New and used cars are relatively inexpensive in the home country of Toyota, Nissan, Honda and Mazda. Brand new compact cars sell for less than a million yen.
Japanese cars are classified into regular and light (keisha) cars, which are subject to different taxes and regulations. Keisha cars (yellow license plates) are smaller vehicles that must conform to strict size, weight and power restrictions. In return, they enjoy several tax and toll breaks, and relaxed ownership regulations that make them cheaper and easier to own than regular cars (white license plates).
Owning and operating a car involves numerous expenses, including compulsory inspections (shaken) every two to three years, yearly automobile taxes, mandatory and optional insurance, high parking fees, toll expresswaysand gasoline cost.
Shaken is a compulsory safety inspection, which cars in Japan have to undergo every two years, except new cars, for which the first inspection is not due until three years after purchase. Shaken typically costs between 100,000 and 200,000 yen, and besides the actual inspection fee, includes a weight tax (typically 8,000 to 50,000 yen) and mandatory insurance (about 30,000 yen).
Since the mandatory insurance does not provide full coverage, it is recommended to purchase additional, secondary car insurance. Furthermore, the annual automobile tax, which depends on the engine size, typically costs between 10,000 and 50,000 yen. An acquisition tax also has to be paid when you buy a new car.
Numerous documents are required to purchase a car, including forms to register your car and to verify ownership of a parking space. Used cars additionally requires a transfer of ownership. Keisha cars enjoy more relaxed transfer processes. Fortunately, if you buy a car through a car dealer, they will handle most of the paperwork for you, while your main task is to sign the forms with your officially registered, personal stamp (inkan).
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