Buying a Car

Last updated: September 2025

In Japan, there is the usual assortment of cars you’d find in any country, but there is also a range of vehicles only available in Japan called kei cars or keijidosha (軽自動車) meaning ‘light cars’ (cars with an engine capacity of 660cc or less). They are the cheapest option, and are easily identifiable by their yellow license plates.

The main advantages of a kei car is the fuel economy, lower road toll charges, ease in parking and navigating narrow streets, cheaper shaken, and a of course, a cheaper sticker price. Disadvantages are that they are slower, smaller in size and have a lack of cargo space (especially with other passengers in the car).

White plate 普通車 (“regular car”) cars range from mid-sized to larger vehicles (cars with an engine capacity of more than 660cc). There are not any cost advantages for white plate cars, but they are certainly safer, more stable at higher speeds, and have more passenger and cargo room.

Tips on finding a car

• Ask around at your school, your city hall, your acquaintances, anyone with whom you can communicate and tell them you need a cheap car. The number of JETs who can get cars for free, or next to nothing, is amazing.
• If you can read/speak Japanese well enough, have a look second hand car online marketplaces like Carsensor or Goonet. Visit your local car dealership and see what’s available.
• Most JETs spend about ¥500,000 – ¥1,500,000 on buying their car. Keep in mind the extra upkeep costs (i.e. fuel, tolls, winter tyres, oil change, vehicle tax and even insurance) and try to account that in your budget.
• Depending on where you live, you might need to rent out a parking space from your landlord/CO (this also should be included in your budget). Ask about this and secure a spot before getting a car.
• Predecessors are a convenient and fairly trustworthy source for getting a car. Of course, be skeptical if the price seems too high, but sometimes the convenience of having one already waiting for you is worth paying a little bit extra. (see Buying from your Predecessor)
• There are a few rental companies around who offer long-term lease cars to foreigners. These are generally much cheaper than owning a car, and are great because servicing and breakdown costs are included in the lease charges.

English Speaking Car Dealerships

• Wataki Motors/Alternativa (Toyooka) – JETs around the Tajima region tend to get a long-term rental car
• HACHI BAY (Kobe)

Necessary Documents

• A valid international driver’s permit (IDP) or a Japanese driver’s license
• A valid car parking space (not required for kei cars). See more details below about the procedure
• Third-Party Liability Insurance. Do you research online or visit your local bank for this. You can also ask at the dealership what they recommend
• Inkan/Hanko. You need to get it registered at the city hall and get certification for it (印鑑証明書)
• Residence Card
• Cash

Buying used through a private sale

When you are buying a used car directly from the previous owner, there are certain registration procedures that you would need to handle (where as the dealership would normally handle it on your behalf). There are two things you will need to obtain first:

From the local police station

• (Only for white plate vehicles, kei cars do not need this) a parking permission certificate, otherwise known as the shako-shoumei (自動車保管場所証明申請書) from your local police station
• (Only for kei cars in the following areas) a notification of a storage area, otherwise known as hokanbasho-todokede (保管場所届出) from your local police station in the following cities
  • Kobe
  • Amagasaki
  • Nishinomiya
  • Ashiya
  • Itami
  • Takarazuka
  • Kawanishi
  • Akashi
  • Kakogawa
  • Himeji (the areas of Ieshima, Yumesaki, Kodera and Yasutomi are exempt)

From the seller (current owner)

• The vehicle’s inspection certification, otherwise known as the shaken-shou (自動車車検証) from the seller
• The vehicle’s compulsory insurance certificate, otherwise known as jibaiseki-hoken-sho (自賠責保険証明書) from the seller

From both the seller and buyer (you)

• Deed of Transfer form, otherwise known as the jouto-shoumeisho (譲渡証明書). This is a small slip where the seller and you fill out the personal details like address and hanko along with the vehicle in question of being transferred.
• Letter of Attorney form, otherwise known as the i-nin-jou (委任状). This is a form stamped by the seller to give permission for a title transfer.
• Personal seal certificate, otherwise known as the inkan-shomeisho (印鑑証明書) from your town/city hall. This is required from both the seller and buyer and issued within the last three months prior to the transfer.

Once you have the applicable documents above, for regular cars (white plate), head over to your local Land Transport Office (陸運事務所) or for kei cars (yellow plate), head over to your local Light Vehicle Inspection Agency (軽自動車協会). Make sure to bring the necessary and relevant documents mentioned above.

At the transport office

Once at the relevant transport office, there are two other forms to fill out:

• Revenue stamps, otherwise known as shunyuu-inshi (収入印紙). Similar to a postal stamp, you’ll need to purchase the relevant stamps for the registration process. Ask at the counter which stamps you’ll need.
• Payment slip, otherwise known as tesuryo-noufushou (手数料納付書). This is where you fill in the relevant information about the new owner (you) and details about the registration of the car, as well as affixing relevant stamps. Once again ask for assistance if you don’t know what to fill out/where to put the stamp.
• OCR application form. You can download this online or get this at the transport office. Fill out your own details along with details from the shakenshou about the car. As for the seller, you will only need to fill out their name and address (no need for inkan). As for the reason of transfer, state ‘売買’ (trading).
• (Optional) License Plate change form, otherwise known as sharyou-bangouhyou(車両番号標). If you’d like to change the combination of the number plate, complete this form. A fee applies to the change process.

Once the whole process is complete, you will be given a new shakenshou (make sure it is under your name) and a new number plate. There is a guide by Okinawa AJET that really goes in detail about how what forms to fill and how to fill them out.

Shaken 車検

In Japan, the charges for car registration, warrant of fitness/vehicle safety, compulsory insurance and tax are all included in one lump charge called shaken (pronounced “shah-ken”). It’s convenient, but very expensive.

• Shaken is charged biannually for cars under 10 years old, and annually after that.
• Shaken charges consist of:
  • registration costs,
  • charge for checking road worthiness,
  • charge for compulsory 3rd party insurance,
  • charge for road tax.
• If any repairs are needed to bring the car up to standards, an additional quote will be given. Repairs are usually ridiculously expensive, as second hand car parts are scarce. Repairs are almost always made with new parts. And beware – garages will often want to change car parts because they are old, and not because the parts are worn out!
• Compulsory insurance only gives limited cover for accidents involving death and injury to people, or to oneself.
  • Shaken costs vary based on:
    • the age of the car,
    • the type of car (kei cars are typically ¥70,000 and white plate cars are typically ¥100,000),
    • the car’s history (i.e. has it been in any accidents?), and
    • repair charges if the car needs to be serviced to meet the standards.
  • Shaken is completed by garages/car repair shops. Take your car to a garage to get it done, but ask around about where the cheapest garage is since prices can vary significantly.
  • There is also a car tax that needs to be paid once a year. It’s not too expensive, and is paid at your nearest traffic/automotive authority.

How much should I pay?

¥0-~¥300,000

• This price is usually for cars older than 10 years. Most cars in Japan around this age are disposed of. This is because the maintenance cost of the car increases rapidly after 10 years.
• The shaken charge (which can cost anywhere from ¥70,000 – ¥150,000) is charged annually once a car is over 10 years old.
• As such, it’s not very difficult to find someone getting rid of a car for next to nothing, even if the car is in good condition.

~¥300,000-~¥700,000

• This price is usually for cars between 5 to 10 years. Though it may have seen a lot of wear and tear, this is typically a good price range to go with when purchasing a reliable kei car.
• For a kei car about eight years old, with no accidents and in good condition, shaken will be in the region of ¥60,000 to ¥80,000.
• Bearing in mind that it costs to have a car destroyed or taken by wreckers, usually in the upwards of ¥30,000, people are usually very eager to get rid of older cars. In some cases, people may even pay someone to accept their car in an effort to avoid the wrecking charge.
• Just remember that it’ll cost you to get rid of it, too.

~¥700,000+

• This price is usually for cars under 5 years old. The more expensive it is, the more recent the model and lower the mileage.
• When buying a car, check when the shaken is due next. This might explain why the price differs when comparing a same model car as the more recent the shaken was done, the more expensive it is.
• If the car does not have shaken, make sure to get one done by a local mechanic/dealership before getting it registered. Obviously it will add towards the cost.