Now that you have solidified your decision on buying a personal car, the sheer variety of cars and prices ranges out there may seem overwhelming. First thing to acknowledge: you will probably need to front the whole amount of the purchase price (and any associated fees) up front or in some cases, upon pickup, unless you can negotiate with a private party seller.

Below is a bit of my personal advice and recommendations. For those that would like a more applicable answer to your specific situation, simply ask around. You can get most questions answered directly if you talk to your supervisor, your co-workers, or your contracting company. With internet access, you can reach the large, easy-to-access network of ex-pats and foreigners in all regions of the country, online via local Facebook pages or forums like Gaijin-Pot. Read on for some hopefully useful general info on the car buying process!

Contents

Where can I find a car?
Should I buy a kei or regular car?
What am I looking for when buying a car?
What’s the difference between cars and makes?
How can I identify the condition of the car?
Who can help me buy a car that I want?
What is needed when buying a car?
How can I get insurance?
Can I buy a car on credit?
What about leasing or rental options?

Sometimes you can find smaller used car lots all around with some decent prices. But beware the condition.

1. Where can I find a car?
There are many places to find a car. If you want to avoid the legwork of finding a car online yourself, then the best way would be through your supervisor, your co-workers, or your contracting company. They may be able to find you a hand-me-down car at a lower price and with less hassle than it would be out of your own accord. I’ve known a few instances where this case was the best, easiest, and smoothest option.

The other option would be to inquire with other foreign residents of Japan. ALTs that turn over every year can possibly be the cheapest place to find a used car, as they are in a hurry to dump their possessions, though some may come in questionable condition (see #5). Other foreign residents can also be helpful because they can point you to legacy knowledge about where they have purchased cars. Some purchase cars through the help of local Japanese who can do some legwork to find you something suitable.

The most difficult option and only if you know what you’re looking for or have specific needs (see #4), is finding a car yourself or with the help of a local to translate. You can look for used lots that often line the roads just outside most major cities or inquire at local car dealerships. The last and hardest option is to find a car in your price range online at Goo-Net or Car Sensor or even Yahoo! Auctions. This will require some Japanese ability or careful use of Google Translate.

A kei car used dealer lot in Aichi Prefecture. — A *kei* car used dealer lot in Aichi Prefecture.

2. Should I buy a yellow plate kei car or regular car? What are the differences?
A kei car (けいじどうしゃ / 軽自動車) is usually denoted by a yellow license plate with dark green or black numbers (or more rarely, black license plates with yellow numbering, though they are commercial use). They are a class of super / sub-compact cars designed for and by the Japanese market. They are cheaper in nearly every aspect in terms of cost, construction, and maintenance when compared to their regular counterparts. You will likely be able to find kei cars ranging from 100,000￥ to 250,000￥ without much difficulty. This will generally be the class of cars that I recommend for most people.

However, on the negative side, they are much smaller as they are regulated under a set of dimensions, seat a maximum of four, and are limited to 660cc engines with 63 horsepower or less. That means the cars can be fairly small and cramped, have limited cargo volume, and are relatively slow, especially going uphill with a full car. There is also a safety aspect that is difficult for me to touch upon, as this can be a personal risk scenario. Speed limits in Japan are lower than many other countries, so the likelihood of a life-threatening accident may be smaller, however, kei cars are very light, small, and have thin bodies and frames. This means an accident at 80km/hr in a kei car will be much more severe than a similar-year regular car.

A regular futsuu car (ふつうじどうしゃ / 普通自動車) is something you can typically see throughout the world. It ranges from rather small compact cars like Honda Civics to huge, boat-like SUVs. You can spot them easily as they usually have a white license plate with green or black numbers. They have a much higher operating costs, particularly annual taxes and maintenance. They are generally more comfortable, can go higher speeds without taxing the engine, and they are arguably safer. Unless you travel long distances or use highways frequently, you will probably be fine without one.

In case you were interested in the price breakdown (Part 1 has more detail about these costs), here is an extremely rough estimation of what you might typically pay. Keep in mind that additional maintenance costs are not listed below:
Kei vs. Regular car
Cost of car: 120,000￥ vs. 180,000￥
Gas: 17km/L vs. 14 km/L
Insurance: 8000￥ vs. 10,000￥ /month
Tax: 13,000￥ vs. 40,000￥ /year
Shaken: 50,000￥ vs. 70,000￥ /2 years

So, as you can see, the higher costs add up fairly quickly annually. It is up to you to decide if it is worth it for you.

The color may not be the best looking, but the price seems right. Does it have good shaken? — The color may not be the best looking, but the price seems right. Does it have good *shaken*?

3. What am I looking for when buying a car?
The generally first thing I recommend looking for is to find a car with as much shaken left as possible. Some dealers will start the shaken fresh when you buy the car and some are included in the asking price. Used cars from private sellers usually just have some shaken left or almost none at all. So keep this in mind, whatever car you’re looking for. The less shaken it has currently, the sooner you’ll have to pay that 70,000￥ (or greater) shaken renewal cost.

If you live in a heavily snowy climate, then consider an all-wheel drive car for driving around in winter. Most cars are two-wheel drive, which means two of the four wheels (usually the front two wheels) are responsible for actually moving the car forward; the other two are simply rolling along. AWD cars actually have all four wheels moving and trying to push the car forward. This means those cars usually have better traction in the snow and rain. However, AWD cars are usually more expensive in terms of cost of the car and gas consumption. If you are not moving to a very snowy region, a standard 2WD car will be more than adequate with winter tires.

In terms of other aspects in finding a car, the rest is personal preference. Look for cars with nicer aftermarket radios that have USB connector inputs or ETC card readers, though these are not deal-breakers. A used aftermarket car radio and mounting hardware will only be a little more than 10,000￥ or so, if you feel the need to hook up your iPhone. ETC card readers are only convenient if you plan on frequently taking toll roads.

You might think kei cars look all the same. And you'd be mostly right. — You might think *kei* cars look all the same. And you'd be mostly right.

4. What’s the difference between cars and makes?
Cars come in many shapes and sizes. The most typical kei cars are the taller, wagon style cars which essentially look like a tall box with wheels. They are the standard because they offer the most room within the kei car size limits so they are quite practical. The Suzuki Wagon R, Daihatsu Move, and Honda Life are common models of this style. The most typical regular cars are a 3 or 5-door “hatchback” design because they also offer a lot of practicality. The Nissan March, Suzuki Swift, Honda Fit, and Mazda Axela are good examples of this style.

As this is Japan, you will mostly find domestically-produced Japanese cars on the streets. If you are looking at kei cars, Daihatsu, Honda, Mitsubishi, Subaru, and Suzuki are the only manufacturers of them. (Nissan technically has kei cars, but they are just rebranded Mitsubishi and Suzuki models.) Regular cars are the same as you may see in your home country. As for reliability and maintenance, all kei cars are generally fairly reliable and use very similar parts between models. Some cars use timing belts instead of timing chains which may cost more in maintenance in the long term, though this largely depends on a variety of other factors. The biggest indicator for reliability is to identify any potential problems before you buy. (See #5)

5. How can I identify the condition of the car?
General car inspection rules apply to buying any used car. Try to find a newer year, lower mileage, less rusty, better physical and operating condition car. If you have little car knowledge yourself, seek the assistance of someone who has some experience with cars and know the major points to look for, such as signs of accidents, seal leakage, or potentially strange noises.

Especially for kei cars, I generally recommend finding the lowest possible mileage car you can find and afford. For a 3-cylinder tiny engine, they often work harder and have a more limited lifespan compared to a regular, full-sized 4+ cylinder engine. Aim for finding a kei car lower than 120,000km, if possible, though this is not a strict number. (I personally owned a 160,000km kei car that was mistreated and it still ran very well.) Regular cars are usually fine to drive 200,000km+ on the original engine and transmission, but lower is almost always better.

Rust is especially harsh on kei cars, as they often do not have the underbody rust prevention coatings that some regular cars have, but do not be turned off by minor surface rust, as this is common in any coastal country. It’s more than acceptable to have a few body dings and scrapes, but be aware of any cracked lights, bumpers or any major dents. If they are present, you may need to replace or fix them when the shaken inspection time comes.

While I don’t mind normal interior wear, be aware that Japan has a high smoker base, so some used cars will have remnant cigarette smells especially notable on hot days, even after cleaning. If you can’t tell immediately upon checking out the interior, look for signs of cigarette burns on the headliner and driver seat or used ashtrays. If you’re a smoker yourself... well, don’t mind this bit of advice.

One last minor thing to note, but this usually doesn’t pertain to 99% of the cars on the road: As much as I personally love car modifying as a hobby, generally avoid any cars that have major modifications other than the radio.

6. Who can help me buy a car that I want?
Assuming you are searching for a car outside the more direct network of people that you know or work with, you will probably need help actually getting the car. In this case, you will definitely need to seek the assistance of a local Japanese individual. If you haven't seen it yet, Japan is unfortunately not yet a very bilingual friendly country when it comes to red tape and official paperwork.

7. What is needed when buying a car?
You will need a juminhyo (住民票) within the last three months from your local city hall (市役所), proving that you live in Japan. For kei cars in most areas of the country, this will likely be all the paperwork that you need.

(These additional steps are for reference only. Your prefecture, area, and situation may vary.)
If you are planning on purchasing a white plate regular car or live in a heavily populated city, you’re going to need to fork over more money and jump through a few more hoops to prove that you actually have the space for a car. With the juminhyo and paperwork from the car dealer in hand, seek your parking property manager for a literal stamp on the paperwork, costing you a fee. Take this paperwork to your local automobile association (自家用自動車協会) to have the parking verified that it will fit the dimensions of the car. Pay another fee. Pick up all your papers at the police office the association will direct you to around one week later. Submit all these forms you probably can’t read or understand and deliver them to the car dealer, who will need to process the paperwork before you can take home your car. With private party sales, the parking will still need to be verified before the name title change can be processed.

Basically, if you’re buying a regular car, be ready to do work.

8. How can I get insurance?
As with the previous recommendations, always start by first inquiring with your supervisor, co-workers, or private company. There may be an insurance association or agent they use which will make things a lot easier and possibly cheaper. Other local foreigners may have existing connections, so ask around.

If you want to seek out your own services, there are a growing number of bilingual insurance companies that serve the ex-pat and foreigner community. I know a few who have done so through online companies and are satisfied with their service, though I pay slightly more to have an agent who I directly work with to have the convenience of someone I can reach.

9. Can I buy a car on credit?
The shortest answer to this is a resounding “no.” Unfortunately, as a foreigner, we are much more heavily scrutinized and we can be viewed in this country as being “temporary.” This means they are unlikely to lend us any significant amounts of money. Obtaining a credit card can also prove difficult for these same reasons.

You will, in nearly all cases, need to have the money in-hand before you can drive off your car. There are some exceptions. The one I am most familiar with is when you buy a car from a dealership, many will allow you to put an initial down payment to start the paperwork, which can take 1-2 weeks. You can often just pay the remainder upon pickup.

Of course, none of that applies to private party sales and transfers.

A rental car that is also available for a long-term lease, though not cheaply.

10. What about leasing or rental options?
If your private organization offers rental options, it might be a good to consider it as the pricing to my knowledge is very reasonable. However, generally speaking, it is always better to buy than to rent or lease a car as the long term cost will often exceed the purchase price over a year. If you plan on staying for a few years, definitely consider buying. The quote I have through a local rental company is around $250 USD per month. Sure, you’ll probably get something nice and much newer, but if that is representative of prices with other companies, you can easily buy a great condition kei car for much less over the year. Especially considering that you can resell a car to recoup some of your purchase price (particularly if there is shaken left).

The two exceptions to this recommendation are if you are going to be short on cash for the first few months or are planning on leaving after the first contract year. In these cases, it might be smarter to just rent and not deal with the hassle of purchasing and reselling the car later.

Hopefully, this little guide will lead you to actual car ownership. In the next [ Newbie Guide ] post next week, I will discuss basic maintenance, driving in Japan, and what to do after an accident. (Yes, I’ve had that experience, too...)

Feel free to leave a comment below or send me a message on Facebook or Instagram if you have any specific questions!

Update: The next in my Newbie Guide series is Driving in Winter, now posted up!