NEWS

Hello everyone!

We are now in the autumn season in Japan.

Autumn can be called the driving season.

So, starting today, I would like to introduce the procedures for purchasing a car for the first time in Japan.

This will be a real estate related story, such as regarding parking contracts, so this information will be necessary for those who need a car along with their new home.

To be honest, it may be quite difficult for you foreigners. From start (deciding to buy a car) to finish (receiving the keys), the entire process is said to take more than a month. You might think it took a month because it took so long to find a good car, but that part of the process is just a few days. Still, for many people, the longest part of the process is grieving over whether a car is worth buying, and then finding the car they want to buy.

In this article I want to discuss some considerations to take into account before buying a car.

Cost of Owning a Car in Japan
I want a car! But realistically speaking, can I afford one? There are two aspects to this. There are two aspects to this: your financial situation and your physical situation. Let's look at the physical situation first. If you don't have a place to put the car, there is no point in touching your bank account. 

Parking.
Where do you plan to park your car? Unless you go a bit out in the country, few apartments have private parking. However, that does not mean you cannot afford a car. If you decide you want a car, you search Google for a nearby monthly parking lot. The trouble with this type of parking, however, is that you can't find everything online. Even those found online are not necessarily on the same Web site.

The easiest way to find a parking space is to walk around your neighborhood and look for a sign that says “Monthly Parking” in Chinese characters on the parking sign. It will probably have a phone number on it.

Then another question comes to mind. Do you speak Japanese? If you don't speak much Japanese, getting a car will be difficult, if not impossible. You will need a written contract to park the car. If you cannot understand it yourself, you will need to find a friend who is willing to devote a significant amount of time (or sell it to you). This goes on throughout the entire process of getting a car. Because...this is Japan!

Anyway, find a parking space, contact the property manager, and find an available parking space!

FINANCIAL
Now is the time to check your finances. This is good timing in a way.

The good news is that cars in Japan are relatively cheap. You can easily find a car with a back-up camera, navigation system, and various other features for under 250,000 yen total. However, you will often be told that you cannot get a loan because you are a foreigner. If you are a permanent resident or a long term visa holder, you may be able to get a loan. But if you have a one-year visa, you had to pay cash up front. 

Upset
Besides the car itself, you also need to consider the inspection . By law, every two years you must go to a car dealership to have your car inspected for various issues and to renew your car insurance. This can cost an additional 70,000 to 150,000 yen every two years, depending on the type and year of the car. The car itself is inexpensive because it can be inspected. If you are considering a car, check the expiration date of the inspection. It is cheaper to buy a 250,000 yen car with an inspection for the following year than a 200,000 yen car that needs to be inspected at the time of purchase. More generally, you should also consider how long you will be in Japan, whether the benefits outweigh the costs, and whether the time of renewal of the car inspection fits into your plans.

Optional Insurance
In addition to regular car inspections, optional insurance should also be considered. The compulsory insurance that comes with the car inspection covers only third party injury and death and does nothing to help you or your car. Unlike many other countries, you do not need to purchase further insurance, but if you want to be safe, you will probably want to. Fortunately, there are plenty of options online and it is very easy to apply. According to dealers, applying for insurance online is actually the cheapest way to go. The annual premium is roughly ~$100,000, but considering that you purchased an older car with high mileage, you can't complain!

Recurring Expenses
While the car itself and vehicle inspections are the main expenses, it is important to consider the smaller expenses that arise over time. Parking in a monthly parking lot in the suburbs of Tokyo probably costs about 10,000 yen per month. In the 23 wards of Tokyo, it is not uncommon to spend 50,000 yen or more per month, so this is really not that bad. Gasoline is also available, but much more expensive than in the U.S. This is not surprising given the lack of natural resources in Japan. 

What many people don't realize is that Japan's highways are almost entirely toll roads. These tools can be quite expensive. However, since the tolls are about the same as taking the train, I personally don't mind so much. Of course, depending on the distance you drive and where you want to go, these tolls can add up to a surprisingly high additional cost. Highways are usually only necessary if you are traveling from city to city, but the time you save by opting for the expressway is almost always worth it.


How was it?

We will continue next week.

Please stay tuned!


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