In 2023, the average purchase value for a used automobile in Japan was around 1.72 million Japanese yen, increasing from 1.57 million Japanese yen in 2022. The most commonly purchased price range for used cars was usually between 500 thousand and one million Japanese yen.
Outlooks for Japan’s used auto market
The recent trends have been encouraging; registrations of used cars indicate a vivid circulation, and the average value of used auto purchases hit a record high in 2022, despite prices briefly glitching in 2020. But the grain of salt is evident: mainly younger generations opt for used cars. Clients in their 20s and 30s contribute significantly to the market size as they spend more on their vehicles on top. It is, therefore, Japan’s demographic development that depresses market outlooks.
The used EV-market: small steps
Another issue in the automotive world is CASE (connected, autonomous, shared and service, and electrified vehicles). As the government pushes domestic dealers to substitute their lineup of new passenger cars with electrified models by 2035, this government policy would have implications for the used auto market once implemented. One result would be a larger supply of used electrics, whose market is currently in its infancy. Because used cars and commercial vehicles are not affected by the announced 2035 sales ban, EVs may remain a niche product in the used car market for longer than that.
