In most of Japan’s major cities, you don’t need a car. But if you’re in a rural area, a suburb, or just prefer the convenience, owning a car in Japan is very doable as a foreigner.


Do You Need a Car?

You probably don’t if you’re in:

  • Tokyo, Osaka, Nagoya, Fukuoka, Kyoto
  • Any city with good train coverage

You probably do if you’re in:

  • Rural towns with limited bus service
  • Suburbs where the nearest station is 30+ minutes away
  • Areas with harsh winters (Hokkaido, Tohoku, etc.)

Requirements Before You Buy

1. Japanese Driver’s License

You need one of:

  • International Driving Permit (IDP) — Valid for 1 year from your arrival date. Not a long-term solution.
  • Converted Japanese license — Convert your home country license (available for most countries)
  • Full Japanese license — From driving school if your country isn’t on the conversion list

See our full guide: Getting a Driver’s License in Japan as a Foreigner

2. Proof of Parking Space (車庫証明)

You must show you have a parking spot before you can register a car. This is not optional.

Options:

  • Rent a monthly parking space (contract required)
  • Have parking at your apartment (get a letter from your landlord)

Cost: ¥5,000–15,000/month in suburbs, ¥20,000–50,000/month in central Tokyo.

3. Residence Card (在留カード)

Required for all official transactions.


New vs Used Car

Japan’s used car market is exceptional. Cars are well-maintained, and the stigma against used cars means prices are lower than you’d expect.

Where to buy:

Budget ranges:

  • Kei car (軽自動車), 5–8 years old: ¥300,000–700,000
  • Small sedan/hatchback, 5–7 years: ¥500,000–1,200,000
  • Hybrid (Prius, etc.), 5–7 years: ¥800,000–1,800,000

New Cars

Dealers in Japan will work with foreigners. Bring your residence card, bank account details, and a Japanese speaker if your Japanese is limited.

Popular choices: Toyota Aqua, Honda Fit, Suzuki Swift, Daihatsu Mira


Understanding Shaken (車検)

Shaken (車検) is Japan’s mandatory vehicle inspection. All cars require it:

Car AgeInspection Frequency
New carAfter 3 years
OngoingEvery 2 years

Cost: Typically ¥100,000–200,000 including fees, taxes, and any required repairs.

When buying a used car, always check when the next shaken is due. A car with fresh shaken (passed recently) is worth more — and saves you immediate cost.


Total Cost of Car Ownership in Japan

ExpenseAnnual Cost
Parking¥60,000–600,000
Insurance (自賠責 + 任意)¥80,000–150,000
Road tax (自動車税)¥30,000–50,000
Gas (varies)¥60,000–120,000
Shaken (amortized)¥50,000–100,000
Total¥280,000–1,120,000/year

Cars are significantly cheaper to run in rural areas (parking especially). In central Tokyo, the parking alone can exceed ¥600,000/year.


Kei Cars (軽自動車)

For most foreigners, a kei car is the smart choice:

  • Smaller engine (≤660cc), lower taxes
  • Annual road tax: only ¥10,800
  • Better parking availability
  • Excellent fuel economy
  • Very common and easy to maintain

Models: Suzuki Hustler, Daihatsu Tanto, Honda N-Box, Nissan Dayz


Car Insurance

Two types are required:

  1. Compulsory insurance (自賠責保険) — Mandatory, cheap (~¥13,000/2 years), covers third-party injury only
  2. Voluntary insurance (任意保険) — Strongly recommended, covers damage, theft, your own injury

Insurance companies accepting foreign residents:

  • Sony Sonpo (ソニー損保) — Competitive online quotes
  • Zurich Insurance — English support
  • Mitsui Sumitomo Insurance

Compare quotes at: 保険スクエアbang!