Best Kei Cars for Foreigners Who Plan to Live in Japan

Kei cars (Japanese micro cars under 660cc) offer a practical, budget-friendly option for foreign residents navigating Japan’s complex car ownership system. They’re easier to park, cheaper to insure, and exempt from some paperwork in select areas.
The Honda N-Box stands out as the top choice, but other popular options include the Suzuki Spacia (best hybrid kei car), Nissan Sakura (best electric), Daihatsu Tanto (best for families), and Mitsubishi eK Wagon (best budget model).

Getting to grips with Japan’s car ownership system can feel overwhelming, especially for foreigners unfamiliar with local rules, paperwork, and city driving constraints. From parking certificate requirements to strict size limits and ongoing maintenance, owning a vehicle in Japan can be confusing. Fortunately, kei cars (compact, city-friendly micro cars) offer an ideal solution. 

 

Kei cars (軽自動車 or keijidōsha) are compact, fuel-efficient vehicles built for Japan’s crowded cities. Their small size, low taxes, and easier parking make them ideal for city living. The Honda N-Box is widely considered the best kei car for foreigners, thanks to its roomy interior, strong safety ratings, and ease of use.

 

In this article, we’ll explore the step-by-step process for buying a kei car as a foreigner in Japan, monthly ownership costs, parking regulations, and more.

Quick Answer: What’s the best kei car for foreigners in Japan?

 

The Honda N-Box is considered as the best kei car for foreigners due to its spacious interior, top safety ratings, and user friendly features. 

What Are Kei Cars and Why They’re Perfect for Foreign Residents

Kei cars, or keijidōsha, are Japanese micro cars built for city living. By law, Kei cars must have engines no larger than 660cc and stay within strict size limits, typically under 3.4 meters long and 1.48 meters wide. 

While these cars are compact, they have been designed with affordability, and ease of use in mind.

For foreign residents in Japan, kei cars offer several benefits:

 

• Lower costs: Annual road tax ranges from just ¥5,000 to ¥10,800.
• Easier parking: Their size qualifies them for special “軽” (kei) parking spots and can exempt owners from needing a parking certificate in some areas.
• Simpler ownership: Insurance and inspection costs are much lower than standard vehicles.

Legal Benefits of Kei Cars for Non-Japanese Residents

A common question is whether foreigners can own kei cars in Japan. The answer is straightforward, yes, they can. To purchase a kei car, a valid residence card and proof of a local address will be required.

Owning a kei car comes with unique advantages that make the buying process significantly easier and more appealing for non-Japanese residents. Examples include:

• Lower taxes: Annual vehicle tax is just ¥5,000–¥10,800, compared to ¥25,000+ for regular cars.
• Insurance: Premiums are often 30–50% lower.
• Parking: In many areas, kei cars are exempt from the proof-of-parking certificate (shako shōmei).
• Dedicated parking: Kei-sized “軽” spaces are common and cheaper to rent.

Size Limitations and What They Mean for Daily Use

While Kei cars are small, that doesn’t mean they’re impractical. While the exterior appears compact, clever engineering has been used to maximize interior space.

For taller passengers (180cm+), headroom can be tight in some models, but some of the larger models of kei cars often provide impressive leg and seat space.

While kei cars aren’t designed for high speeds, they remain safe and stable at legal limits, making them suitable for highway use. 

Are kei cars too small for foreigners? 

Not at all. While kei cars are compact, they offer surprising comfort and usability, especially for city living. Many modern models, like the Honda N-Box or Suzuki Spacia, offer impressive headroom and legroom thanks to well designed interior layouts and boxy shapes that maximize space.

Their small footprint also means easier parking in tight city areas, lower fuel costs, and the ability to drive through narrow streets offer real advantages in large cities like Tokyo or Osaka. 

For taller foreigners, seating comfort can vary by model, but most high-roof kei cars provide plenty of space for daily use. 

Top 5 Best Kei Cars for Foreigners in 2025

Choosing the best kei car for foreigners means choosing features that matter most to expats in Japan such as spacious interiors, reliability, ease of use, dealership support (especially in English), and long-term value. Our top 5 list is based on a combination of expert reviews, ownership data, resale trends, and feedback from the foreign resident community across Japan.

1. Honda N-Box: The Top Choice for Foreign Residents

The Honda N-Box remains the clear leader in the kei car market, and the best kei car for foreigners in Japan. The N-Box is known for its spacious cabin, user-friendly layout, and solid build quality.

Why It’s #1

• Maximum interior space: One of the tallest kei cars on the market, making ideal for drivers over 180cm.
• Great driving visibility: The high driver seating position and large windows provide great visibility when driving.
• Reliable performance: Honda are known for their quality and reliability. The N-Box also offers smooth handling even on expressways.
• Wide dealer network: Strong support network nationwide, including English-speaking staff in metro areas.

Key Features

• Sliding rear doors for easy access
• Highway stability assist
• Advanced safety package (Honda SENSING)
• Fuel efficiency: 20–25 km/L depending on trim
• Smart entry and push-start options

Pricing

• New: ¥1.5M–¥2.5M
• Used: ¥800,000–¥1.5M

Pros

• Best-in-class cabin space
• Comfortable for tall drivers
• Strong resale value
• Family and commuter friendly

Cons

• Higher initial price than competitors
• Slightly less fuel-efficient than hybrid options

2. Suzuki Spacia: Best Hybrid Efficiency for City Driving

If fuel savings and eco-friendliness are a priority, the Suzuki Spacia might be the best option. This hybrid kei car offers fantastic mileage of up to 35 km/L.

Why its a popular choice

 

The Spacia comes with automatic sliding doors, a clean modern interior, and plenty of clever storage options to maximise the space. Compared to the N-Box, the Spacia is a little smaller inside, but offers better fuel economy and a slightly lower price.

Pros

• Excellent fuel efficiency
• Quiet, smooth hybrid drive
• Modern design and good tech

Cons

• Not ideal for tall drivers
• Smaller cargo space

3. Nissan Sakura: Revolutionary Electric Kei Car

If you’re interested in a fully electric Kei car, the Nissan Sakura is Japan’s first real electric kei car.

Why It’s a Game-Changer

The Sakura runs silently, has instant torque, and can be charged at home using a regular household outlet. A full charge takes about 8 hours and offers around 180 km of driving range, which is more than enough for most daily needs. In Japan, the average person in Japan drives about 370 km per month which shows how efficient the Sakura is.

It’s also eligible for government EV incentives, which can reduce the price significantly.

Quick Specs

• Range: ~180 km per charge
• Charging: 8 hours at home (regular outlet)
• Incentives: National and local EV rebates available
• Price (after incentives): ~¥2M–¥2.5M

Pros

• Fully electric and eco-friendly
• Quiet, smooth ride
• Low running and maintenance costs

Cons

• Limited range for long-distance trips
• Not ideal if you don’t have access to home charging

4. Daihatsu Tanto: Accessibility and Family-Friendly Features

For a more family-focused or mobility-friendly option, the Daihatsu Tanto is a great choice if you’re driving with kids, elderly passengers, or just want a bit more convenience.

Why It Stands Out

The Tanto has wide-opening sliding doors, a low step-in height, and a flat floor, making it easy for most groups of people to get in and out of. The rear seats slide and recline, and there’s a decent cargo space in the back for a kei car.

It’s not quite as flashy or premium as the N-Box or Spacia, but it’s very practical and easy to live with.

Quick Specs

• Fuel economy: 20–27 km/L
• Price: ¥1.2M–¥2.0M
• Standout features: low entry height, wide doors, roomy backseat

Pros

• Great for families or passengers with mobility issues
• Easy access and spacious cabin
• Versatile cargo space

Cons

• Less stylish than other models
• Not the quietest ride

5. Mitsubishi eK Wagon: Budget-Friendly Reliability

If you’re looking for a practical, affordable kei car, the Mitsubishi eK Wagon offers dependable performance at one of the lowest price points in the kei car market.

Why It’s Worth a Look

 

The eK Wagon is perfect for those on a budget or anyone buying their first car in Japan. It’s simple, easy to drive, and offers great basic comfort. 

It’s also relatively cheap to insure and maintain, which is attractive for foreigners staying in Japan long-term but want to keep costs down.

Quick Specs

• Fuel economy: 20–25 km/L
• Price (new): ¥1.1M–¥1.6M
• Price (used): ¥400k–¥1M

Pros

• Very affordable to buy and run
• Easy to drive and maintain
• Compact for city streets and parking

Cons

• Basic design and features
• Not as spacious as newer models

Complete Guide to Buying a Kei Car as a Foreigner in Japan

Buying a car in Japan can feel complicated, especially if you’re new to the country. This section is your step-by-step guide to buying a kei car as a foreigner.

 

This section will explain everything you need to know from legal requirements and paperwork to dealership tips and ownership costs

Essential Documents and Legal Requirements

If you’re a foreigner planning to buy a car in Japan, gathering the right documents is the first, and often most confusing step. Whether you’re purchasing a kei car or a standard vehicle, the requirements are strict, and tourist visa holders are not eligible and a valid Japanese-issued identification and a registered address is required.

1. Residence Card (Zairyu Card)

A valid Residence Card, which confirms your legal status, current address, and length of stay in Japan.

• Where to get it: Immigration Office (issued upon arrival or visa approval)
• Timeline: Already required for living in Japan
• Important: Make sure your address is up to date

2. Proof of Address (Certificate of Residence / Juminhyo)

A Juminhyo confirms your current address and is issued by your city or ward office. It must match the address shown on your other documents.

 

• Where: Local city or ward office
• Timeline: Same day or next business day

3. Japanese Driver’s License or International Driving Permit (IDP)

You’ll need either a Japanese license or an IDP issued under the 1949 Geneva Convention (valid for 1 year, not renewable). Some dealers may prefer a Japanese license for registration.

4. Registered Personal Seal (Inkan) and Inkan Certificate (Inkan Shomeisho)

Japan uses personal seals instead of signatures. You’ll need a Jitsuin (official seal) registered at your local municipal office, along with a certificate verifying its authenticity.

• Where: Municipal/ward office
• Timeline: Same day if seal already created
• Your inkan must match your name on your Residence Card exactly (including order and spacing)

5. Parking Certificate (Shako Shomeisho)

A Shako Shomeisho proves you have a parking space within 2km of your registered address.

• Where: Local police station (traffic division)
• Timeline: 3–7 business days
• Cost: Around ¥500 for kei cars; ¥2,700+ for standard vehicles
• Required Documents: Juminhyo, property owner’s consent, location map, vehicle details
• Kei car purchases may be exempt, however, it is best to check with your local authority

6. Japanese Bank Account

Necessary for payment, insurance, and financing. Most dealerships require one to complete the purchase process.

7. Certificate of Employment (If Financing)

Only needed if you’re applying for a car loan. It proves stable income and visa eligibility. Not required for cash or rental purchases.

The Parking Certificate (Shako Shomeisho) Explained

One of the biggest hurdles when buying a car in Japan, especially for foreigners is obtaining a Parking Certificate, known in Japanese as the Shako Shomeisho (車庫証明書). Without this certificate, you typically cannot register a car, regardless of whether it’s new or used.

The Shako Shomeisho proves that you have access to a legal, dedicated parking space within 2 kilometers of your registered address. This requirement helps prevent street congestion and illegal parking, especially in cities.

Is the Shako Shomeisho always required?

• For standard (white plate) vehicles, it’s mandatory almost everywhere.
• For kei cars (yellow plate), some rural or designated urban zones offer exemptions, but you must check with your local police station before skipping this step.

Step-by-Step: How to Get a Parking Certificate

1. Obtain a parking space: Rent or purchase a space within 2 km of your home. For those who rent a space, a signed Certificate of Consent (使用承諾証明書) from the landlord is required.
2. Gather required documents
   • Juminhyo (Residence Certificate)
   • Property owner’s consent
   • Hand-drawn or printed map showing location
   • Vehicle info (if already selected)
3. Apply for the Shako Shomeisho at your local police station (traffic division) with your documents.
4. Pay the fees
   • Kei cars: Around ¥500
   • Standard cars: Around ¥2,000–¥2,700
5. The police may inspect the space to confirm it’s real, accessible, and large enough for your vehicle.
6. Approval usually takes 3–7 business days, depending on your prefecture.

Common Reasons for Rejection

Parking certificate applications can be rejected for several reasons, often due to small but easily avoidable mistakes. Common issues include:

• The parking space is located too far from your registered address. The space must be within a 2-kilometer radius of your home, and this distance is strictly enforced.
• The parking area is too small for your vehicle. Even if it’s a legal space, the police may reject the application if the space dimensions don’t match the size of your car.
• The required documents are incomplete or incorrect. Missing forms, unsigned landlord consent letters, or outdated residence certificates can all cause your application to be denied.
• The map showing the parking space is unclear or inaccurate. If the police cannot easily identify the location or verify access during their inspection, the certificate may be refused.
• There is no formal agreement or proof of right to use the space. In cases where no written lease or owner’s consent is provided, the police may consider the parking arrangement invalid.

Where to Buy: Dealers vs Private Sales vs Auctions

When purchasing a car in Japan as a foreigner it’s important to choose the right method based on your length of stay, Japanese language ability, and the level of support needed. Below are the main options available for buying a car in Japan as a foreigner:

Dealerships (New and Used)

Japanese dealerships are the most reliable option, offering both brand-new and pre-owned vehicles. New car dealers usually focus on a specific manufacturer (e.g., Toyota, Nissan), while used car dealers carry a variety of makes and models.

The advantage of using a dealership is that the vehicles are properly inspected and usually come with a warranty. Many dealerships assist with registration, insurance, and paperwork. However, the prices of cars on sale at dealerships may be higher compared to private sales.

Some dealers, particularly in major cities like Tokyo, Nagoya, and Osaka, may have multilingual staff or English-language websites.

Online Car Marketplaces

Websites like Goo-net, CarSensor, and BeForward provide listings of cars for sale across Japan. These platforms allow you to filter by price, location, make, model, mileage, and condition. 

One important consideration is the potential language barrier, as some sites may be poorly translated, or not translated at all. Additionally, not all sellers offer delivery to other cities in Japan, and requirements such as registration and insurance may not be included in the sale.

Private Sales

Buying directly from a current car owner can sometimes save money, however while this may be cheaper, there are no guarantees/warranties or professional inspections provided by the seller.This means the buyer is responsible for transferring ownership and ensuring paperwork is correct.

Financing Options for Foreign Residents

When buying a car in Japan, financing offers a more flexible way to purchase a kei car in Japan. However, financing as a non-Japanese resident comes with additional requirements, from visa restrictions to credit history.

1. Cash Purchase: Simple and Hassle-Free

Paying in full with cash is the simplest and fastest way to buy a car in Japan. There are no loan applications, no guarantors, and no interest payments. This method is particularly suitable for used kei cars or lower-priced vehicles where the total cost is manageable.

However, buyers should ensure they’ve budgeted not only for the car’s sticker price but also for additional expenses such as registration fees, insurance, weight tax, and optional voluntary insurance. 

2. Dealer Financing: Most Accessible for Expats

Dealer financing is often the most straightforward option for foreigners. Many dealerships, especially those familiar with expat customers, offer installment plans through in-house or third-party lenders. These plans are designed to be easier and less complex for foreigners to apply for.

Typical requirements include:

• A valid Residence Card with at least 1–3 years of validity
• Proof of steady income (e.g., three months of payslips or recent tax returns)
• A Japanese bank account
• Certificate of Employment or a formal job offer
• In some cases, a Japanese guarantor may be required

Loan terms generally range from 24 to 60 months, with average interest rates between 3% and 7%, depending on your creditworthiness and the lender’s conditions. Some larger dealerships offer English-language support and document handling.

3. Bank Loans: Better Rates, More Restrictions

For those who have been in Japan for a longer period of time, applying for a car loan directly from a Japanese bank may provide lower interest rates. However, these loans tend to come with stricter eligibility requirements. Most banks require:

• A long-term visa (or permanent residency)
• Strong employment and income history
• Japanese language ability
• A Japanese guarantor
• A clean, established credit history in Japan

Common Financing Challenges for Foreign Residents

Foreign buyers may be rejected for financing for a variety of reasons. The most common include:

• Holding a short-term or soon-to-expire visa
• Insufficient or unstable income (freelance or newly employed)
• Lack of a Japanese credit record or guarantor
• Incomplete documentation, particularly proof of employment or residence

These issues are especially common among first-year expats, recent arrivals, and self-employed professionals.

Building Credit as a Foreigner in Japan

If you’re planning to stay in Japan for several years, it’s a good idea to start building credit early. 

The following can help develop a solid credit history:

• Apply for a credit card with your bank and use it regularly but responsibly
• Register utilities, phone plans, and internet contracts in your own name
• Maintain consistent employment and tax payment history

True Cost of Owning a Kei Car in Japan: Complete Breakdown

“How much does it cost to own a car in Japan” is one of the most popular questions among expats in Japan. Kei cars (軽自動車) offer one of the most affordable options for car ownership. Designed for easily navigating the big, congested and narrow streets of Japan’s cities, Kei cars are a popular choice. But while the sticker price might seem low, the true cost includes far more than just the purchase.

Purchase Costs: New vs Used Pricing Guide

When purchasing a kei car in Japan, price varies significantly depending on whether you buy new or used. Here’s a breakdown of typical costs for popular models:

 

Model	New Price (¥)	Used Price (¥)
Honda N-Box	¥1,500,000–¥2,000,000	¥500,000–¥1,000,000
Suzuki Alto	¥1,000,000–¥1,300,000	¥300,000–¥800,000
Daihatsu Move	¥1,200,000–¥1,600,000	¥400,000–¥900,000
Nissan Dayz	¥1,300,000–¥1,700,000	¥450,000–¥950,000

 

Additional upfront costs that purchasers should be aware of include:

• Registration and number plate fees: ¥30,000–¥60,000
• Compulsory insurance (JCI): ¥25,000 (paid at time of purchase)
• Optional warranty or dealer service package: ¥20,000–¥100,000
• Recycling fee: ¥7,000–¥10,000

Kei cars typically hold their value reasonably well for the first 3–4 years, however, the resale value tends to drop significantly after the first Shaken (inspection at 3 years for new cars). Buying slightly used (1–2 years old) often gives the best value.

Annual Ownership Costs Breakdown

While kei cars are Japan’s most affordable vehicle class, there are still several recurring costs to budget for each year:

 

Expense	Low Estimate	High Estimate
Taxes	¥8,000	¥11,000
Insurance	¥30,000	¥80,000
Parking	¥60,000	¥180,000
Maintenance	¥20,000	¥40,000
Fuel	¥60,000	¥70,000
Total	¥178,000	¥381,000

 

The monthly cost of owning a kei car in Japan typically ranges from between ¥15,000 to ¥32,000, depending on your region and insurance.

This is significantly lower when compared to standard vehicles,which can easily exceed ¥50,000–¥70,000/month in urban areas. 

The Shaken Inspection: What Foreign Owners Need to Know

Shaken (車検) is Japan’s mandatory vehicle inspection system. For regular vehicles a Shaken Inspection is a mandatory requirement every two years to ensure road safety and environmental compliance. However, for new kei cars, the first shaken is due after three years, and then every two years thereafter.

What’s included in shaken:

• Safety checks (brakes, lights, tires)
• Emissions inspection
• Suspension and undercarriage review
• Fluid levels and leaks
• Mandatory insurance renewal (JCI)
• Weight tax payment

Typical shaken costs:

• Dealerships: ¥120,000–¥200,000
• Independent garages: ¥80,000–¥150,000
• DIY + inspection center: ¥60,000–¥90,000 (not recommended for first-timers)

Budgeting ¥100,000/year for shaken (when averaged over two years) is a safe estimate for kei car owners.

Common reasons for failure:

• Worn tires
• Faulty headlights or brake lights
• Oil leaks
• Modified or aftermarket parts not up to code

Tips to reduce costs:

• Book well in advance (some shops offer discounts for booking early)
• Get a pre-inspection to identify issues before formal shaken
• Use a bilingual or expat-friendly garage (especially in Tokyo, Nagoya, Osaka)

Vehicles with valid shaken and a clean inspection history will often have a higher resale value and are easier to sell domestically.

City-Specific Considerations for Kei Car Ownership

While kei cars offer affordability and efficiency, where you live in Japan can significantly impact the practicality and cost of ownership. Japan’s geography varies significantly, ranging from megacities to small regional towns.

In major cities like Tokyo or Osaka, narrow streets and expensive parking means that owning a kei car can offer clear advantages over larger vehicles. Meanwhile, in regional towns and cities or rural areas, owning a kei car can be advantageous for commuting or weekend travel. 

Tokyo: Urban Challenges and Solutions

Owning a car in Tokyo can be a challenge. Tokyo is known for its narrow roads, high parking costs, and limited space. In such a situation a Kei car can be a practical options.

Challenges in Tokyo:

• Narrow roads (<4m): Especially common in residential neighborhoods like Nakano, Setagaya, and Koenji. Kei cars, with their compact width and short turning radius, are often the only feasible option.
• High parking fees: Monthly costs range from:
  • ¥40,000–¥50,000 in central wards like Minato, Chiyoda, Shibuya
  • ¥25,000–¥35,000 in outer wards like Itabashi, Adachi
  • ¥15,000–¥25,000 in suburban areas like Hachioji or Machida
• Traffic congestion: Central Tokyo experiences frequent gridlock, especially during commuting hours. Short trips often take longer than trains or subways.

Advantages:

• Designated “軽” parking: Many apartment buildings and municipal lots have small, discounted parking spaces specifically for kei cars.
• Short-distance convenience: Ideal for errands, school runs, or weekend escapes to nearby spots like Okutama or Chiba.
• Car-sharing alternatives: Services like Times Car Share or Anyca offer flexible options if full-time ownership feels excessive.

Where kei cars excel:

• Suburban neighborhoods (Kichijoji, Musashino, Tachikawa)
• Family areas with public parking spaces and limited rail access

Where they struggle:

• Densely packed business districts and luxury residential areas without private parking

Osaka: Industrial City Practicality

Osaka is known as a more car-friendly environment than Tokyo, particularly for those living outside the city center. With lower parking costs and a more relaxed driving culture, kei cars are a popular choice among both locals and expats.

Key benefits:

• Lower parking costs:
  • Central wards (Nishi, Kita, Chuo): ¥20,000–¥30,000/month
  • Suburban areas (Suita, Higashi-Osaka, Sakai): ¥10,000–¥20,000/month
• Wider roads: Compared to Tokyo, Osaka has more spacious urban layouts, making it easier to maneuver and park.
• Kansai culture: Driving is slightly more aggressive than in Kanto, but car ownership is more normalized, especially for families or those with longer commutes.

Comparison to Tokyo:

 

Aspect	Tokyo	Osaka
Parking Cost	¥40,000+ (central)	¥20,000–¥30,000
Road Size	Narrow	Moderate
Cultural reliance on cars	Low	Moderate

 

Regional Cities: Where Kei Cars Really Shine

In Japan’s mid-sized cities and rural towns, Kei cars offer the most advantages. For expats working in education, tech, or manufacturing hubs outside Tokyo and Osaka, Kei cars offer the most practical and cost-effective way to get around.

Top regional cities for kei car ownership:

• Fukuoka: Compact city layout with spacious roads, affordable parking (~¥5,000–¥10,000/month), and plenty of suburban residential areas
• Sendai: Excellent road infrastructure and low congestion, with easy weekend escapes to Tohoku’s natural parks
• Hiroshima: Walkable central city but public transport becomes limited in the outer districts.
• Sapporo and Northern Japan:
  • Kei cars with 4WD are common for winter driving
  • Snow tires and cold-weather maintenance are essential
  • Despite snow, parking is more available and cheaper than in major cities

Estimated monthly ownership cost in regional cities:

 

Cost Item	Typical Range
Parking	¥3,000–¥10,000
Fuel	¥5,000–¥7,000
Insurance & Taxes	¥4,000–¥8,000
Maintenance	¥2,000–¥5,000
Total	¥14,000–¥30,000/month

 

Common Mistakes Foreign Kei Car Owners Make (And How to Avoid Them)

Buying a kei car in Japan can be a great option for foreigners living in Japan who are looking for a convenient and economical car. However, for many foreigners, especially those who are new to Japan’s car ownership system, it’s easy to face unexpected costs and complications.

From confusing parking regulations to underestimating the true cost of ownership, expat forums are full of stories from people who wish they’d known more before jumping in. In this section, we’ll cover the most common mistakes foreigners make when buying a car in Japan, particularly kei cars, and how to avoid them. 

Skipping the Parking Certificate Research

One of the biggest mistakes foreigners make when buying a kei car in Japan is not preparing the research and application process for the parking certificate (Shako Shomeisho (車庫証明書). Without this document, you can’t register your car, and in most urban areas, you can’t even complete the purchase.

Why this happens:

• Many newcomers assume parking comes with their apartment as part of the rental agreement (it often doesn’t).
• Landlords may require additional documentation or fees for certifying the space.
• Some neighborhoods have stricter enforcement especially in central Tokyo, Osaka, and Yokohama.

How to avoid it:

1. Check your building: Confirm with the landlord or real estate agent whether parking is available, and if it qualifies for a Shako certificate.
2. To get a space first, you’ll need:
   • A lease or rental agreement for the parking space
   • A site map showing proximity to your residence (within 2km)
   • Certification from the parking space owner
3. Plan for the timeline: The process takes 5–7 business days at the local police station.
4. Cost considerations: Expect to pay ¥2,000–¥3,000 for the certificate, plus parking lease fees.

Underestimating Total Ownership Costs

Another common mistake is assuming that owning a kei car is cheap simply because the purchase price is low. While kei cars are more affordable than regular vehicles, many foreign owners fail to budget for the ongoing and hidden costs.

Key ownership costs often overlooked:

• Shaken inspection: ¥100,000–¥200,000 every 2 years
• Parking: ¥5,000–¥40,000/month depending on city
• Voluntary insurance: ¥30,000–¥80,000/year
• Maintenance and repairs: Tires, brakes, battery replacements
• Fuel and tolls: While fuel-efficient, costs add up with regular use

Choosing the Wrong Model for Your Needs

A common issue for foreign buyers is choosing a kei car based on style or price, without thinking about long-term usability or comfort. Whether it’s buying a model that’s too small for family life or ignoring essential features, the wrong choice can be uncomfortable.

Frequent mistakes made when choosing a kei car:

• Too small for family or real life needs
• Lack of height clearance in underground garages
• Limited cargo space for work gear, groceries, or travel
• Poor resale value for niche models with limited demand

When looking to buy a Key car, the following should be considered:

1. Define your primary use case:
   • Daily commuting? → Look for fuel efficiency, easy parking
   • Family? → Prioritize interior space, sliding doors
   • Regional travel? → Seek 4WD, better ride comfort
2. Test drive at least 2–3 models
   
3. Think ahead:
   • Would it be easy to sell or trade? Popular models (e.g. Honda N-Box, Daihatsu Tanto) retain better value than limited-edition or niche styles

Insurance Guide for Foreign Kei Car Owners

Car insurance in Japan can be confusing, especially if you’re a foreign resident with limited Japanese ability. Japan uses a dual-layer insurance system that combines mandatory government coverage with optional private plans. 

This section breaks down the two major types of insurance (compulsory vs voluntary), outlines the real costs involved, and recommends insurers with English-speaking support. 

Mandatory vs Optional Coverage Explained

In Japan, all vehicles, including kei cars, must have Compulsory Automobile Liability Insurance, known as Jibaiseki Hoken (自賠責保険). However, Compulsory Automobile Liability Insurance only offers only basic coverage, and most car owners also take out Voluntary Insurance, known as Ninni Hoken (任意保険) to increase their protection.

Jibaiseki Hoken or 自賠責保険 (Compulsory Insurance)

• Coverage: Bodily injury or death caused to others (e.g., pedestrians, passengers)
• Exclusions: No coverage for property damage, vehicle repairs, or injuries to the driver
• Payout limits:
  • Death: up to ¥30 million
  • Severe injury: up to ¥40 million
  • Minor injuries: up to ¥1.2 million
• Cost: ~¥25,000 for two years (included during shaken or vehicle registration)

Ninni Hoken or 任意保険 (Voluntary Insurance)

Voluntary policies offer extra protection and will cover:

• Third-party property damage (e.g., hitting another car or a wall)
• Personal injury to you and your passengers
• Vehicle damage (your own car)
• Natural disasters, theft, and vandalism (depends on plan)
• Legal fees and roadside assistance

Typical kei car costs voluntary insurance as as follows:

 

Driver Type	Annual Premium (¥)
Experienced (no accidents)	¥30,000–¥50,000
New driver or expat with limited history	¥60,000–¥100,000+

 

How much you pay for car insurance in Japan depends on several key factors, not just your car, but also your background, location, and how you plan to use the vehicle. Insurers assess risk based on personal and practical details, which can lead to different premiums from one driver to the next.

• Age and driving history (foreign licenses may require higher premiums)
• Where you live (Tokyo rates are higher than regional areas)
• Vehicle model and use case (business, family, occasional driving)
• Coverage limits and add-ons (e.g., rental car coverage)

Many foreigners wrongly assume the required insurance is “full coverage.” But if you rear-end another car or damage property, jibaiseki won’t cover you, leaving you liable for millions of yen in damages. 

Best Insurance Companies for English Speakers

For foreign kei car owners in Japan, finding the right insurer is often decided by the level of available language support. In Japan, there are several providers that offer English-language services for expats, making it easier to compare plans, file claims, and manage renewals.

Here are some of the top insurance companies recommended for English-speaking drivers:

1. AIG Japan

• English support: Yes (dedicated expat service line)
• Policy types: Full suite of car insurance, including comprehensive and third-party
• Claims: 24/7 bilingual claims hotline
• Online access: Available with English interface

Pros:

• Strong reputation with international clients
• Streamlined claims process for foreigners
• Transparent documentation

Cons:

• Slightly higher premiums for new expat drivers

2. Tokio Marine & Nichido

• English support: Limited but available via specific agents and partnerships
• Policy types: Comprehensive voluntary coverage with flexible add-ons
• Claims: Mixed experience, better via English-speaking brokers
• Online access: Limited English content, most contracts in Japanese
  

Pros:

• Long-established insurer in Japan
• Discounts for long-term customers or no-claims history

Cons:

• Language barriers if not using a broker
• Slower claim processing for non-native speakers

3. InterGlobal / Global Insurance Japan (Broker)

• English support: 100% English-speaking service
• Approach: Independent broker matching foreign clients with insurers like Sompo, Mitsui Sumitomo, and Aioi Nissay Dowa
• Custom plans: Tailored to expats with clear terms and assistance

Pros:

• One-stop-shop for expat-friendly plans
• Personalised service and claims assistance
• Email/phone support in English

Cons:

• Broker fees will be built into pricing

Applying for car insurance in Japan can be straightforward, if you know what to prepare and what to look out for. Here are some practical tips to help you get the right coverage:

 

• Properly prepare your documents: Most insurers will require your residence card (or alien registration card), a valid Japanese driver’s license or an accepted international license, and proof of address.
• Work with a bilingual broker or English-speaking agent: Insurance documents in Japan can be full of legal terms and fine print. An agent who speaks English, or specializes in helping foreigners, can guide you through the policy, explain your options clearly, and help you avoid costly misunderstandings.
• Pay attention to deductibles and exclusions: Not all policies are the same. Be sure to check how much you’ll be liable for as a personal deduction in the event of an accident and what scenarios might not be covered at all. These details often hide in the small print, so make sure you read everything properly.
• Look beyond price: The cheapest policy isn’t always the best. Search for real user reviews, ideally from other expats, to see how well the insurer handles claims. A company with poor customer service or slow payouts can turn an accident into a much bigger hassle than it needs to be.

Maintenance and Repairs: Keeping Your Kei Car Running

Kei cars are known for their efficiency and reliability, but like any vehicle, they require regular maintenance. 

This section focuses on helping non-Japanese speakers understand the typical service schedule, the importance of preventive care, and how to find mechanics or garages that can support you in English. 

Finding Foreign-Friendly Service Centers

Finding a mechanic in Japan can be intimidating if you don’t speak Japanese, but it is possible, especially in larger cities or through well-known chains. 

Whether you’re looking for basic services like oil changes or need help navigating your first shaken inspection, these are the most popular options in Japan:

1. Major national chains with partial English support:
   • Yellow Hat (イエローハット): Offers oil changes, tire services, battery replacement, inspections. Some locations near expat-heavy areas have staff who speak basic English or will use translation apps.
   • Autobacs (オートバックス): Similar services with easy-to-navigate branches and online bookings. Some Tokyo, Yokohama, and Osaka branches have English signage.
   • UpGarage (アップガレージ): Specializes in used parts and DIY support—popular for budget-conscious expats.
2. Dealerships:
   If you bought your kei car through a dealership (e.g. Honda, Suzuki), they often offer high-quality service and may assist with English documentation or have bilingual staff.

In Tokyo, Yokohama, Osaka, Nagoya, and Fukuoka, English-speaking staff or foreign-friendly shops are more common. In smaller towns, English speaking services may be harder to find and you may need to use Google Translate, Papago, or have a Japanese-speaking friend assist.

When it’s time to service your car, knowing what to avoid is just as important as knowing where to go. Not every shop will have your best interests in mind, especially if you’re unfamiliar with how things work in Japan. Here are some common red flags to watch for when choosing a service provide:

• Refusing to give written estimates
• Shops that push unnecessary add-ons
• No clear warranty on work performed
• Poor online reviews from foreign customers

Verification tips:

• Ask if they provide shaken services and warranty documentation
• Request a printout of service details and parts replaced
• Look for JAF-certified (Japan Automobile Federation) partnerships

Seasonal Maintenance Requirements

Japan’s changing seasons and extreme weather differences mean seasonal maintenance is a must, something that often catches foreign car owners off guard. From icy winters in the north to typhoon season in the summer, preparing your kei car for weather extremes is critical to safety and performance.

Here’s a breakdown of Japan-specific seasonal maintenance needs:

1. Winter (December–March):

• Tire changes: Snow tires (スタッドレスタイヤ / studless) are required or strongly recommended in northern Japan (Hokkaido, Tohoku, Nagano) and even parts of Kanto during heavy snow.
• Costs:
  • New snow tires: ¥25,000–¥40,000/set
  • Mounting: ¥5,000–¥10,000
  • Storage service (if space is limited): ¥5,000–¥8,000/season
• Battery check: Batteries fail more often in cold weather; test and replace if needed.
• Wiper fluid: Replace with winter-rated solution to prevent freezing.

2. Typhoon Season (June–September):

• Windshield wipers: Replace if worn, visibility during typhoons is essential.
• Tire tread check: Good tread helps reduce hydroplaning on wet roads.
• Seal checks: Inspect door seals to prevent water leaks.
• Parking safety: If you park outside, consider car covers with tie-downs or move to sheltered lots during storm warnings.

3. Summer (July–August):

• Cooling system: Radiator fluid levels and A/C function should be checked. Overheating can occur, especially in traffic-heavy cities like Tokyo or Osaka.
• Cabin air filter: Helps prevent odors and keeps A/C running efficiently.
• Battery strain: A/C use puts added pressure on older batteries.

Resale and Exit Strategies for Departing Residents

Whether you’re relocating for work, finishing a teaching contract, or returning home permanently, planning your vehicle exit strategy is important. Waiting until the last minute can lead to steep losses, legal complications, or worse, abandoning the car and facing penalties.

Whether you plan to sell privately, trade in, or deregister the vehicle entirely, this guide ensures a smooth and compliant exit from kei car ownership in Japan.

Maximizing Resale Value

Getting the best price for your kei car when leaving Japan requires more than just listing it online. With the right preparation, timing, and presentation, you can significantly increase your resale value, especially in a competitive market like Tokyo or Osaka.

1. Maintain service records:
   Keep a log of all shaken inspections, oil changes, tire replacements, and repairs. Japanese buyers value documented maintenance, and a complete record can boost resale price by ¥20,000–¥50,000.
2. Time your sale properly:

• Avoid March–April: This peak relocation season floods the market with used cars, pushing down prices. Try selling between November and January for better demand.
• Start early: Begin advertising 6–8 weeks before departure to give time for negotiations and paperwork.

3. Clean and present well:

• Professional detailing (~¥5,000–¥10,000) can make your car stand out.
• Remove personal items, fix small scratches, and restore the interior to near-original condition.

4. Research fair pricing:

• Use platforms like Goo-net Exchange, Car Sensor, or Facebook Marketplace to check current listings.
• Consider a used car dealership appraisal as a guide for determining the pricing.

5. Kei car models with high resale value:

• Honda N-Box
• Daihatsu Tanto
• Suzuki Wagon R
• Subaru Stella

6. Factors that reduce resale value:

• High mileage: Cars with over 100,000 km see steep price drops.
• Visible rust or damage
• Aftermarket modifications (e.g. spoilers, tinted windows) may appeal to niche buyers but often reduce mainstream value.

Selling to another expat can streamline communication, but Japanese buyers usually offer better prices if paperwork and conditions are up to standard.

 

Required Paperwork for Car Sales

Selling a car in Japan can be a complex process. The deregistration process is tightly regulated, and if you leave the country without properly transferring ownership, you may remain legally and financially liable for the vehicle, even after departure.

Here’s a step-by-step breakdown of what you’ll need to do:

1. Required documents for selling your kei car:

• Inkan (personal seal) or signature (if you don’t use a registered seal)
• Inkan certificate (印鑑証明書) or residence certificate (住民票) issued within 3 months
• Shaken certificate (車検証) – proof of vehicle registration
• Parking certificate update (if changing locations)
• Car tax payment slip (軽自動車税納税証明書)
• Liability insurance certificate (自賠責保険証明書)
• Transfer of ownership form (譲渡証明書) – filled by both parties

2. Steps to sell privately or through a dealer:

1. Agree on the sale with buyer (expat or Japanese)
2. Submit paperwork to your local Transport Bureau (for kei cars, it’s usually the municipal office, not the national Land Transport Office)
3. Deregister or transfer ownership – this protects you from liability for future accidents or taxes
4. Cancel insurance after ownership transfer is confirmed
5. Receive refund for any unused voluntary insurance or overpaid vehicle tax

3. Timeline:

• Expect the full process to take 7–10 business days, assuming all documents are in order
• Start this process at least one month before your departure

 

4. If you leave Japan without selling the car:

• Your name stays on the title — any fines, taxes, or traffic violations will still be your responsibility
• Unregistered vehicles may be reported as abandoned, and you can face penalties, especially if your visa is tied to residency compliance
• Some municipalities pursue unpaid vehicle tax or shaken responsibilities even after your exit

Alternatives to Ownership: Car Sharing and Rentals

For foreign residents living in urban areas, dealing with high parking costs, short stays, or infrequent driving needs, car sharing or short-term rentals may offer a smarter and more flexible solution.

Car Sharing Services in Major Japanese Cities

Car sharing has become a popular and accessible alternative to car ownership in Japan, especially for people who need a vehicle occasionally but want to avoid insurance, shaken, and parking costs. Several providers are now available across Tokyo, Osaka, Kyoto and Fukuoka.

Here are some examples of the larger car share services in Japan for foreigners:

1. Times Car Plus (タイムズカーシェア)

• Coverage: Nationwide with over 12,000 stations
• Vehicle types: Mostly kei cars and compact sedans
• English support: No dedicated English app, but the system is intuitive; Google Translate works well for setup
• Pricing:
  • ¥220–¥330/15 minutes
  • Max ¥6,600/day for most kei cars
  • Fuel, insurance included
• Membership fee: ¥880/month, ¥1,650 sign-up (often waived with promotions)
• Reservation: Mobile app or website (Japanese only)

Pros:

• Ubiquitous in cities and near train stations
• Clean and regularly maintained vehicles
• 24/7 access with smart card or app

2. Orix Car Share

• Coverage: Broad national reach, especially strong in Kansai and Chubu regions. Offers hybrid kei cars and compact vans suitable for small groups or families.
• Pricing:
  • From ¥300/15 min
  • 6-hour use: ~¥3,800
• English support: Minimal; best used with translation apps
• Membership: ¥880/month; online application with residence card and credit card required

3. dCarshare (by NTT Docomo)

• Platform model: Aggregates multiple providers including Orix, Careco, and Nissan e-share
• App-based: Mobile app available in Japanese, use with in-app translation features
• Pay-as-you-go pricing: Depends on provider and car model
• Great for occasional drivers who want to compare multiple services

Cost comparison to ownership (monthly average):

Usage Type	Car Share	Kei Car Ownership
Occasional (2–3 hrs/week)	~¥5,000–¥10,000	¥20,000–¥35,000
Moderate (3–4 full days/month)	~¥15,000–¥20,000	¥25,000–¥45,000
Daily/commute	¥50,000+	More cost-effective to own

 

When Ownership Makes Sense vs Alternatives

Whether you should own a kei car or rely on car sharing comes down to how often you drive, where you live, and how long you plan to stay in Japan. 

 

Consideration	Car Sharing / Rental	Kei Car Ownership
Location	Central Tokyo, Osaka, or Yokohama	Regional cities or suburbs with low-cost or free parking
Usage Frequency	Driving fewer than 4 times per month	Driving several days per week
Parking Availability	Limited or no dedicated parking; small apartment living	Access to private or affordable long-term parking
Length of Stay	Short-term stay (less than 12–18 months)	Long-term stay (2+ years)
Lifestyle Preference	Prefer convenience and low administrative burden	Value long-term flexibility and convenience for frequent travel
Maintenance & Compliance	Avoid dealing with shaken, insurance, and regular maintenance	Comfortable managing ownership responsibilities
Family or Commuting Needs	No regular passengers; solo, occasional use	Family use, school/work commutes, or regular regional travel

Breakeven analysis example:

• Annual kei car ownership (insurance, taxes, parking, shaken): ¥300,000–¥500,000
• Car sharing (moderate use): ¥200,000–¥350,000
• Breakeven point: ~3+ uses per week favors ownership

Conclusion: Making the Right Choice for Your Japanese City Life

Owning a kei car in Japan offers great value for foreign residents seeking an affordable, compact, and convenient way to get around. 

When deciding whether to buy, rent, or share, consider your location, how often you plan to drive, budget, and length of stay:

• Budget-conscious or short-term residents in major cities may benefit most from car sharing or rentals as there is no need to worry about the Shaken inspection, insurance setup, and paperwork.
• Families, commuters, or long-term residents outside Tokyo or Osaka will find kei car ownership more kei car cost-effective in the long run, especially with access to free or affordable parking.

Still unsure what’s right for you? Explore real kei car listings, compare models, and get support tailored to foreigners at GenkiCars.jp, your one-stop platform for buying, selling, or learning more about kei cars in Japan.

Whether you’re staying for one year or five, the right car can transform your experience and with the right plan, it doesn’t have to be complicated or expensive.

Frequently Asked Questions

Thinking about buying or owning a kei car in Japan? Below are answers to some of the most common questions foreigners ask, relating to navigating Japanese laws, logistics, and vehicles.

Q: Can tourists buy kei cars in Japan?

No, tourists cannot legally buy and register a kei car in Japan. You need a valid residence card (在留カード) to register a vehicle, obtain insurance, and apply for a parking certificate (Shako Shomeisho). Without legal residency, you won’t be able to complete the necessary paperwork or get shaken inspections.

Alternative for short stays:
Tourists should consider car rentals or car sharing services like Times Car Plus, which are designed for short-term use and don’t require permanent address documentation.

Q: How long does it take to buy a kei car as a foreigner?

Typically, the process takes 2 to 4 weeks from selecting the vehicle to completing the registration. Here’s what to expect:

• Parking certificate application: 5–7 business days
• Insurance setup: 1–2 days (longer if using voluntary insurance)
• Registration paperwork: 3–5 business days
• Shaken & inspection (if required): 1–3 days

Factors that can delay the process:

• Missing documentation (e.g., residence card, inkan certificate)
• Lack of parking certificate (see Skipping the Parking Certificate Research)
• Buying from a private seller with no English support

Q: Do I need a guarantor to buy a kei car?

In most cases, a guarantor is not required just to buy a kei car, especially if you’re paying in cash. However, a guarantor may be necessary if:

• You are financing the car through a Japanese bank or dealership
• You don’t have a long-term residence history in Japan
• You’re applying for insurance with limited driving history

Alternatives:

• Use a co-signer if applying for a loan
• Choose a cash purchase to avoid credit checks altogether
• Some dealers specialize in selling to foreigners and will waive guarantor requirements

Q: Are kei cars safe on Japanese highways?

Yes, kei cars are legally allowed on highways, but there are limitations. These vehicles typically have small engines (660cc), which means:

• Acceleration is slower, especially uphill or when overtaking
• They perform best under 100 km/h, you can legally drive faster, but wind resistance and noise increase significantly
• In an accident, kei cars offer less structural protection than full-sized vehicles

Q: Can tall foreigners comfortably drive kei cars?

It depends on the model, but yes, many tall foreigners can comfortably drive kei cars, especially modern ones.

Height considerations:

• Honda N-Box, Daihatsu Tanto, and Suzuki Spacia are designed with tall roofs and adjustable seats
• Kei “tall wagon” types typically offer better legroom and head clearance than older boxy designs
• Taller drivers (190cm+) may want to avoid coupe-style kei cars or older models with fixed seats

Q: What happens to my kei car if I leave Japan suddenly?

If you leave Japan without selling, deregistering, or transferring ownership of your kei car, you remain legally responsible for the vehicle. That includes:

• Unpaid taxes
• Insurance liability
• Potential fines if the car is abandoned

Emergency exit options:

• Sell to a dealership or used car buyer on short notice
• Deregister and scrap the car at an authorized junkyard (you’ll receive a deregistration certificate)
• Assign power of attorney to a trusted friend or broker to handle the paperwork while you’re gone