Buy a Used Car in Japan: Auctions, Dealers, and Shaken Costs

Determine your needs and budget. First, decide what type of car fits your lifestyle, how long you'll stay in Japan, and how much you can spend (including taxes, car insurance, and inspection costs). Long-term residents (2+ years) often buy a car, while shorter stays may be better off rent a car or leasing. Remember ongoing costs: annual automobile tax (~¥50,000 yen for a mid-size vehicle), compulsory insurance, and periodic shaken (vehicle inspection). New vehicles have the first shaken after 3 years, then every two years. Set aside roughly 6–10万円 every two years for a kei car's shaken.

Choosing Where to Buy Used Cars: Dealers, Auctions, or Private Sale

Japan offers several used car market options. Each has pros and cons:

Method	Who Sells/How	Pros	Cons
Brand Dealers<br/>(e.g. Toyota, Honda)	Car manufacturers-affiliated dealers – sell certified/trade-in vehicles	High-quality cars (often "certified" by maker), solid maintenance history, factory warranty and service packages. Usually English support at larger dealerships.	More expensive purchase price, limited to one brand's models.
Used Car Dealerships<br/>(e.g. Gulliver, AutoBacs Cars)	Independent car dealerships – sell trade-ins and auction buys	Wide selection of models/brands, often lower prices than brand dealers. Many branches and chains, sometimes multilingual staff.	Quality and service vary by shop. Guarantees and after-sales differ. You must verify vehicle condition yourself.
Dealer Auction (via Broker)	Large-scale auctions (USS, etc.) accessible only through licensed brokers (代行業者)	Can get much lower prices (no retail markup) and see unbiased inspection reports. Huge variety of cars.	No in-person inspection – you rely on agents' reports. Brokers charge fees. Paperwork is complex, so it's suitable only if you use a trusted auction broker.
Private Sale (個人売買)	Direct owner-to-owner (online classifieds, flea markets)	No dealership markup – potentially very cheap. Niche or classic cars may appear.	Risky: no warranty or after-sales support, must verify everything yourself (accidents, liens, etc.). All registration and paperwork is on you. Language/transaction risk is high.

For most foreigners living in japan, dealers or used car dealerships are easiest. These places handle paperwork, car inspection, and in many cases offer English explanations. Auctions require a professional agent to navigate and are recommended only if you use a reliable broker and understand Japanese vehicle reports. Private car sales can be cheaper but carry high risk.
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Inspecting and Choosing a Used Car in Japan

Once you've chosen where to shop, inspect the vehicle carefully. Check:

Shaken status and mileage: How many years until the next vehicle inspection? Used vehicles with almost-expired shaken should cost less or the seller might split renewal costs with you. Shaken for a kei car can run ~60–80千円 for two years (higher for larger cars).
Accident/Repair history (修復歴): Ensure the car dealerships provide the inspection sheet or "auction report" indicating whether the japanese car has major repairs. Car dealers and brokers are required to disclose this.
Vehicle condition: Examine rust, frame damage, tire wear, and engine noise. Test-drive if possible. Don't overlook parking requirements: the car must fit your registered parking space, and you'll need a parking space certificate (車庫証明) to register your car.
Price comparison: Check similar listings on sites like Goo-Net or CarSensor. Car dealers often price their cars higher than auction value, so compare. As a tip, getting an independent quote from several dealers or using a "buying service" can ensure you're not overpaying.

Checklist: Before purchasing a car, confirm that you have a valid japanese driver's license or equivalent, and that you can provide necessary documents (see below). Verify any dealership or broker's reputation online to avoid scams.
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Negotiation and Paperwork

When you've selected a car, negotiate the final price. Dealers often include options (extended warranty, accessories), so ask if they can discount these. Foreign residents should ensure they understand the contract fully – contracts and sales slips are usually only in Japanese. If needed, bring a bilingual friend or request translation. Key tips:

Car loan: Many foreigners find it hard to get a car loan. If paying cash or via cashier's check is possible, that avoids complicated financing.
Deposit: A small deposit (¥50,000–¥100,000 yen) is common to hold the car. Make sure you get a written receipt if you pay a deposit.

Documents Required: You will need these to complete the car purchase and register your car:

Personal ID: Residence card (在留カード) and a valid driver's license (domestic or international-with-Japanese license exchange).
Seal Certificate (印鑑証明): A stamp registration certificate. In Japan, car ownership transfer usually requires a registered personal seal. Foreign residents can register a hanko and obtain this certificate.
Vehicle Registration Certificate (if used car has plates): The seller should provide the current "Certificate of Inspection" (shaken-sho).
Proof of parking space certificate (車庫証明): You must show proof of parking space address (self-owned or rented). This is applied for at the local police station after purchase. Foreigners follow the same rules as japanese people and typically need the lessor's permission certificate.
Finance Documents: If taking out a loan is arranged, prepare your employer letter, salary slips, etc.

Car dealers usually handle most of the paperwork (title transfer, registration, license plates) if you pay a fee. Always get copies of all signed documents.
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Understanding Shaken (車検) Costs

"Shaken" is Japan's mandatory car inspection. Any car driven on japanese roads must pass shaken on schedule. It includes rigorous safety and emissions checks. The first shaken for a new car comes at 3 years and is valid for three years, then every two years. For used cars, you inherit the remaining term of the current shaken: buying a car with a fresh (2-year) shaken is a big plus.

Shaken costs consist of fixed government fees and maintenance:

法定費用 (mandatory fees): weight tax + jibaiseki hoken (for 2 years) + a processing stamp (~¥20,000–¥50,000 yen depending on car size). For example, a regular compact car might pay ~¥4–5万 for these.
整備費用 (maintenance): labor, parts, and "inspection fee" can vary. Typically a kei car's shaken totals ¥6–8万, while a mid-size (1.5–2.0L) is about ¥8–12万, and larger vehicles can exceed ¥13万. These ranges include both the law fees and basic repairs. (Car dealers often quote the higher end for safety, so always get a breakdown of what's covered.)

If a car's shaken is nearly up, negotiate the price down or ask the seller to cover renewal. For example, renewing shaken on a midsize SUV could cost over ¥15–20万. To avoid surprises, ask for the exact expiration date and factor the cost into your budget.
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Finalizing and After-Purchase Steps

After payment, ensure the car is properly registered in your name. If you bought from a dealership, they typically arrange this. If not, you (or a entrusted agent) must submit:

Ownership transfer forms
Parking certificate (届け出) from the police
Stamp certificate (印鑑証明)
Proof of payment of vehicle tax (if required)

Once registered, you'll get new license plates. You must also buy or update mandatory insurance. Dealers often include the remainder of existing insurance until shaken, but you should arrange your own insurance (任意保険) as soon as possible.

Keep a checklist of post-purchase tasks:

Register at city hall (notify change of owning a car).
Pay the annual automobile tax (usually by May 31 each year).
Schedule any remaining maintenance or part replacements.

Tips & Checklist

Bring a japanese friend or interpreter. Many contracts and negotiations are in Japanese. An ally can also help spot hidden issues.
Always check 車検 and 自賠責証明. Confirm the insurance papers match the new shaken date.
Use reputable dealers or brokers. Look for agents with foreigner-friendly services (some offer English support).
Compare prices in japan. Visit multiple shops and get quotes. Online sites (Goo, CarSensor) let you filter by model, year, price, and even shaken expiration.
Verify mileage. Japan strictly tracks odometer data. Look for "走行不明 (unchecked)" claims – avoid them unless price reflects mystery mileage.
Confirm inspection reports. Dealers should provide the auction inspection sheet or dealer certificate stating condition and history.
Negotiate extras. Dealers often throw in small items (floor mats, window tint) to close the deal. Focus on the final out-the-door price.

Following these steps will help you safely buy a used car in japan. By choosing the right channel (dealership vs. auction), accounting for shaken costs, and completing the registration properly, you can enjoy your car without surprises.

Written by Dimash Nurzhau, a real estate marketing specialist based in Tokyo. Dimash creates content that helps international residents navigate Japan’s housing market with clarity and confidence.