Buying a car in Japan is possibly more complicated than anywhere else in the world, however once you understand the process, purchasing a car can be relatively straight forward and hassle free.

Regardless of where you are living, one of your first decisions after deciding to buy a car should be what the type of car to buy. Of course personal choice and taste will greatly influence your decision, however on many occasions we have seen preference come second to practicability. Remember, roads in Japan are narrow, fuel is expensive and parking is tight!

For a consumer who is the market to buy a car, basically there are 3 avenues available to find and purchase a car: 1) Privately, 2) Private Dealership, such as Occidental and 3) a Manufacture Dealership i.e. Nissan or Honda.

Privately: Buying a car privately is generally considered the cheapest method of purchasing a car. This maybe true in your home country, however in Japan cars depreciate at a swift rate, and thus there are many cases where consumers have bought cars privately, at prices greatly exceeding market levels. Before you buy, its best to shop around or work with a company that a friend or colleague has recommended.
Further points to consider for a private purchase:
- You will need to perform the change ownership or organize a company to do so.
- Check there are no outstanding bills prior to money exchange. I.e. Yearly Car tax is paid.
- Be aware! Generally the seller is leaving the country soon after the sale, so if any problems arise after the sale, nothing can be done as the seller is usually long gone!
- Find an insurance company that will offer optional Insurance
- Important – if you are spending a considerable amount of money on the purchase, make sure the car has not been in a prior accident. This will greatly influence the purchase price and later resale value of the car.
- A warranty will not be available.

Private Dealerships: There are few companies in Japan that specialize in supporting expats with car related matters. These companies focus on providing automotive services in English, and generally because they are expats themselves, they understand your concerns and the barriers that you might face as a foreign driver. Such companies can supply new and used cars, depending on your needs, budget etc. Most used cars are sourced from the gigantic car auctions in and around Tokyo, thus the choice for the consumer is huge, offering a selection of cars at different prices. If you are in the market for a new car and your Japanese is not workable, then a private dealership can also help in this area. Generally they can negotiate a better selling price on your behalf mainly due to the long term relationships in place and volume discounts.

Generally private dealerships will offer the following services in English;
- After sales service
- Expat finance
- Warranty with the sale of vehicle
- Car Servicing capabilities
- All paperwork is handled in house
- Information services in English (newsletter).i.e. advise of changes in the law
- Additional services and products will be available to the buyer at a discount i.e. navigation systems / stereo products
- In-house insurance services
- Car buy-back program when you finish your term in Japan
- International car shipping options i.e. take your car home

Manufacture Dealership: Below are a list strengths and weaknesses of buying a car from a Manufacture dealership.

Strengths:
- A buyer can view the full range of cars on offer
- Warranty available
- Paper work is handle by the dealer
- Car servicing capabilities

Weaknesses:
- Communication difficulties with entire sale process
- Paying extra for incidental costs that usually can be negotiated out of the contract. I.e. Floor mats, delivery costs.
- Negotiation power
- After sales service in English
- A lack of English support options for the car
- No Expat Finance (Japanese Guarantee required in most situations).

If you have any questions or would like additional information please feel free to drop me a line.

Safe Driving!