Lease Japan

One of the services that LeaseJapan can provide is assistance with purchasing a new or used car. The process and legally required paperwork involved with buying a car in Japan can be overwhelming and very confusing. Compounded by the fact that you possibly don’t speak or understand the Japanese language to the required level, this can make the process even more stressful. LeaseJapan can take the stress out of this process by offering you a total support package in English from start to finish.

Buying A Car in Japan

Buying a new or used car in Japan may seem relatively easy and inexpensive. Especially when you consider a Kei Car with an engine capacity of up to 660cc, sells for around 1,000,000yen. (approx. US9,000) However, the costs of owning and running a car can add up very quickly because of the various mandatory expenses that come with owning a car. These can include the following:

1. Shakken (Compulsory Inspections) every 3 or 2 years (depending on the age of the vehicle);
2. Vehicle Taxes;
3. Weight Taxes;
4. Acquisition Taxes;
5. Recycle Taxes;
6. Mandatory and optional Insurances etc.

The Shakken is a compulsory inspection which all used cars must undergo every 2 years. New cars first have their inspection 3 years after the initial purchase/registration. In order to pass this inspection and be deemed roadworthy, it can cost anywhere between 100,000 and 200,000yen. Apart from the actual inspection costs, there are also other costs included such as the Weight Tax (usually around 10,000 to 80,000yen) and mandatory insurance of around 30,000 to 40,000yen. There is also the yearly Vehicle Tax which is calculated depending on the engine size and can cost between 30,000 and 80,000yen. The Vehicle Tax, Weight Tax, Acquisition Tax and Recycle Tax must be paid when you purchase a new car.

When you purchase a car, there are numerous documents that must be filled out, collected and lodged to register the car in your name. These include forms to verify that you have a proper car parking space (called a shako-shoumei) and this must be lodged with the police. If you purchase a used car, it becomes even more complicated by additional forms required to prove the transfer of ownership.

Here is a simple explanation of the steps and paperwork that may be required in purchasing a car in Japan:

1. Car Registration Document – Otherwise known as ‘shakken,’ this compulsory inspection is done after 3 years for new cars and then every two years thereafter. The shakken and the Compulsory Insurance document (CALI, or JCI) must be kept in the vehicle at all times. If you drive a car not insured by compulsory insurance, you will face imprisonment of up to one year or be subject to a fine of up to 500,000yen. You will also be charged 6 penalty points, which means you will have your driver’s license suspended.
2. Seller’s Notarized Signature/Certified Stamp – The validity period for the Notarized Signature is three months and cannot be renewed if the party has left Japan. The validity period for the Certified Stamp varies, but is generally for three months.
3. Power of Attorney – This is a Japanese form that must be completed in Japanese. The information therein must match that of the Notarized Signature form. This also applies to the seller.
4. Certificate of Transfer (Bill of Sale) – This form should be completed in Japanese, and must match the Notarized Signature.
5. Certificate of Vehicle Tax Payment – This is required from the seller at this time. Each May a bill will be sent to the registered owner of the car. The tax bill is payable at most banks or post offices. The receipt must be kept as proof of payment.
6. CALI/JCI Receipt – The seller must provide you with this, and it is then the responsibility of the buyer to keep it updated and in the vehicle at all times.
7. Certificate of Alien Registration: You will require a Kisaijiko-shoumeisho from your local ward office.
8. Certificate of Permission for Use of Parking Space – This is an official form stating the new owner has a car parking space and is used as part of the application to the police for a parking permit. This document needs the hanko (Japanese stamp) of the car parking space owner.
9. Location of Parking Lot & Position of Parking Space – This can often be obtained by the real estate agent, building owner or building management company however if unavailable the new owner may need to make a map. The map needs to show your parking space in relation to other parking spaces, as well as show the dimensions of the space. The spaces should be numbered to ensure the identification. The police will check the spot prior to issuing a permit, and if a car is parked there the application will be rejected.
10. Police Parking Application Approval – This is a four-page carbon application on which all the details regarding the car parking space address, dimensions, etc. must be written. Only the first page needs to be completed, however all four copies must be signed individually.
11. Optional Liability Insurance Application Form – This is optional but highly recommended, as the CALI/JCI has minimal coverage.

Final Steps Once all the above documents are ready, #s 7, 8, 9, and 10 need to be taken to the local police station to apply for a permit. It takes approximately five business days, and costs around 2,000yen to make the application. It costs another 500yen to collect the parking permit.

The final step is to drive the car to the local Land Transport Office (Rikunkyoku) to have the car transferred into your name.

Selling a Car in Japan

LeaseJapan can also assist with the selling of your car on your return home. Although the onus of transferring ownership of a car falls on the buyer, there are several steps the seller will need to follow in order for the buyer to complete the process properly, and thereby assure a smooth transfer of ownership.

Total English Assistance from Start to Finish

LeaseJapan can assist with both the purchasing (new or used) and selling of a car. Some of the steps we will assist you with can include the following:

1. We can organize a tour of various car dealers (for new car purchases);
2. (For new car purchases) Negotiation of the price with various car dealers. The details of these estimates will then be forwarded to you, where you can confirm the price before the order is placed by LeaseJapan on your behalf.
3. Translation assistance with all financial payments, completing official application forms and registration forms required with purchasing a car.
4. Organizing and Requesting a Parking Certificate.
5. Assistance with the registration of the car. This will include organizing the number plate and the ‘Shakken’.
6. Translation assistance with the car delivery and explanation of car features.
7. Assistance taking out the appropriate car insurance.

If you would like more information about how LeaseJapan can assist you with your purchase or sale, and for a free quote, please contact LeaseJapan.

Yours Sincerely,

Bryce Conlan
Sales Manager
Lease Japan