Is the cost of buying and maintaining a car high in Japan? What is the process?

Japanese CarsCar Purchase ProcessCar Maintenance CostsOverseas Car PurchaseAutomotive ExpensesRelocating to Japan
Created At: 8/11/2025Updated At: 8/18/2025
Answer (1)

Hey there! I see you're interested in buying and owning a car in Japan – that's something I know well. A lot of people who've just arrived in Japan get hung up on this, so let me break it down for you in plain terms.

In a nutshell: Buying a car itself in Japan can be surprisingly cheap, but the cost of owning one, especially in big cities, is genuinely high.

Let me explain in two parts: Costs and Process.

Part 1: Where Do the Costs of Buying & Owning a Car in Japan Add Up?

Let's split the money into two chunks: the one-time purchase cost and the ongoing ownership costs.

1. How Much Does Buying the Car Cost? (Purchase Price)

The price tag here really depends entirely on your budget.

  • Buying New (新車 - Shinsha)

    • Japan's "national car," the K-Car (under 660cc engine, yellow plates), starts around 1.5 million JPY. Fuel-efficient and low-tax, very popular.
    • Standard compact cars (e.g., Toyota Yaris, Honda Fit) run about 2 million - 3 million JPY.
    • Larger SUVs or MPVs start from 3.5 million JPY and go up.

  • Buying Used (中古車 - Chūkosha)

    • This is the choice for most people. Japan's used car market is very mature, and cars are generally in good condition.
    • Tens of thousands to hundreds of thousands of JPY: Can get older but functional runabouts. Requires some car knowledge to avoid pitfalls.
    • 500,000 - 1.5 million JPY: This is the sweet spot! You can get well-maintained, relatively recent mainstream family cars. Super cost-effective.

【Key Point】Besides the car price, you also need to budget for these "on-the-road fees":

Buying a car isn't just paying the sticker price. There are mandatory fees, roughly 10%-15% of the car price.

  1. Consumption Tax (10%): On everything.
  2. Environmental Performance Levy (環境性能割 - Kankyō Seinō Wari): Tax based on the car's environmental performance. More eco-friendly = cheaper; EVs might even be exempt.
  3. Automobile Weight Tax (自動車重量税 - Jidōsha Jūryōzei): Based on vehicle weight. Paid at purchase and during inspections.
  4. Automobile Tax / Light Vehicle Tax (自動車税/軽自動車税 - Jidōshazei / Keijidōshazei): Based on engine displacement. Paid annually on April 1st. At purchase, you pay for the remaining months.
  5. Compulsory Automobile Liability Insurance (自賠責保険 - Jibaiseki Hoken): Mandatory insurance. Very low coverage, mainly for bodily injury to others.
  6. Recycling Deposit (リサイクル預託金 - Risalkuru Yotakukin): Legally required upfront payment for the car's eventual disposal costs.
  7. Handling/Processing Fees (手数料 - Tesūryō): Dealer fees for registration and plate issuance.

Summary: For a 1 million JPY used car, budget around 1.15 million JPY total.

2. Ownership is Where the Real Money Goes (Running Costs)

The real spending starts after you buy the car. Let's calculate the costs for a typical 1.5L compact car living near Tokyo.

  • 1. Parking (駐車場 - Chūshajō)

    • This is the single biggest expense, hands down! Japanese law requires proof of a fixed parking space (a "Parking Space Certificate") to own a car. No street parking.
    • Central Tokyo: 30,000 - 60,000 JPY/month is common.
    • Tokyo Suburbs/Other Major Cities: 10,000 - 20,000 JPY/month.
    • Rural Areas: Maybe just a few thousand JPY/month, or even free parking in your own yard.
    • Annual Cost: Assuming 15,000 JPY/month = 180,000 JPY/year.

  • 2. Insurance (保険 - Hoken)

    • Compulsory Insurance (Jibaiseki): Mandatory, but minimal coverage. Negligible cost.
    • Voluntary Insurance (任意保険 - Nin'i Hoken): This is the real coverage (your car, other cars, various incidents). Price depends on age, driving history, car model, coverage level. Expensive for young/new drivers.
    • Annual Cost: Typically 50,000 - 100,000 JPY/year for most people.

  • 3. Taxes (税金 - Zeikin)

    • Bill arrives every April. Higher displacement = higher tax.
    • 1.0L-1.5L car: 34,500 JPY/year.
    • K-Car: Much cheaper, only 10,800 JPY/year.

  • 4. Vehicle Inspection (車検 - Shaken)

    • First inspection for a new car is after 3 years, then every 2 years. Mandatory, strict safety check.
    • Cost includes: Mandatory Fees (Weight Tax, Compulsory Insurance) + Inspection Fee + Potential Parts Replacement/Repair Costs.
    • Cost: If the car is in good shape with no major replacements needed, around 70,000 - 120,000 JPY. If you need tires, brakes, etc., it can be much higher.
    • Average Annual Cost: Assuming 100,000 JPY / 2 years = 50,000 JPY/year.

  • 5. Fuel & Highway Tolls (ガソリン代 & 高速代 - Gasorindai & Kōsokudai)

    • Fuel: Prices track international rates (~170 JPY/liter currently). Daily commuting can easily cost 10,000-20,000 JPY/month.
    • Highway Tolls (ETC): Expensive! Tokyo to Osaka one-way is over 10,000 JPY. Less if you don't drive long distances often, but a big cost for road trips.
    • Annual Cost: Assuming 10,000 JPY/month on fuel = 120,000 JPY/year.

  • 6. Regular Maintenance (メンテナンス - Mentenansu)

    • Oil changes, tires, car washes, etc.
    • Annual Cost: Budget 20,000 - 30,000 JPY to be safe.

Total Annual Cost Estimate: Parking (180,000) + Voluntary Insurance (70,000) + Tax (34,500) + Shaken (50,000) + Fuel (120,000) + Maintenance (25,000) = Approx. 480,000 JPY/year.

That averages out to needing about 40,000 JPY (roughly 2000 RMB) per month just for the car. This doesn't even include highway tolls or unexpected repairs!

Conclusion: If you live in places like Tokyo or Osaka with excellent public transport, buying a car just for commuting is very cost-ineffective. But if you live rurally, have kids, or love weekend getaways, a car becomes a necessity, and the cost is worth it.

Part 2: What's the Process for Buying a Car in Japan?

The process itself isn't too complex, but the paperwork is unique. Dealers usually guide you through it.

Step 1: Secure the "Parking Space Certificate" (The Most Crucial Step!)

In Japan, you must prove you have a parking spot before buying a car. This is the 「車庫証明書」(Shako Shōmeisho - Parking Space Certificate).

  • If You Rent:
    1. Contact your landlord/property management to rent a parking space.
    2. They'll provide a 「保管場所使用承諾証明書」 (Hokanbasho Shiyō Shōdaku Shōmeisho - Parking Space Usage Consent Certificate), possibly with a small fee.
  • If You Own Your Home:
    1. Fill out a 「保管場所使用権原疎明書面（自認書）」 (Hokanbasho Shiyōkengen Somei Shomen (Jininsho) - Parking Space Usage Rights Affidavit).
  • Then:
    1. Take the above documents, plus a map/diagram of the parking spot, to the Traffic Division of your local police station.
    2. Police will physically inspect the spot to confirm size and availability.
    3. Receive the official 「車庫証明書」 within a few days.

Note: K-Cars do not require this certificate upfront in many areas outside the capital region. You can register after purchase – a major advantage of K-Cars.

Step 2: Choose a Car & Find a Dealer

  • New Car: Go directly to brand dealerships (ディーラー - Dīrā) like Toyota, Honda, Nissan.
  • Used Car:
    • Large Chains: Gulliver, Bigmotor, Nextage. Large inventory, warranties, reliable.
    • Online Platforms: Carsensor, Goo-net. Search nationwide inventory, then visit the physical dealer.
    • Local Small Dealers: Prices might be more negotiable; good for savvy buyers hunting deals.

Step 3: Prepare Your "Big Three" Documents

You'll need these for signing the contract:

  1. Residence Card (在留カード - Zairyū Kādo): Proof of identity.
  2. Residence Certificate (住民票 - Jūminhyō): Issued by your local ward/city office (Kuyakusho/Shiyakusho), proving your address. Valid for ~3 months.
  3. Seal Registration Certificate (印鑑証明書 - Inkan Shōmeisho):
    • This is unique. You need a registered personal seal (実印 - Jitsuin) at your ward/city office.
    • After registration, you can get the 「印鑑証明書」 to prove the seal is yours. Essential for major purchases like cars or houses.
    • If you don't have one, get a seal made and register it ASAP.

Step 4: Sign Contract, Pay, Wait for Pickup

  1. Choose your car, negotiate the price. The dealer provides a detailed quote (見積書 - Mitsumorisho) listing the car price and all fees.
  2. Review, sign the contract, and submit your "Big Three" and Parking Certificate.
  3. Pay. Full payment or arrange a car loan (ローン - Rōn).
  4. Wait. The dealer handles the ownership transfer (名義変更 - Meigi Henkō) and registration. Takes about 1-2 weeks.
  5. Pickup (納車 - Nōsha)! The car will be cleaned, features explained, and you drive your new ride home!

Hope this super-detailed guide helps! Having a car in Japan really expands your life radius – weekend trips to the beach or mountains for hot springs are great for quality of life. The key is crunching the numbers based on where you live and your lifestyle to see if it's worth it for you.

Created At: 08-11 14:33:45Updated At: 08-12 03:19:06