Japan's used car market reached a record high of 5.32 trillion yen (equivalent to $34 billion) in 2025, an increase of 54.8% compared to five years earlier. This result comes from a recent survey by an automotive research institute under the Japan Automobile Dealers Association.
This growth is driven by two main factors: consumers' hesitation to buy second-hand goods has significantly declined, and new car prices have surged due to rising raw material costs. New car prices in Japan have increased by an average of 15-20% over the same period, prompting many to turn to used vehicles.
The survey also indicates that the supply of used cars has improved due to reduced demand for new cars during the recent economic downturn, creating favorable conditions for the used car market boom. The mini-car segment (engine displacement under 660cc) and hybrid cars led growth rates, with sales increases of 62% and 78%, respectively.
The market value of 5.32 trillion yen also reflects a shift in consumer habits, as buyers increasingly favor high-quality used models, especially vehicles aged 3-5 years and models known for durability such as the Toyota Prius, Honda Fit, and Nissan Note. The research institute forecasts that the market will continue to grow steadily in 2026, despite concerns over inflation and exchange rate fluctuations.
