We are all somewhat acquainted with cutting-edge Japanese technology, which continually positions the diminutive island nation at the vanguard of numerous engineering domains. Whether it's an aircraft or an automobile, they assert their dominance through diligence, drive, and ingenuity. Over the years, we've witnessed Japanese automotive titans such as Toyota, Honda, Nissan, and Mitsubishi engage in fierce competition with their European and North American counterparts. Across many regions globally, people depend on dependable Japanese pre-owned vehicles for their enduring performance, pleasant driving encounters, and, notably, their affordability.
In Asia and Africa, Japanese pre-owned cars reign supreme. Primarily, Japanese pre-owned cars are economical and exceptionally efficient. Maintenance is straightforward, and spare parts are readily accessible for all models. Numerous Asian and African nations are experiencing economic ascension, with a substantial portion of their populace requiring various vehicles for commercial or personal transportation needs. For the burgeoning middle-class populace, superior Japanese pre-owned cars emerge as the optimal choice.
Nevertheless, the question persists: what renders superior Japanese pre-owned cars more cost-effective than their counterparts? It might surprise you to learn that, in certain instances, Japanese cars offer superior suitability compared to their pricier counterparts. They craft top-tier vehicles without compromising on quality, while simultaneously ensuring affordability for a global audience. In many nations such as Botswana in Africa and Bangladesh in South Asia, cars manufactured by Japanese firms dominate the roads, commanding market shares of 80% or more. Let's delve into what makes superior Japanese pre-owned cars so economically accessible.
6 Reasons Why Japanese Used Cars Are Affordable
1. New car pricing in Japan
In all Asian countries combined, the pricing of new cars in Japan is the lowest. The underlying reason is the large economy of scale (Japan is the third largest economy in the world) which allows the manufacturers to sell their cars at a much lower price in the local market. Moreover, the Japanese are used to buy newer models whenever they arrive in the market.
So, they frequently change their cars and sell the old ones for cheap. Besides, Japan boasts one of the finest public transportation systems in the world with high-speed metro rail that links major economic hubs. So, many Japanese people prefer to own any personal means of transportation, to save time.
All these factors together forge a system where cars are sold at very low prices and eventually pile up the number of almost new or slightly used vehicles.
2. Frequency of releasing new models
Japanese automakers enjoy large technological superiority over their rivals and always come up with cutting-edge technologies and features. This has its advantages and disadvantages as well. Due to this trend, the Japanese are lucky to enjoy every new feature and technology before any other people in the world.
The automakers however release new cars with slight changes or a few new features that don’t make the previous models obsolete. And the Japanese are technology-savvy people who love to always use the most updated and upgraded cars. It is not unfamiliar to see that people selling their cars in mass for cheap, to buy new models just arrived in the market.
As a result, finding cars in an almost new condition is nothing new in Japan, where people would not be interested in investing in cars that have been used for only a few months or so. For the Japanese, once used, the cars are no more NEW, even with months of warranties left! So, only in Japan, you can find cars in good condition and with all the necessary features, lacking only some of the newest features.
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3. The cost of dumping
Well, if you are thinking that Japanese people just dump their cars, you are wrong. The costs of throwing away anything in Japan, starting from appliances to cars, come with an expense. You will have to pay for having your car picked up and bear other costs necessary with it.
So, you are losing it from both sides. Firstly, you are not getting anything for what invested not so long ago. Secondly, you are being saddled with additional costs that don’t even concern you. So rather than following this suit, the Japanese tend to sell their almost new cars at cheaper prices. The price may even be slashed to 50% or more of the original.
4. Harsh environmental policy
Aside from the driving habitsthat the world needs to learn, as an island nation, Japan has always championed the ideas of major environmental issues in major world platforms. The risks of increasing carbon emissions are a huge concern for Japan and neighboring countries. Domestically, the government has been following strict rules and policies to protect the environment. As a part of this, the government discourages the use of older vehicles.
Japanese car makers try their vehicles with new road maps to implement engines in a more environmentally friendly way. Additional taxes and compensations may be applied to vehicles that have crossed a certain lifespan. Above all, the so-called “shaken” test dictates whether a vehicle will be permitted to hit the road. This is one of many reasons for Japanese drivers to get rid of their cars and get new ones.
5. Low real depreciation value
The people of Eastern countries tend to take care of their possessions. So, it is no surprise to know that the Japanese maintain, wash, and service their cars very well. As a direct result, the car may get older and the price may fall, but the real depreciation value – that is in terms of quality – doesn’t decrease that much.
6. Right-hand drive
Japan is one of the few countries that drive on the left side of the road and use right-hand drive vehicles. This makes it more expensive and complicated to export Japanese used cars to countries with left-hand drive, reducing their demand and thus their prices.
