Many people may be interested in purchasing a new used car and drive as they have obtained a driver’s license in Japan or have passed the Foreign Driver’s License Switching Test. In this article, we will explain in detail the recommended way for foreigners to buy a used car in Japan.
Contents
4 Ways to Buy Used Cars in Japan
There is no big difference in the way of purchasing a used car between Japan and your home country. As in your home country, you can purchase a used car in the following 4 ways.
- Purchase at a used car dealer
- Purchase from a dealer
- Purchase from a private seller
- Purchase at an auction
Especially for those who have no knowledge about cars, “used car dealers” and “dealers” are the most common way.
On the other hand, private sales and auctions may be cheaper than used car dealers and dealerships, but without specialized knowledge about cars, these purchase methods are prone to troubles and other risks, so please be very careful. Details follow below.
Used car dealers
Used car dealers deal in cars that they buy in-house or purchase from used car auctions, and feature a wide variety of makes and models.
Therefore, compared to dealers and other dealerships that have special agreements with specific manufacturers, the advantage of used car dealers is that they can make used car proposals from a neutral standpoint.
Typical used car dealers in Japan
- AUTOBACS
- APPLE AUTO
- KEIYU INTERNET AUTOMALL
- GULLIVER
- NEXTAGE
- CAR SEVEN
- RABBIT
- CARCHS
Another attraction of used car dealers is that they are more affordable than dealers. If you are looking for a wide variety of cars and low prices, a used car dealership is the place to go. However, used car dealers vary in the size, from small and medium-sized local dealers to large nation-wide chains. In addition, dealers vary in the quality of their used cars, warranties, after-sales service, and the types and quality of services they provide, such as maintenance, vehicle inspection, and auto loans.
Therefore, it is important for buyers themselves to assess the condition of used cars and services to some extent, and to find a reliable dealer. As the recent news of scandals at major used car dealers has shown, it is not always true that “bigger is better,” so do not be put off by cheapness alone, but choose your dealer carefully.
| Advantages of used car dealers | l A wide variety of car models
l Large inventory l They can make proposals from a neutral standpoint, without being bound by the manufacturer’s boundaries. l Prices are more reasonable than those of dealers. |
| Disadvantages of used car dealers | l The types of services offered and the contents of the warranty differ depending on the dealership.
l The quality of used cars varies from store to store. l Prices may not be fair, so you need to get quotes from multiple dealers. |
Car Dealer
Dealers have a special dealership agreement with a particular automaker and sell only used cars from that particular automaker. Dealers handle used cars based on strict inspection standards.
For example, unused cars (new used cars) that have been used for display or test drives, and used cars certified by the manufacturer (certified pre-owned cars) are sold in good condition. The dealers are subject to stricter restrictions than used car dealers, so the quality of the used cars, the generosity of their support, and the quality of their warranties are all advantages.
In addition, since they offer maintenance using genuine parts and full warranty coverage, customers can use their cars with peace of mind over the long term.
On the other hand, the disadvantages are that prices are higher than those of used car dealers and that it is difficult to compare cars from several manufacturers because they handle only cars from the same manufacturer.
| Advantages of dealers | l High quality used cars available (new used cars, certified pre-owned cars, etc.)
l Stable quality of used cars l Generous warranty and after-sales service |
| Disadvantages of dealers | l Dealers only deal in vehicles of the same make.
l Prices are higher than those of used car dealers. |
Private sales of used cars
In recent years, private sales of used cars have been increasing through flea market applications. The main feature of private sales is that there are no intermediate margins or sales commissions because the seller and buyer deal directly with each other.
Therefore, it is an attractive method for those who want to reduce the price of purchasing a used car. On the other hand, you should be aware of the risk that it is only a private transaction and there is no guarantee anywhere if something happens.
For example, it may be difficult to confirm the actual vehicle in the case of a private sale. Also, the seller may not always be nearby. If you are purchasing a car in a distant location, you may have to pay for transportation and shipping costs to get there. Also, if the seller is not a used car professional, that person may not have an accurate idea of the car’s condition.
Unexpected defects may be discovered after the purchase, or problems may arise due to negligence of procedures such as changing the ownership of the car. In addition, since fraud is rampant, these risks should be carefully understood before making a decision. Careful judgment is necessary.
For first-time buyers of used cars, it can be said that this is a highly challenging purchase method.
| Advantages of private sales | l Possible to purchase at a low price with no intermediate margin.
l There is a possibility to purchase rare car models. |
| Disadvantages of private sales | l Need to judge the quality of used cars by yourself.
l It is necessary to carry out procedures such as ownership change by oneself. l There is no guarantee in case of trouble or crime. |
Used Car Auction
There are two types of used car auctions, one for individuals and the other for vendors, but it is mainly Internet auctions in which individuals can participate directly.
For example, on auction sites such as Yahoo! auction sites, for example, allow individuals to purchase used cars from private sellers. The advantage is that you can buy a used car at a relatively low price, since the auction format is just that, an auction, and in effect it is a private transaction with no middleman margin or sales commission. However, there are risks involved in purchasing at auctions.
For example, if a defect is found in the car after purchase, there is often no warranty, and you may have to bear the repair costs yourself. In addition, you will need to change the ownership and pick up the vehicle yourself, which may be challenging for beginners who are not familiar with cars.
If you want to use used car auctions for vendors, it is not easy for individuals to participate, so it is common to use an auction agent. If you ask the agent to find the type of car you want and place the winning bid, it is possible. However, be aware that a commission fee will be added to the price if you ask the agent to act on your behalf.
| Advantages of used car auctions | l Possible to purchase cars at a low price because there is no middle margin.
l There is a possibility of purchasing rare car models. |
| Disadvantages of used car auctions | l Need to judge the quality of used cars by yourself.
l You need to do the procedures yourself, such as changing the ownership of the vehicle. l There is no guarantee in case of trouble or crime. |
You can also use a used car search site or a used car suggestion service.
In addition to used car dealers, dealerships, private sales, and used car auctions, there are also used car search sites and used car suggestion services. Used car search sites are convenient tools that allow you to search for the used car of your choice by setting specific criteria such as car model, year, mileage, and budget.
For example, you can browse the inventory information of several stores at once from the comfort of your home, allowing you to make comparisons efficiently. In addition, some sites offer their own warranties, or may even provide an agency pre-inspection service for vehicles located far away.
This allows you to make a purchase with peace of mind without having to visit the site in person.
If you are not sure what kind of used car to choose, we also recommend our Used Car Suggestion Service. You can tell the service’s dedicated staff in detail about your desired conditions, and they will consult with you and suggest the best used car for you. For example, by telling the staff your purpose of use, budget, and preferred car model, the shop staff will find the right car for you and introduce you to the place where you can purchase it.
This service is recommended for those who are short on time or lack confidence in their used car selection.
Used car dealers and dealerships are recommended for foreigners buying used cars in Japan!
Although we have explained various methods, the safest way for a foreigner to buy a used car in Japan is at a used car dealership or dealer. This is because it is the simplest and most straightforward way to purchase a used car. There is no need to understand or consider the methods and risks of private sales, auctions, search services, or suggestion services.
Just “go to the store, ask for advice, and choose” is the simple way to make a purchase, so there is less chance of making a mistake or getting into trouble. If you want a good quality used car not taking into account of the money, if you want generous service and warranty, or if you have a specific manufacturer in mind, you should visit a dealer. If you have nothing in particular in mind but want a car, why not visit a used car dealer first?
