Japan is the major source of automobiles worldwide both for New and Used Cars & Vehicles. Japan Used Cars are known for their quality, durability, technology and trust. The question arises Why Japan Cars are so cheap? Please check the reasons for the low price used cars from Japan.
1. Cost of Owning and Licensing of used Cars in Japan:
First reason is cost of owning and licensing of used cars in Japan. The licensing system of Japan for used cars is one of the biggest reasons for cheap used cars from Japan. Once a Japanese car is three years old, it must undergo a rigorous Roadworthiness Inspection called Shaken which costs almost $1000. This makes owning a used car in Japan very costly.
2. New Car Prices are Lower in Japan:
Second reason on the list is new car pricing in Japan. The pricing of the new cars in Japan is the lowest as compared to the other countries worldwide. Moreover, the Japanese people buy newer models whenever they arrive in the market. So, they frequently change their cars and sell the old ones at Lower Prices.
3. Frequency of Releasing New models:
Third reason is frequency of releasing of New Models in Japan. Japanese automakers enjoy large technological superiority over their rivals and always come up with cutting edge technologies and features. And the Japanese are technology savvy people who love to always use the most updated and upgraded cars.
4. Cost of Dumping:
Fourth reason of the low prices of Japan used cars is cost of dumping. The costs of throwing away anything in Japan, starting from appliances to cars, come with an expense. So rather than following this suit, the Japanese tend to sell almost all of their new cars at cheaper prices. The price may even be slashed to 50% or more. Fifth reason of cheap prices of Japan used cars is that the Cost of Finance is Very low in Japan.
5. Low Finance Cast:
The interest rate for car finance for Japanese Cars is very low, owning new Japanese cars is more attractive relative to the running costs of used cars in Japan.