Buying a car in Japan can be a rewarding experience, whether you’re a local or an expatriate. However, understanding the costs involved is crucial before making a purchase. From new vehicles to used imports, prices vary widely based on several factors including brand, model, condition, and import taxes.
1. New Cars in Japan
Popular domestic brands like Toyota, Honda, and Mazda dominate the Japanese market. A brand-new compact sedan typically starts from ¥2 million to ¥3 million (approx. $13,000–$20,000 USD) , while SUVs and luxury models from brands like Lexus or BMW can range from ¥4 million to over ¥10 million ($26,000–$70,000 USD) depending on trim and features.
2. Used Cars in Japan
Used cars are a popular and cost-effective option. Well-maintained pre-owned vehicles can start as low as ¥300,000 ($2,000) for older models, while newer ones with low mileage typically range between ¥800,000 and ¥1.5 million ($5,500–$10,000) .
3. Importing a Car from Japan
If you’re buying from abroad, factor in auction fees, shipping, customs, and import duties. Total added costs can increase the final price by 20% to 50% , depending on your country’s regulations and transport distance.
4. Taxes and Registration Fees
Japan imposes various taxes such as the Automobile Tax and Weight Tax, which are renewed annually. When purchasing a used car, re-registration may cost an additional ¥30,000–¥50,000 ($200–$350) .
5. Monthly Ownership Costs
Owning a car in Japan also includes recurring costs like insurance (¥8,000–¥15,000/month or $55–$100 ), fuel (approx. ¥170 per liter or $1.20 ), and mandatory bi-annual inspections (shaken), which can cost up to ¥100,000 ($700) every two years.
Frequently Asked Questions (FAQs)
Q: Is it cheaper to buy a used car in Japan than elsewhere?
A: Yes, due to strict inspection standards and high turnover rates, Japanese used cars are often more affordable and reliable compared to other global markets.
Q: Can foreigners buy cars in Japan?
A: Yes, but you’ll need a valid driver’s license (or international permit) and proof of residency. Some dealers may require a Japanese guarantor or bank account.
Q: How much does car insurance cost in Japan?
A: Basic liability insurance starts around ¥8,000/month ($55) , while comprehensive coverage can range from ¥12,000 to ¥15,000/month ($80–$100) .