Why are Japanese used vehicles so affordable?
Many people who visit Japan for the 1st time are speechless and can’t believe how affordable used cars are in Japan. This comes as a surprise to many people as Japanese cars are known for their reliability and quality and despite them being used, they are often in very good condition yet sold for so cheap. There are many reasons why this is the case, and I would like to go over 3 of the reasons why used cars are so affordable in Japan.
The “Shaken” system
For those who never owned a car in Japan or don’t know much about registering a car in Japan, you might not know what Shaken is. Shaken is a compulsory inspection for all vehicles in Japan that must pass this extremely rigorous and hard test. When a car is new, it is given a 3-year shaken however, every time after that is 2 years. The cost of Shaken ranges upwards of around 1000USD$ every two years and the older the car is, the harder it is to pass shaken every time. This makes selling your old car in Japan very appealing after a certain amount of Shaken as owning a new car makes this procedure very easy.
Cost of new cars
Japan has some of the most competitive new vehicle costs in Asia and the rest of the globe. This is due to Japan's vast economy, which allows for "scale economies," as well as the fact that automobiles made locally do not need to be shipped as far for sale. Motor vehicle manufacture is one of the most important sectors of the Japanese economy, and local consumers gain as a result of its magnitude.
Mentality
The Japanese people are very risk-averse people which means that they would try not to take many risks as possible. There is a myth here in Japan that once a car reaches a certain amount of km’s, it is deemed as too old and that a new vehicle must be bought to swap it. This concept originally started during Japan’s golden era in the 80s and has lasted up until now. Despite a lot of Japanese cars lasting even over 350,000kms easily, you will often see Japanese people selling their cars in less than the cars expected life span.
Conclusion
There are many reasons why the used market for vehicles is very affordable in Japan, and there are reasons why cars are kept in good condition. These are “blessings” in some way for people who want to buy a used Japanese car from Japan as it is very possible to get a car in very good condition for less than a fraction of the price of how much it was used.
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FAQs
The underlying reason is the large economy of scale (Japan is the third largest economy in the world) which allows the manufacturers to sell their cars at a much lower price in the local market. Moreover, the Japanese are used to buy newer models whenever they arrive in the market.
Is it good to buy second hand car in Japan? ›
4. Good price. Buying your dream car sometimes can be out of budget, but why not get Japanese used cars (JDM). Japanese used cars are reliable and of good quality as mostly Japanese resale it in a few years of purchasing. So, mostly you will be getting a brand new car at a used car price.
Why do Japanese imports have low mileage? ›
Perhaps, you may think that exporters are trying to scam you and that they are not advertising the genuine mileage of the vehicle. Well, you should know that used cars from Japan usually have low mileage because they are put out of service after only four or five years.
Why are Japanese cars so much more reliable than American cars? ›
Another unique trait about Japanese cars is their impressive reliability. Many Japanese manufacturers perfect parts and designs before a wide release on the market, lowering the malfunction rate. This enables a much higher reliability rating as design flaws do not reduce it.
Are cars made in Japan better quality? ›
On Consumer Reports' list of most reliable cars for 2023, Japanese models dominated the list in seven out of 10 spots. Japanese cars also earned high praise in reliability from U.S. News & World Report, earning overall scores of 8 and above in all assessment categories.
How often are cars inspected in Japan? ›
A vehicle inspection (shaken or JCI inspection) is a compulsory inspection for all vehicles on the road in Japan that must be conducted every 2 years. It ensures that all vehicles on the road are properly maintained and safe to drive.
What is the 3 year rule for cars in Japan? ›
Three years after purchase, every new car has to go through an expensive inspection process, and once every two years after that. Furthermore, vehicles older than 10 years have to pass the inspection every year. As a result, most car owners in Japan write off their cars after 10 years and buy new ones.
Why do Japanese engines last so long? ›
There are several reasons for this, from their high quality of engineering, to their safety and product assurance, as well as the drive of the car once it hits the road. Japanese cars tend to have excellent suspension and handling as well, leading to a fantastic driving experience.
What is the life expectancy of a car in Japan? ›
As of March 31, 2023, the average passenger car in Japan was in use for about 13.42 years until its registration cancellation. This number represents a slight decrease from a vehicle lifespan of around 13.84 years in the previous year.
Why don t Japanese buy American cars? ›
It's the fact that the Japanese still build more reliable cars; they build smaller cars; they build right-hand-drive cars; they treat their customers better; and they advertise their wares. American auto companies don't do any of this and have never even tried.
Domestic Japanese brands like Toyota, Honda, and Suzuki are very popular among Japanese nationals for their performance and reliability. Often comfort, price, and functionality are the main factors Japanese people consider when buying a car as usually they are used for daily transportation or family outings.
What is the lifespan of a car in Japan? ›
As of March 31, 2023, the average passenger car in Japan was in use for about 13.42 years until its registration cancellation. This number represents a slight decrease from a vehicle lifespan of around 13.84 years in the previous year.
Are Japanese cars better than American cars? ›
When considering factors such as performance, safety features and price, Japanese cars consistently outperform American models in affordability, fuel-economy and reliability rankings, however, U.S. brands are well-known for producing robust trucks and SUVs.
Is it worth importing a car from Japan? ›
It's not so easy to get a proper service history of the car, for example, but generally the cars are of low mileage, in good condition and well-equipped. If you do go down that route, it's far easier to buy an already imported Japanese car (many companies are specialising in this).
