Car Buying Guide for Expats in Japan: Making the Right Choice

Should You Own a Car in Japan?

Whether you’re an expat living in Japan or planning to move there, one common question that arises is whether owning a car is necessary. The answer largely depends on where you live and your specific needs. Let’s dive into the details and explore the pros and cons of car ownership in different areas of Japan.

Tokyo 23 Wards – The Land of Efficient Public Transportation

In the metropolitan Tokyo area, which includes the famous 23 wards, the public transportation system is incredibly well-developed. With a comprehensive network of trains covering the vast 619 square kilometers, commuting by train is the norm for most people. You’ll find a train station within a 10-minute walk virtually anywhere. Trains are faster than cars, making them a convenient and efficient mode of transportation. Additionally, parking fees can be quite steep in Tokyo, making owning a car less attractive for many residents. Unless you have specific needs, such as transporting young children or pursuing a car-related hobby, living without a car is not only doable but also practical. 

Like New Yorkers, Tokyoites Embrace Public Transit.

日本人女性 笑顔
日本人女性 笑顔

Similar to New Yorkers, Tokyoites have embraced the convenience of public transit. They rely on trains to get around the city efficiently and avoid the hassle of driving in congested traffic. Public transportation is a way of life in Tokyo, and owning a car is more of an exception than the rule.

Core Cities – A Mix of Convenience and Choice

In core cities like Tokyo, Yokohama, Osaka, Kyoto, Kobe, Fukuoka, Sendai, Nagoya, and Sapporo, access to public transportation is still excellent. Living in the city center often means having a train station within walking distance, making daily commutes easy. While owning a car is not a necessity here, many families opt for one to enhance mobility and enjoy the freedom of exploring the surrounding areas. In core cities, the decision to own a car largely depends on your lifestyle and preferences.

Rural Areas – The Car-Friendly Landscape

In rural areas and countryside regions, the story is quite different. Here, cars are an integral part of daily life, and nearly everyone owns a car. The availability of affordable land and lower parking fees make car ownership a practical choice. While buses might be available in most areas, having a car provides unmatched convenience and flexibility to explore remote places and run errands efficiently. If you’re living in the countryside, owning a car will likely be a valuable addition to your lifestyle.

Where to Buy a Car

Now that you’ve considered the pros and cons of owning a car in Japan, let’s talk about the buying process. There are several options available to you:

  1. Dealership: Dealerships are authorized sellers affiliated with specific car manufacturers. They offer new cars with manufacturer warranties, but the associated costs for parts and maintenance tend to be higher.
  2. Sub-dealer: Sub-dealers are not tied to any particular manufacturer and sell cars from multiple brands. While their parts and maintenance costs are relatively lower, they provide their own warranties instead of the manufacturer’s.
  3. Used Car Dealers: These dealers offer a range of options. Some dealerships provide certified used cars with reliable warranties, albeit at higher prices. Others require careful assessment of the car’s condition and the dealer’s reputation.
  4. Direct Purchase from Consumers: You can explore online marketplaces like Craigslist for direct transactions with individual sellers. However, be cautious and thoroughly verify the seller’s trustworthiness. Keep in mind that handling the paperwork for ownership transfer and certification can be a bit of a burden in this case.

Necessary Documents for Car Purchase

When buying a car in Japan, you’ll need to prepare the following documents:

  • Seal Registration Certificate and Personal Seal: These are required from the buyer.
  • Garage Certificate: Also prepared by the buyer.
  • Car Inspection Certificate: Provided by the seller.
  • Compulsory Automobile Liability Insurance Certificate: Also provided by the seller.
  • Power of Attorney: Provided by the seller.

If you’re purchasing a kei car (a small-sized vehicle with specific engine requirements), you won’t need the seal registration certificate and garage certificate, but a residential certificate will be necessary.

The Costs of Car Ownership

Owning a car in Japan comes with certain expenses that you should be aware of:

  • Taxes: Automobile tax and automobile weight tax are the two main taxes associated with car ownership. Automobile tax is imposed annually, depending on the car’s engine displacement, while automobile weight tax is paid upon purchase and subsequently at each car inspection. There are also tax reductions and incentives for eco-friendly cars.
  • Car Inspection (Shaken): Car owners are required to have their vehicles undergo a mandatory inspection, known as “shaken,” once every one or two years, depending on the car’s age.
  • Car Insurance: Compulsory automobile liability insurance is mandatory for all drivers in Japan. This insurance covers minimal compensation for personal injury or death caused by an accident. Optional insurance is also available, providing additional coverage for car damage and other aspects.

Dealing with Car Accidents

In case of a car accident in Japan:

  1. Secure the Car: Move your car to a safe location, if possible.
  2. Call Authorities: Dial 110 for the police and 119 for an ambulance.
  3. Seek Medical Attention: If anyone is injured, go to the hospital immediately.
  4. Car Accident Certification: Obtain a “交通事故証明書” (Kotsu Jiko Shomei-sho) from the police for insurance purposes.

It’s crucial to remember that car accidents involving illegal acts can lead to criminal charges. It’s essential to understand the possible consequences in such situations.


Owning a car in Japan can be a practical choice depending on your location and lifestyle. While public transportation is highly efficient in major cities, having a car offers unmatched convenience in rural areas. We hope this guide has provided valuable insights to help you make the right decision for your life in Japan. Whether you’re navigating the bustling streets of Tokyo or exploring the picturesque countryside, safe travels!

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