Why are Japanese used cars often in good condition and have low mileage?

Japanese cars are typically used on weekends and during holidays rather than for daily commutes, resulting in low mileage. Strict vehicle inspections every few years also encourage owners to keep cars in top condition.

What are the reasons behind frequent car replacements in Japan?

High car maintenance costs, including parking and re-registration fees, encourage many Japanese families to upgrade to a new vehicle every few years. The preference for newer cars is also influenced by strict registration and inspection standards.

How does Japan’s used car auction system work?

Japanese used car auctions operate on a bidding system, accessible only to registered dealers. Vehicles are sold to the highest bidder, often attracting both domestic and international buyers due to Japan’s reputation for well-maintained cars.

What advantages do Japanese used car auctions offer international buyers?

Japanese auctions offer a wide variety of vehicles, many of which are in excellent condition at lower prices due to Japan's high depreciation rate. Companies like Provide Cars help buyers by managing bidding and securing quality cars at competitive prices.

How does Provide Cars assist buyers with Japanese used car auctions?

Provide Cars has direct access to multiple Japanese auction memberships, offering buyers a transparent bidding process. Buyers choose their vehicles, and Provide Cars places bids on their behalf, ensuring competitive pricing and reliable service.

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Introduction to Buying Japanese Used Cars

FrenchJessica

Lineup of Japanese used cars, featuring a variety of white vehicles from different manufacturers, arranged facing each other.

What makes buying from Japan worthwhile? Why do 30 to 40% of cars sold in the Japanese used car auctions get exported? There are many reasons, but perhaps the biggest is range of varieties and condition of the vehicle, for an often low cost.

COST OF OWNING a car in Japan. Most family houses or apartments only have one car park per household. In Japan to own a car, you must prove you have a car park. If you do not own a car park, you must RENT one. Although a new car in Japan is cheaper than in other countries, the monthly costs make ownership expensive. If a new car is relatively cheap compared to the monthly costs of owning a car, and you can only have ONE car, might as well get a NEW one every 3 or 5 years! Added to this, the trade in used cars is nearly ALWAYS through a dealer. There is no private used car market in Japan. All these factors make car devaluation or “depreciation” the biggest impact on car prices. The rate of depreciation in Japan far exceeds that of other countries. This price gap is the reason for the export market in used cars.

Why Choose Japanese Used Cars?

The average Japanese household likes to own a car. The average Japanese salaryman does not drive his car to work. It is a mode of transportation for the weekends and the long holidays. Even so, each weekend, it receives a wash. It is a beloved, though often very little used member of the family. For this reason, you can find 3, 5 and 7 year old cars in Japan that are still within low kilometers and in very good condition.

Why 3, 5 and 7? That is when the new “expensive” registration is due. That is the point in time when the family decides whether their beloved vehicle needs to be replaced with a newer version, as per the persistent advertising on TV. So this beloved, now rejected for something new, excellent condition, low km vehicle becomes available as a trade-in in the used car auctions.

What makes the Japanese car market attractive?

1. Competition creates innovation.

Japan leads the world in hybrid car technology. Toyota believes the electric world car market demand will be limited and there will always be a market for ICE vehicles. Green ICE vehicles being hybrid. The unique size of the Japanese population allows for the competition of 4 to 5 major brands, the Toyotas, the Nissans, the Hondas etc. Whereas in a smaller populated country this number of makers would not be possible. Add to this, the decades of exporting into a harsh competitive world, the brands had to innovate or die. Innovate they do and the results are some very unique, efficient and reliable vehicles.

2. Japanese Registration. 3, 5, 7 years.

When a new car is bought, its registration lasts for 3 years. After that the vehicle must be reregistered every 2 years. The registration is also a warrant of fitness. Vehicle weight taxes and other fees means the Japanese family must fork out 200,000 yen on average for this registration process. This is also the decision time for the owners. Do we reregister the car or go for one of those new ones the commercials tell us we MUST have or be unhappy for the rest of our lives?

Illustration of a car with a registration document, showing the Japanese vehicle inspection (shaken) timeline at 3, 5, 7, and 9-year intervals.

3. Well-maintained vehicles, family pride.

Although the Japanese male may not do much with-IN the Japanese household, car cleaning and maintenance is a major requirement of all things “male” Japanese. Foreigners living and driving in Japan are regularly surprised by the “shine” of the average Japanese family car on the highway SA (service areas). Especially in comparison to the unwashed cars they drive!

4. Proof of Parking Space Required for Car Registration

Even if you have a driver's license in Japan…. are currently employed by a reliable company…. and have the bucks to buy a car in Japan… this doesn’t guarantee you the right to own a vehicle. I know what you’d be thinking. WHAT?!

To register a vehicle under your name, you MUST prove to the local police office that you have space to park your car. And please don’t whip up your phone and show them the Google Maps of empty space on your street. Surprisingly, this won’t work. You must own or have the right over the land where you can park the car. There must not be ANOTHER car already registered in this space.

So what if your rental apartment does NOT have a car park but you want to own a car? Answer: you rent a monthly car park. In central cities where space is at a premium, these rental spaces can cost up to 60,000 yen per month. That is another expense every 3, 5 or 7 years that puts pressure on buying a newer vehicle. Somebody who rents a 60,000 yen car park each month is not going to be putting an “old” 7 year old vehicle in it.

5. Public Transport for Commuting, Not Cars

Commuting to work by car is looked down upon in Japan and is quite understandable. Most Japanese companies cover their staff’s work commute, and they strongly advise using public transport.

If you have visited Japanese cities, you know that Japan's train system is outstanding. You can go almost everywhere in the towns by train, quicker than traveling by car. Why wouldn’t you use the public transport system when it is significantly cheaper, time efficient, and you can schedule the exact minute of departure and arrival? Additionally, you must pay for expensive car parking in the middle of the city, let alone the anxiety of finding that car park!

92% of Japanese live in urban cities and towns. Imagine the chaos and traffic if everyone traveled to work in their cars! So, most Japanese domestic cars stay home and are used mostly on weekends—no wonder the JDM cars are often in low kms.

Commuters crowding onto a busy train platform in Japan during rush hour, with many wearing business suits and using smartphones.

Understanding the Auction Process

What are Japanese Used Car Auctions?

Japanese used car auctions are where pre-owned vehicles can be sold and purchased in Japan by REGISTERED DEALERS in a highly organised system. They are most commonly( but not always) operated by a bidding system, and the vehicle is always sold to the highest bidder. Some auctions list large-scale and wide varieties of cars (up to 18,000 vehicles in one big auction site). Automobiles sold at auctions vary from Japanese domestic cars, to imported foreign cars, as well as trucks, k-trucks and sometimes equipment. These auctions attract domestic and international buyers hoping to purchase quality vehicles at very reasonable prices. However, ALL auctions require membership and are not available to the Japanese public.

Japanese Used Car Auction Memberships.

Some car exporters have followed a two-step process to become members of these auctions. First, they have to become a used car dealer. Next, they build up memberships in each of the auctions. This lengthy process often involves guarantors, an antiquated system that remains in Japan. Only then do they attain bidding rights to purchase from the auctions. Many exporters skip this daunting step and purchase used vehicles through a secondary party, such as ASNET. There are better ways to purchase than this, as there is no control over the bidding process, and the car is often purchased at more expensive prices. This is where a company like Provide Cars comes in. We have the auction memberships; you view, and let us know the car you’d like us to bid on. It's a win-win for you and us!

Q＆A

Why are Japanese used cars often in good condition and have low mileage?: Japanese cars are typically used on weekends and during holidays rather than for daily commutes, resulting in low mileage. Strict vehicle inspections every few years also encourage owners to keep cars in top condition.

What are the reasons behind frequent car replacements in Japan?: High car maintenance costs, including parking and re-registration fees, encourage many Japanese families to upgrade to a new vehicle every few years. The preference for newer cars is also influenced by strict registration and inspection standards.

How does Japan’s used car auction system work?: Japanese used car auctions operate on a bidding system, accessible only to registered dealers. Vehicles are sold to the highest bidder, often attracting both domestic and international buyers due to Japan’s reputation for well-maintained cars.

What advantages do Japanese used car auctions offer international buyers?: Japanese auctions offer a wide variety of vehicles, many of which are in excellent condition at lower prices due to Japan's high depreciation rate. Companies like Provide Cars help buyers by managing bidding and securing quality cars at competitive prices.

How does Provide Cars assist buyers with Japanese used car auctions?: Provide Cars has direct access to multiple Japanese auction memberships, offering buyers a transparent bidding process. Buyers choose their vehicles, and Provide Cars places bids on their behalf, ensuring competitive pricing and reliable service.