Can a Foreigner Buy a Car in Japan? A Complete Guide
Purchasing a car in Japan as a foreigner is entirely possible, but it comes with specific legal and administrative requirements. Whether you’re an expatriate, long-term resident, or even a tourist, understanding the process can help make your car-buying experience smooth and hassle-free.
Here’s everything you need to know about buying a car in Japan as a foreigner.
1. Residency Status Matters
To legally purchase and register a vehicle in Japan, you must have a valid residency status, such as a work visa, student visa, or permanent residency. Tourists generally cannot buy cars for regular use due to registration and insurance requirements.
2. Japanese Driver’s License Requirement
You’ll need a valid Japanese driver’s license or an International Driving Permit (IDP) recognized by Japan. However, IDPs are only valid for one year, so long-term residents should consider obtaining a Japanese license.
3. Shaken Inspection and Maintenance Costs
All vehicles in Japan must undergo a government inspection called shaken every two years. This includes checking emissions, safety features, and general condition. It’s a costly process, so factor this into your long-term ownership budget.
4. Registration and Insurance Requirements
As a foreigner, you must register the car under your name and address in Japan. You’ll also need compulsory liability insurance (jibaiseki hoken ) and optional comprehensive coverage, which is highly recommended.
5. Buying New vs. Used Cars
Many foreigners opt for used cars due to lower costs and availability. However, be mindful of the shaken history and maintenance records. Buying from certified dealers or auction sites like Goo or Car Sensor can offer better transparency.
FAQs
Q: Can I import my car from abroad instead of buying in Japan?
A: Yes, but the process is complex and expensive. Import duties, compliance with Japanese regulations, and re-registration can make it costlier than buying locally.
Q: Do I need proof of address to buy a car in Japan?
A: Yes, you’ll need a residence certificate (juminhyo ) or similar document showing your registered address in Japan.
Q: Can I finance a car purchase as a foreigner in Japan?
A: While possible, many Japanese banks require a co-signer or permanent residency for auto loans. Most foreigners opt to pay in cash or through international financing options if available.