How to Buy a Car in Japan as a Foreigner: The Complete 2026 Guide (With Loans)

Japan has one of the finest public transportation networks in the world — and for the first few months of life here, most foreigners get by just fine without a car. Then reality sets in. You move somewhere slightly outside the train network. You get tired of carrying groceries on the train. You want to do a road trip. Your company is in an industrial park that no bus reaches. Suddenly, a car is not a luxury — it is a necessity.

The good news is that foreigners can legally buy and own a car in Japan without any restrictions. The process involves more paperwork than you might expect, a few genuinely Japan-specific hurdles you will not find in other countries, and a financing landscape that rewards long-term residents but has real options for non-permanent residents too.

This guide covers every step from the first decision to the moment you drive off the lot — and everything it costs you from that point onward.

Before You Buy: Three Decisions That Shape Everything

Decision 1: Do You Actually Need a Car in Japan?

This sounds obvious, but Japan is unusual in that the answer genuinely varies by location more than almost anywhere else.

In central Tokyo, Osaka, Kyoto, and Nagoya, a car is an active liability for most people — parking costs alone in Tokyo's 23 wards routinely exceed ¥30,000–¥60,000 per month, expressway tolls are steep, and the train network takes you everywhere faster anyway. Many long-term Tokyo residents never own one.

Outside the urban cores — in suburban Japan, regional cities, smaller towns, and anywhere rural — a car is often essential for basic daily functioning. Supermarkets, clinics, schools, and workplaces may all be unreachable without one. In these areas, car ownership is nearly universal and costs are significantly lower.

Assess your location honestly before starting this process. If you are in a major urban center, a car-sharing service (カーシェアリング) like Times Car, Careco, or ORIX may fully satisfy your occasional needs without the fixed costs of ownership.

Decision 2: Buy, Lease, or Long-Term Rental?

You have three paths to getting a car in Japan as a foreigner, and the right one depends heavily on how long you plan to stay and how much flexibility you need.

Buying outright (or with a loan): Ownership. You pay the full price either in cash or through a car loan, and the vehicle is yours. Best for those planning to stay in Japan for three or more years. Lower monthly cost than leasing once paid off, and no restrictions on mileage or customization. The trade-off is higher upfront cost, responsibility for all maintenance and shaken costs, and a sometimes-complicated exit process when you eventually leave Japan or sell.

Leasing (カーリース): A growing option for foreigners, particularly through providers like KINTO (Toyota's subscription service), Orix, and Nihon Michelin. Monthly payments typically range from ¥30,000 to ¥80,000 depending on the vehicle. Many plans bundle shaken, road tax, and maintenance, making costs predictable. Downsides include mileage caps (typically 1,000–1,500 km per month), no ownership at the end of the term, and the fact that you will need a Japanese credit history and sometimes a guarantor to qualify — nearly as demanding as a car loan.

Long-term rental: The most foreigner-accessible option. Providers like ASAHI MOTORS Group and Nippon Rent-A-Car offer monthly and multi-year rental plans that require minimal Japanese credit history, include maintenance in the cost, and are available to foreigners with a valid residence card and Japanese driver's license. Costs are higher than ownership over the long term, but the simplicity and low commitment are valuable for those uncertain about their Japan timeline.

This guide focuses primarily on buying — outright or via loan — as this is the most common route for foreigners with established Japan lives.

Decision 3: Kei Car or Standard Car?

This is Japan-specific and it matters enormously for your costs.

Kei cars (軽自動車, kei jidōsha) are a uniquely Japanese vehicle category — small, lightweight passenger cars with engines no larger than 660cc, maximum dimensions of 3.4m length × 1.48m width × 2.0m height, and maximum power of 47kW (64 horsepower). They are identified by yellow license plates. Models include the Honda N-Box, Daihatsu Tanto, Suzuki Spacia, and dozens of others.

Standard cars (普通自動車) are everything larger — sedans, SUVs, minivans, and sports cars — identified by white license plates. These include Toyota Aqua, Honda Fit, Mazda CX-5, and all imported vehicles.

The cost difference between owning a kei and a standard car is dramatic:

For most foreigners living in Japan — particularly outside major cities where driving is everyday and distances modest — a kei car is the rational financial choice. They handle Japanese residential roads (notoriously narrow) far better than larger vehicles, parking is dramatically simpler, and the annual running costs are genuinely low. Their main limitation is highway and mountain driving, where the small engine is noticeably strained.

If you regularly drive on expressways, carry large loads, or come from a country with large car culture and find the kei proportions unsatisfying, a standard car makes sense — just factor the additional costs in honestly.

The Parking Certificate: Do This First

Before you look at a single car listing, secure your parking space and obtain your Parking Space Certificate (車庫証明書, shako shōmeisho).

This document — issued by your local police station — certifies that you have a designated, legal parking space within 2 kilometers of your registered home address. In Japan, it is illegal to purchase and register a car without one (in most urban and suburban areas — some very rural municipalities are exempt, but assume you need one unless told otherwise).

The shako shōmeisho requirement exists because Japan takes on-street parking enforcement very seriously, and having a registered parking space is a prerequisite for vehicle ownership rather than an optional luxury.

How to get a Parking Space Certificate:

Step 1: Secure a parking space. If your apartment building has an included or available parking space, start with your landlord or management company. If not, search for a nearby coin parking lot (コインパーキング) that offers monthly contracts, or a dedicated parking lot (月極駐車場, tsukigime chūshajō). Monthly parking in urban areas ranges from ¥5,000–¥10,000 in rural areas up to ¥30,000–¥60,000+ in central Tokyo. Get a signed parking agreement document from the owner or operator.

Step 2: Submit the application to your police station. Take the following to the traffic division (交通課) of your nearest police station:

• Completed Parking Space Application Form (自動車保管場所証明申請書) — available at the police station or downloadable from the local police website

• Parking space agreement / lease documentation from the lot owner

• Location map showing your residence and the parking space with distance marked

• Your registered address documentation

Step 3: Wait 3–7 business days. An officer will visit and physically verify that the space exists, is large enough for your vehicle, and is within 2km of your address.

Step 4: Collect your certificate. Pay the issuance fee (approximately ¥2,100–¥2,800 depending on prefecture) and collect your certificate. It is valid for one month — so time your car purchase to happen within that window.

Critical note: The certificate is issued for a specific vehicle size. If you decide to buy a different car after obtaining the certificate, you may need a new one. Get the certificate after you have narrowed your choice to a specific car size category.

Required Documents for Buying a Car

Once you have your parking certificate in hand, gather the following documents before going to a dealership or meeting a private seller. Having everything ready avoids delays and shows dealers you are a serious, prepared buyer.

For all buyers:

• Residence card (在留カード, zairyū kādo) — your primary ID as a foreign resident

• Residence certificate (住民票, jūminhyō) — issued by your ward or city office within the last three months. Bring several copies; dealers will keep one.

• Parking Space Certificate (車庫証明書) — valid and specific to the car type you are buying

• Personal seal (印鑑, inkan) or registered seal certificate (印鑑証明書, inkan shōmeisho) — Japan's traditional signature substitute. A standard inkan (registered at your ward office) is required for car purchase contracts. Some dealers accept a standard non-registered inkan for used car purchases; new car dealers and any loan application will require a registered seal with its certificate. Register your inkan at your ward office before starting the process if you have not already done so.

• Valid Japanese driver's license — you must hold a Japanese license or a recognized foreign license to be the registered owner and driver of a vehicle in Japan. An IDP alone is not sufficient for ownership registration.

For loan applications (additional documents):

• Two to three years of withholding tax statements (源泉徴収票, gensen chōshūhyō) from your employer

• Certificate of taxable income (課税証明書) from your ward office

• Employment certificate or employment contract

• Bank statements (3–6 months)

• Guarantor documents — if your lender requires one, they must provide their own inkan certificate and identification

What you do not need: Contrary to some older guides, you do not need a Japanese citizen co-signer simply to buy a car — a guarantor is only required by certain lenders for financing. Purchasing outright in cash requires no guarantor.

Where to Buy a Car in Japan

New Car Dealerships (新車ディーラー)

Major manufacturer dealerships — Toyota, Honda, Nissan, Suzuki, Daihatsu, Subaru, Mazda, Mitsubishi — sell new cars at their authorized sales outlets. Prices are not heavily negotiated in Japan (unlike in many Western countries), though dealers may offer free accessories, extended warranties, or favourable financing terms rather than discounting the sticker price directly.

Advantages of buying new from a dealership: full manufacturer's warranty (typically 3 years or 60,000 km), the latest safety technology, the longest period before the first shaken is due (3 years from registration for new vehicles), and often bundled maintenance packages. Disadvantage: substantially higher purchase price and rapid initial depreciation.

If you buy new, consumption tax (10%) applies to the vehicle price.

Used Car Dealerships (中古車ディーラー)

Japan's used car market is exceptionally well-organized and genuinely high quality by global standards. The shaken inspection system means that any vehicle currently on the road has passed a rigorous safety and emissions check within the last two years — so "used" in Japan does not carry the same risk premium it does in many other countries.

Major used car chains include Gulliver, Carmax Japan, BiC Camera Auto, IDOM (previously Gulliver), Carsensor-certified dealers, and hundreds of independent regional dealers. Some dealerships specialize in foreign-language service for international buyers — notably ASAHI MOTORS Group, which operates across multiple cities with English, Chinese, Korean, Bengali, Hindi, and Urdu support.

Advantages: significantly lower prices, slower depreciation from the point of your purchase, and more room to negotiate than at new car dealers. Used car dealers typically handle all registration paperwork on your behalf for a fee of approximately ¥15,000–¥30,000.

Note: When buying used, confirm exactly when the current shaken expires. A car with 18 months of shaken remaining is a better deal than the same car with 1 month remaining — the shaken renewal cost will come due immediately after purchase.

Online Marketplaces

Japan's primary car listing platforms are:

• Goo-net (グーネット): The largest used car marketplace in Japan. Comprehensive inventory, searchable by model, year, price, mileage, shaken validity, and color. Japanese-language interface primarily, with some English filtering available.

• Car Sensor (カーセンサー): Major competitor to Goo-net with similar inventory depth.

• Autotrader Japan: More accessible for English-speaking buyers.

• Yahoo! Auctions Japan: Private seller listings — lower prices but fewer consumer protections.

For English-friendly options specifically curated for foreigners:

• Genki Cars (genkicars.jp): Osaka-based, English interface, foreigner-friendly financing

• OTORON: Used cars with in-house financing options for foreign buyers

• Japan Car Direct: English-language search and buying assistance

When buying from an online listing, always inspect the car in person before completing any payment. Request the vehicle inspection certificate (shaken-sho, 車検証) and review the mileage and accident history report (carfax equivalent in Japan is called a vehicle history certificate, 車両状態証明書).

Car Auctions (オートオークション)

Japan's auto auction system is one of the largest in the world, moving enormous quantities of vehicles through trade-only auction lanes at facilities run by USS, TAA, JU, and others. As a private buyer, you cannot attend these auctions directly.

However, a number of brokers and dealers — including some foreigner-friendly services — will bid on your behalf for a fee (typically ¥30,000–¥80,000). This can get you significantly below market prices, particularly for vehicles that have not been polished up for retail display. The trade-off is that you are buying without a test drive, with limited ability to inspect beforehand, and with no dealer warranty.

Private Sellers

Platforms like Yahoo! Auctions Japan and Facebook Marketplace Japan have private seller listings at the lowest prices. Private sales carry the most risk — no warranty, no dealer to handle paperwork on your behalf, and no recourse if problems emerge after the sale. Only pursue private sales if you either have strong Japanese language ability to navigate the transaction and paperwork, or a trusted bilingual person to assist you. The price difference is rarely worth the complexity for first-time foreign buyers in Japan.

New vs. Used: The Real Cost Difference

For foreigners on a 3–5 year Japan assignment or those uncertain about their long-term stay, a used car aged 3–5 years hits the sweet spot: depreciation has already occurred, shaken history is established, and the vehicle still has modern safety features. Avoid buying cars older than 13 years unless you are very price-sensitive — a 10% annual tax surcharge kicks in at 13 years, making older vehicles progressively more expensive to own.

Car Loans for Foreigners: Who Will Lend and What It Costs

The car loan market for foreigners in Japan sits in a similar position to the mortgage market — permanent residents have essentially full access to the best rates and terms, while non-PR foreign residents have real options but with stricter requirements and higher rates.

The core challenge: Japanese lenders — like Japanese mortgage lenders — worry about repayment risk if a foreign borrower returns to their home country. This is not discrimination in a legal sense; it is a standard risk assessment of customers with no binding incentive to remain in Japan. The result is that PR holders and long-term residents with established Japan credit histories get better terms than recent arrivals.

Lender Options for Non-PR Foreign Residents

Suruga Bank — Auto Loan for Foreigners

Suruga Bank is the most well-known option for foreigners seeking a car loan without permanent residency. Their foreigner-specific auto loan product can be applied for entirely online in English, requires no visit to a branch, and accepts any residence status that permits employment in Japan.

Key Suruga Bank auto loan conditions (2026):

• Permanent residency not required

• Any employment-permitting visa accepted

• Minimum stable income (amount assessed individually)

• Loan amounts up to ¥3 million

• Interest rates: 6%, 9%, or 12% per annum depending on your profile — significantly higher than bank loans available to PR holders, but one of the most accessible routes for non-PR applicants

• No guarantor required for qualified applicants

• Online application with English support

• Also usable for motorcycle purchases, shaken costs, and driver's license acquisition fees

Dealer Finance through JACCS, Toyota Finance, Honda Finance, etc.

When you buy from a franchised dealer, they typically offer in-house financing through their affiliated finance company. For Toyota dealers, this is Toyota Finance; for Honda, Honda Finance; for others, it is often JACCS or Orient Corporation. These products are designed for convenience rather than low rates — expect interest rates of 2%–8% depending on your credit profile, visa status, and loan amount.

Dealer finance is often easier to access than bank finance for foreigners because dealers are motivated to close the sale, and their finance arms have more flexibility in accepting non-standard profiles. The trade-off is the rate premium.

GMS (Global Marketing Specialists) Auto Loan

GMS specializes in auto financing for foreign residents and explicitly does not require permanent residency or a guarantor for qualifying applicants. English support is available. Interest rates are comparable to other non-PR foreigner products.

OTORON — In-House Financing on Used Cars

OTORON is a used car dealership that offers in-house financing at 0% interest on their own inventory. A guarantor is required. If you have a trusted Japanese national or permanent resident willing to act as guarantor, OTORON's 0% rate is an excellent deal on qualifying vehicles.

Genki Cars — Foreigner-Friendly Dealership Finance

Genki Cars (Osaka-based) offers car loans specifically designed for foreigners, with a loan calculator on their website that estimates terms based on your visa status. English-language support throughout.

Interest Rate Comparison by Borrower Profile

How to Improve Your Loan Approval Odds

Build a Japan credit history first. Japan uses three credit bureaus — CIC, JICC, and PCIC. Having no history is different from having a bad history, but it still limits your options. Using a Japanese credit card responsibly for 6–12 months before applying for a car loan creates the track record lenders want to see.

Show visa stability. Apply when your visa has significant remaining validity — not when it is nearing expiry. Lenders want to see that you will still be in Japan for the foreseeable loan repayment period.

Choose a lower-priced car. A loan application for ¥800,000 is far more likely to be approved than one for ¥3,000,000 for a non-PR applicant with limited Japan history. Starting with a modest used kei car — often ¥300,000–¥800,000 — and building your Japan credit profile before upgrading is a sound strategy.

Full-time employment matters. Lenders strongly prefer seishain (正社員, permanent full-time employee) status. Contract employees, part-time workers, and self-employed applicants face additional scrutiny and typically need to demonstrate longer income history.

Consider a guarantor. Having a Japanese national or permanent resident as a guarantor dramatically improves approval odds at any lender, and can access better rates at some institutions. The guarantor must be aged 18–65 with stable employment and good credit.

Step-by-Step: The Complete Car Buying Process

Step 1: Get Your Driving License Sorted

You must hold a valid Japanese driver's license to register a car in your name in Japan. An IDP is valid for driving but not for vehicle registration ownership. If you are still in the process of converting your foreign license or have not started, do that first. (See our complete guide to getting a Japanese driver's license for the full process.)

Step 2: Secure Your Parking Space and Get the Certificate

As covered above — this must come before any purchase. Allow 1–2 weeks for the process.

Step 3: Set Your Budget

Use this realistic cost framework:

Total upfront cost = Purchase price + on-road costs

On-road costs for a used car purchase at a dealer typically include:

• Dealer handling/registration fee: ¥15,000–¥30,000

• Vehicle inspection certificate transfer: ¥500

• Parking certificate application: ¥2,100–¥2,800

• Automobile acquisition tax: 3% of vehicle value (kei cars: 2%)

• Weight tax (if shaken is being done at purchase): ¥6,600–¥50,400 depending on weight and age

• Recycling fee (廃車リサイクル料): ¥7,000–¥18,000 (one-time fee, applies to new registrations or first-time registration of a specific vehicle — confirms the vehicle is enrolled in Japan's end-of-life recycling program)

• Mandatory liability insurance (jibaiseki hoken): included in shaken renewal or paid upfront

• Optional comprehensive insurance: separate, first year's premium payable upfront

Total on-road costs for a used car typically add ¥100,000–¥250,000 to the purchase price.

Step 4: Search and Inspect

Browse listings on Goo-net, Car Sensor, or the English-language platforms listed above. When you find a serious candidate:

• Confirm the shaken expiry date (car inspection certificate, 車検証)

• Request the vehicle history report — ask for 修復歴 (shūfutsureki) disclosure, which indicates whether the vehicle has been repaired after structural accident damage. A "修復歴あり" (has repair history) car should be priced significantly lower than a clean-history equivalent, and mortgage or loan financing against it may be more difficult.

• Test drive the car — any reputable dealer will allow this

• Check the dashboard for warning lights, unusual sounds under acceleration, and smooth gear transitions

• Look underneath for rust (particularly on older vehicles in areas with heavy winter road salting)

Step 5: Negotiate and Agree on Terms

At Japanese dealerships, price negotiation is more restrained than in many Western countries — dealers rarely drop the headline price dramatically. However, you can often negotiate on ancillary items: free floor mats or accessories, a filled petrol tank on delivery, extended dealer warranty, reduced registration fee, or a small discount on optional insurance through the dealer's partner. Be polite, deliberate, and patient. Aggressive bargaining is culturally out of place and counterproductive.

If financing, discuss loan terms at this point. The dealer will submit your loan application on your behalf if using dealer finance, or you will bring your pre-arranged bank loan approval documentation.

Step 6: Sign the Contract and Pay

The purchase contract (売買契約書) will be in Japanese. If your Japanese is not strong enough to review it yourself, bring a bilingual friend or use a trusted translation service. Key items to confirm: final purchase price, items included (shaken, accessories, insurance), delivery date, warranty terms, and what happens if the vehicle has a fault discovered after delivery.

Payment in Japan is typically by bank transfer — not cash in hand. Even if you are paying the full amount in cash, dealers typically require you to deposit the money in your Japanese bank account and transfer it to their designated account. Do not bring a bag of physical yen to a dealership expecting to complete the transaction.

Step 7: Complete Registration and Insurance

The dealer will typically handle vehicle registration on your behalf (this is part of the registration fee you pay). They will submit the transfer of ownership documentation, the shaken certificate, your inkan and juminhyō to the relevant Land Transport Office (陸運局, rikuun kyoku).

Before you can drive the car off the lot, you must have active insurance. This comes in two layers:

Mandatory liability insurance (自賠責保険, jibaiseki hoken): Government-mandated minimum coverage. Covers bodily injury to third parties only — not property damage, not your own injuries, not your vehicle. Typically bundled into the shaken cost and valid for 2 years. Without this, the car cannot be registered and cannot legally be driven.

Optional comprehensive insurance (任意保険, nin'i hoken): Covers property damage to other vehicles and objects, your own injuries, theft, and your own vehicle damage. Not legally mandatory, but strongly recommended. In Japan, accident repair costs and personal injury liability claims can be extremely large — driving without comprehensive cover is a significant financial risk.

Optional insurance premiums vary by age, driving history, vehicle type, and coverage level. First-year premiums for a new foreign driver in Japan with no Japan claims history start from approximately ¥60,000–¥120,000 per year for a kei car and ¥80,000–¥180,000 for a standard car. Premiums drop significantly in subsequent years as your Japan no-claims record builds. Major providers include Sompo Japan, Tokio Marine, Mitsui Sumitomo, AXA Japan, and Sony Sonpo. Several providers now offer English-language support.

Step 8: Receive Your Car

On delivery day, the dealer hands over the keys, the vehicle inspection certificate (車検証), the number plates, and all documentation. Confirm that the shaken expiry date, your name, and the registered address on the certificate match what you expect. File these documents somewhere safe — you will need the shaken certificate for every subsequent inspection, sale, or deregistration.

Understanding Shaken (車検): Japan's Mandatory Vehicle Inspection

Shaken is the element of Japanese car ownership that surprises foreigners most. It is a mandatory bi-annual vehicle inspection conducted by government-approved facilities, covering safety standards, emissions compliance, and vehicle condition.

Schedule:

• New vehicles: first shaken due 3 years after initial registration

• All subsequent inspections: every 2 years

• A 1-month grace period exists before and after the due date for scheduling the appointment

What shaken covers:

• Safety inspection of brakes, lights, tyres, suspension, wipers, horn, seatbelts, steering, and all safety systems

• Emissions compliance test

• Renewal of mandatory liability insurance (jibaiseki hoken) for the next 2-year period

• Weight tax payment (paid at each shaken)

• Inspection fee and basic adjustments

What shaken costs: Shaken costs vary significantly based on vehicle age, weight, type, and what repairs are needed to pass. Budget broadly:

If your vehicle fails the inspection, you must pay for the required repairs before it passes. Budget for this possibility when buying an older vehicle.

Where to get shaken done: At any authorized inspection facility — these include manufacturer dealerships (most expensive), independent car service shops (車検専門店, often more affordable), some gas stations with inspection certification, and dedicated chains like Autobacs or Yellow Hat's shaken service offerings.

Notification is NOT automatically sent to you when shaken is due. You must track the date yourself from your vehicle inspection certificate. Driving with expired shaken is a criminal offence in Japan — it carries fines of up to ¥300,000 and can result in license suspension. Set a calendar reminder 2 months before your shaken expiry date.

Full Annual Cost of Owning a Car in Japan

Beyond the purchase price, here is what you will actually pay each year to keep a car on the road in Japan.

Annual Automobile Tax (自動車税, jidōsha zei)

Paid by May 31 each year. Based on engine displacement for standard cars; a flat rate for kei cars.

A 10% surcharge applies to all vehicles more than 13 years old. Eco-friendly vehicles (hybrid, electric) receive reductions or exemptions.

Tax bills are mailed to the address on your vehicle inspection certificate in April/May. They are in Japanese. Pay at a bank, post office, convenience store, or via PayPay/LINE Pay for some prefectures.

Biennial Costs (Every 2 Years)

• Shaken: ¥60,000–¥200,000 depending on vehicle (see above)

• Weight tax (included in shaken): ¥6,600–¥50,400 depending on weight and age

Annual Fixed Costs

• Mandatory liability insurance (included in shaken — effectively paid every 2 years)

• Optional comprehensive insurance: ¥60,000–¥180,000 per year

• Parking: ¥5,000–¥60,000 per month depending on location

• Regular maintenance (oil changes, tyre rotation, fluid checks): ¥30,000–¥60,000 per year estimated

Fuel

Petrol prices in Japan in early 2026 average approximately ¥165–¥175 per litre for regular unleaded, with some regional variation. Kei cars typically achieve 20–30km/L; standard cars 10–20km/L depending on type.

Total Annual Ownership Cost Estimate

Selling Your Car When You Leave Japan

When your time in Japan comes to an end — or when you simply want to upgrade — selling or disposing of your car requires a specific process.

Selling to a dealer: The fastest and easiest route. Chains like Gulliver, IDOM, and Carsensor-certified dealers offer instant purchase assessments where they will appraise and buy your car on the spot. Expect to receive below market value, but the convenience — and their handling of deregistration paperwork — is often worth the discount. Multiple competing offers in an afternoon is a reasonable strategy to maximize your price.

Selling privately: Higher potential price via Goo-net or Yahoo Auctions listings, but you are responsible for all the transfer paperwork, which is in Japanese. The ownership transfer process requires both buyer and seller to submit documentation to the Land Transport Office.

Deregistering (廃車, haisha): If your car has no resale value, you can surrender it to a licensed auto dismantler (解体業者, kaitai gyōsha). The recycling fee you paid at the time of purchase is then redeemed. The dismantler handles the final deregistration with the Land Transport Office.

Documents needed when selling:

• Vehicle inspection certificate (車検証)

• Seal registration certificate (印鑑証明書)

• Vehicle transfer certificate (譲渡証明書)

• Your residence card and registered inkan

Cancel your optional comprehensive insurance on the effective date of sale to stop paying premiums. The mandatory liability insurance (jibaiseki hoken) may be partially refunded if significant time remains — ask the dealer or contact the insurance provider directly.

Car-Sharing: The Alternative Worth Knowing

For those in urban Japan who do not need a car daily, Japan's car-sharing services are mature, widespread, and excellent value.

Times Car (タイムズカー): The largest car-sharing network in Japan with tens of thousands of bays nationwide. Rates from ¥220 per 15 minutes for small cars. Registration online with a residence card and Japanese driver's license. 24-hour access.

Careco: Competitive pricing with a large fleet in urban areas. Some plans offer monthly fee waiver if you drive enough hours.

ORIX CarShare: Reliable network with a range of vehicle types including larger cars and vans.

KINTO (Toyota): Toyota's subscription service for new Toyota/Lexus vehicles. Higher monthly cost but all-inclusive: insurance, tax, maintenance, and shaken covered. Minimum 3-year term.

Car-sharing eliminates all fixed ownership costs and is substantially cheaper than car ownership for anyone driving less than 50–70 hours per month. For Tokyo and other major urban residents, it is frequently the financially optimal choice.

Frequently Asked Questions

Can I buy a car in Japan without permanent residency? Yes. There is no legal residency requirement for buying a car. You need a Japanese driver's license, a residence card, a juminhyō, an inkan, and a parking certificate. Permanent residency affects loan access and rates but not purchase eligibility.

Can I register a car at my friend's address? No. The registered address on your juminhyō and the parking space must be within 2km of each other. Using a different address for registration is fraudulent and can result in your registration being voided.

How long does the car registration take? When buying from a dealer, the dealer handles registration on your behalf. Typically 1–2 weeks from contract signing to receiving your plates and certificate. If you need the car urgently, discuss timeline with the dealer upfront.

Can I drive with my home country license while I wait for my Japanese license? Only if you hold a valid 1949 Geneva Convention IDP. Without it, you cannot legally drive in Japan on a foreign license unless you are a national of Belgium, France, Germany, Monaco, Switzerland, or Taiwan and carry your home license with a JAF translation.

What happens to my car if I leave Japan before my shaken expires? You can sell it before leaving, or deregister it and claim the recycling fee refund. Do not leave Japan permanently without sorting the car — ongoing automobile tax bills will continue to arrive and unpaid taxes can complicate future Japan visa applications.

Can I import my car from my home country? Technically yes, but it is rarely worthwhile. Imported vehicles face strict compliance requirements to meet Japanese safety and emissions standards, import duties, conversion costs for right-hand traffic requirements if applicable, and the challenge that Japanese service centers are less familiar with foreign models. Japan's domestic used car market is so good that importing from abroad almost never makes financial sense for a personal vehicle.

Do I need to change my car insurance when I change address? Yes. Notify your insurance provider of your new address promptly. Both optional and mandatory insurance documentation must reflect your current registered address.

Quick Reference Summary

Buying a car in Japan as a foreigner is entirely manageable once you understand what Japan-specific elements make the process different from what you are used to: the parking certificate that has to come first, the shaken system that governs ongoing costs more than almost any other factor, the inkan requirement, and the financing landscape that rewards patience and Japan residency history. Go in informed, target a good-quality used kei car if budget and driving needs allow, get your paperwork in order before visiting a dealer, and the rest of the process is more straightforward than most people expect.