How to Buy a Car

Japan is the land of cheap used cars. You’ll see a used car dealership on every street, in every town, but not so fast. The car buying process in Japan is insane. To be clear, buying the car is easy, but preparing the necessary paperwork can be a nightmare. That’s why we made this step-by-step guide, so you can buy your dream car, and avoid that nightmare. Pay close attention to the video, and don’t give up. Having a car in Japan is worth trouble. You can do it. Trust me!

TIP* While you’re in the process of getting your documents ready, which might take a few weeks, do as much car shopping as you can. You want to find the right car, and the right dealership. Some places won’t do business with foreigners, so take the time to find a foreigner friendly dealership. You be glad you did.

Driver’s License

If you live in Japan, and want to drive, you only need a international driver’s permit. This is a super simple document to get in America. Go to a AAA office, fill out a form, take a photo, and pay $40. The form asks for the “start date” of the driver’s permit. The “start date” should be one month after you arrive in Japan, because it will take you at least a month to buy a car in Japan. Japan only allows international driver’s permits for your first year in Japan. You can not keep getting new driving permits, you will need to “convert” your USA license into a Japanese license, and the process is hell. There are two ways to do it: the “good state” way and the “bad state” way.

The “Good State” Way

Six months before you move to Japan, get a driver’s license from a “good state:” Hawaii, Indiana, Maryland, Ohio, Virginia, or Washington. Having this driver’s license exempts you from taking the driving skills test, and you will be able to receive your Japanese license on the same day you apply. Bring these documents with you to Japan, so you can “convert” your license to a Japanese license.

  • Valid foreign driving license
    (from a good state)

  • Passport

  • Photograph
    (3cm × 2.4cm, color, passport style, plain background, taken within six months before the date of application)

  • Official Driving Record
    (you can get this at your DMV in America. Might need one from previous states you’ve had driver’s licenses)

  • Japanese translation of your license
    (Go to the The Japan Automobile Federation (JAF) website, submit pictures of your drivers license, and pay 4000 yen. They will email you a few days later. The email will have a code in it. Go to a 7 Eleven, and use the kiosk to print out the official / required document)
    https://english.jaf.or.jp/driving-in-japan/drive-in-japan/foreign-nationals-license

  • Official copy of your Certificate of Residence
    (“Jumin-hyo” that which shows your registered address, and can be got from your city hall)

  • More Proof of Address
    (They want to see more proof you lived in a “good state.” Bring in 3 months of utility bills from an address, in a “good state.” These are 3 months of bills dated after the date on your “good state” license. The utilities need to be in your name. You might need to photoshop these documents, so take your time, and make them look real. Bank statements and credit card statements won’t work)

  • Random Shit?
    (If you were employed in the “good state,” please bring a proof of employment letter which verifies the period during which you were employed. If you were a student, please being your academic transcript and your graduation certificate. Please bring the original copies of these documents)

Bring all this shit into the DMV, and they will make you a document review appointment. Pass the document review, pass a written knowledge test, and pay $50. You’ll have your license in a few hours. Suckers!

The “Bad State” Way

If you enter Japan with a drivers license from a “bad state,” in addition to the paperwork, you must pass a driving test. The test costs around $20, and you will fail it many times. REAL TALK: you have to pay $20 to retake it, and make a new appointment. Each retake appointment is a month wait, so it will take you around 5 months to “convert” your drivers license. The test is not hard. The government just want’s your money. There are many YouTube videos on, “How to pass the driving test,” but you’re better off getting a “good state” drivers license 6 months before you fly yo Japan. Avoid the driving test at all costs.

Parking Certificate

Most Japanese cities require car owners to prove they have a parking spot. The parking spot must be within 2 kilometers of your home address, and the correct size for your car. (Some rural areas don’t have parking regulations). The process to prove parking is complicated, but there are only two occasions that demand it. Buying a car, and changing / moving the address of your parking spot. NOTE: I’m going to assume you have already found an appropriate parking spot, and signed a lease. Check out the “Rent” page for more information.

Dealership

When buying a car from the dealership, they take care of the parking certificate document. Just give them these two documents:

  • Your lease (The document will state that a real estate company is renting you a parking spot, and the address of the parking spot)

  • A map / diagram of the parking lot that shows your specific parking spot. (This is a normal rental document)

They will use these two documents to get the parking certificate. Then they will use the parking certificate (and other documents) to get the car registered in your name. Super easy.

Moving Parking Spots

You can do this! (Just pray you never have to) Let’s take it step-by-step:

  1. Go to the police office in the town your new parking spot is located, and get a parking certificate application. (They have a English translation version)

  2. Write in your car’s information. Write in your home address information.

  3. Bring the application to your parking spot real estate company. (They will fill in the rest of the document, and stamp it)

  4. Pick up the document, and bring it back to the police office. Pay them 500 Yen, and they will tell you to come back in a few days.

  5. Come back to the police station. Pay them again, and they will give you the parking certificate, and a new sticker for the back glass of your car.

Car Taxes

  • Road tax (basically a yearly registration fee) is levied by a local / prefecture government. The bill gets mailed to your home address, and should be paid before May 31st. The letter / bill can be paid at any convenience store. If you plan on leaving Japan in the spring / summer. Might want to sell your car before April 1st, to avoid getting that bill again.

  • Weight tax (fees added to cost of the bi-annual JCI Shaken inspection) is levied by the central government.

Insurance

  • Jibaiseki hokenIn is mandatory liability insurance. It comes with your car, if you buy from a dealership, and provides almost no protection / coverage. You keep the paper in the car, and it’s active for 2 years.

  • Nin-i-hoken is voluntary insurance. This is similar to “real” car insurance, like in America, but you’re not required to have it. If you want it, ask your school for help, and they’ll find a company that insures foreigners.

Shaken

Shaken (車検) is a 60-point vehicle inspection. All cars must be inspected every 2 years. The car needs to go to an inspection center for a few hours, but the process is complicated, so could end up taking 2-3 days. The cheapest way to get your shaken inspection done, is to bring the car in yourself. There are YouTube videos on how to do this, but you probably need to know Japanese. The easier way is to bring the car to a larger garages know as “minkan shaken jou.” Don’t stress about this too much, because you’ll have left Japan before your car needs a shaken.

How to Sell a Car

The easiest way is to sell your car, is to bring it back to the dealership you bought it from, and see if they will buy it back. You could also try a “Gulliver” car dealership. They have locations all over Japan. The price will be super low, but the process would be super simple. You ca expect them to give you 20% of what you originally paid for the car.

You can get a higher price if you can sell it to another foreigner (not a Japanese person) in Japan. Here are the documents the seller and buyer need to do the deal.

Car Seller

To sell your car you need 5 things:

1) Car & keys
2) Shakensho document (the car title)
3) Jibaiseki hoken document (mandatory vehicle insurance)
4) Road tax receipt (similar to registration fees)

Optional:
Inkan (personal stamp) & Inkan certificate of authenticity (issued by your local city hall in the last three months)

Car Buyer

You need 6 things to buy a car:

1) Money
2) Parking Certificate (made with the information of the new car)
3) Jumin-hyo (Certificate of Residence, made at your city hall in the last 3 months)
4) Jibaiseki hoken document (mandatory vehicle insurance)
5) Inkan you used to buy the car (personal stamp)
6) Inkan certificate of authenticity (issued by your local city hall in the last three months)

TIP* The buyer and seller should go to the Transport Office together.