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Why you should get a Light Car or 軽自動車 in Japan

Why you should get a Light Car or 軽自動車 in Japan

I’m on my third car now, in my fourth year of living in Japan. I went from a small sporty T31 Xtrail to a full-size frame-on-body, lifted 215 Hilux Surf, and now I’m driving a JF1 Nbox.

The most sold car in Japan is a light car for a reason. They come in a variety of shapes, colors, and brands to fit whatever niche you may be beholden to. In need of space? The Toyota Pixus Mega & Daihatsu Wake boast the most storage capacity of any light car in the tall wagon group. Still need more? Get a light van or truck. Wanna go off-roading or flex at the mall? Jump in a Suzuki Jimny, throw in a three-inch lift kit, and you’ll be making Land Cruiser drivers rethink their life choices. Feeling the need for speed? Get in a Copen GR Sport or a Honda S660. Wanna go green? How about a Nissan Sakura?

Light cars might have a displacement limit of 660cc and a size limit, but they make up for it with lower monthly insurance rates, lower yearly taxes, and fuel economy comparable to some Prius models. Like dressing up your car? You can customize to your heart's content! One tire for my Surf runs around thirty-eight thousand yen. I can get a set of AT or MT tires for thirty thousand yen. With all the cash you’ll save from buying a kei car, you’ll be able to put down your 10% on your first home in no time. It’s just a smarter financial decision.

When it comes to picking a location to buy one, though, it can be difficult not to get ripped off. The general Japanese market doesn’t value high mileage cars, but that doesn’t stop dealers from trying to sell them at higher than their market value to make a profit. Check out my article on where to buy affordable cars in Japan for more details.

Type Tax Rates (Annual)
Old Tax Rate New Tax Rate Heavy Tax Rate
Three-Wheeled (660cc or less) 3,100 yen 3,900 yen 4,600 yen
Four-Wheeled (660cc or less) Passenger Business Use 5,500 yen 6,900 yen 8,200 yen
Private Use 7,200 yen 10,800 yen 12,900 yen
Cargo Business Use 3,000 yen 3,800 yen 4,500 yen
Private Use 4,000 yen 5,000 yen 6,000 yen
Engine Displacement Automobile Tax (Private Passenger Vehicles) from October 1, Reiwa Year 1
1,000cc or less 25,000 yen
Over 1,000cc to 1,500cc 30,500 yen
Over 1,500cc to 2,000cc 36,000 yen
Over 2,000cc to 2,500cc 43,500 yen
Over 2,500cc to 3,000cc 50,000 yen
Over 3,000cc to 3,500cc 57,000 yen
Over 3,500cc to 4,000cc 65,500 yen
Over 4,000cc to 4,500cc 75,500 yen
Over 4,500cc to 6,000cc 87,000 yen
Over 6,000cc 110,000 yen

Data source: SBIS

Author: Probably Peter | Posted on: Aug. 17, 2024