Buying a car in Japan as a foreigner involves paperwork, parking certificates, and rules that surprise most people. Get it wrong and the process stalls completely. This guide walks you through every step from finding the car to driving it home.
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
Used Cars (中古車) — Recommended for Most
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:
- Goo-net Exchange — Largest used car marketplace, some English
- CarSensor — Similar, good search tools
- USS Auction — Dealer auctions (need a registered dealer)
- Mercari Cars — Private sales, inspect carefully
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 Age | Inspection Frequency |
|---|---|
| New car | After 3 years |
| Ongoing | Every 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
| Expense | Annual 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:
- Compulsory insurance (自賠責保険) — Mandatory, cheap (~¥13,000/2 years), covers third-party injury only
- 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!