kei car (lightweight car) or a regular car), who or where you are buying the car from (whether it is from an individual, auction or dealership sale), and payment by cash or loan.

Generally, you will require the following:

For Kei Car

Resident Card
Personal Seal
Certificate of Liability Insurance - From vendor
Vehicle Inspection Certificate - From vendor
Resident Certificate - From ward office
Parking Space Certificate - From police station
Power of Attorney - If the vendor acts on your behalf, from the vendor.

For Regular Car

Resident Card
Registered Personal Seal
Personal Seal Certificate - From ward office
Certificate of Liability Insurance - From vendor
Vehicle Inspection Certificate - From vendor
Parking Space Certificate - From police station
Power of Attorney - If the vendor acts on your behalf, from the vendor.

※ Goo, “中古車の購入に必要なものとは？”

Summary

Buying a used car in Japan can be a difficult process especially if you are not familiar with Japanese but it is well worth the trouble when you can cruise along the highway in your new ride.

If you want to buy a new car, check out our article about it here.

We also have articles about renting cars in Japan as well as
ETC cards.