August 26th, 2008Buying a Car In Japan - Option One: Nissan Tiida
Cars in Japan are so affordable. This was my thought as Reiko and I looked at the pristine models in the showroom of Gifu Nissan this past weekend where we started the search for our first family car.
In Canada, it’s quite normal to see one price, buy a car for another, then quickly discover that the *real* price is some third number that is anywhere from a few hundred to a few thousand dollars (cash) on top of what you were expecting to pay. Why the huge disconnect in Canada? Because tax is a deal killer. Because Freight and EDI are deal killers. Because delivery charges are deal killers. So, until you actually sign the contract saying you’ll buy a particular car, you have no idea how much it will actually cost, aside from the knowledge that it will be no less than $4000 more than the amount listed on the contract.
Thank God it doesn’t work like this in Japan.
Yellow Plate vs. White Plate
Japan, like most countries, has several different options when it comes to insuring a car. The main consideration that we’ve had over the last few weeks was whether we should get a Kei-Plate (car with a yellow licence plate), or a White Plate. With such a stark difference between the two kinds of offerings, I’ve been leaning towards the more expensive white plate, while Reiko has been considering the yellow.
The advantage of a yellow plate, aside from the 50% savings in car insurance, is that parking your car at a crowded shopping mall is quite simple. If there are no more “small car only” spaces, you can easily park under a normal-sized vehicle. The disadvantages of such a car, however, is that they are not the most comfortable for non-Asian passengers and the engines really don’t like going up mountains with more than 100 kg of combined passenger and cargo weight combined. While this might not be too much of a problem for people who often drive alone, or stay out of the mountains, it’s not something that would be too suitable for Reiko and I.
Interestingly enough, it didn’t take too much convincing to prove that a white plate would be superior to a yellow. Another disadvantage to the smaller Kei-type cars is that there is very little space between the driver and the door. This means that should the vehicle experience some sort of collision from the side, the passengers nearest the door would have very little protection or means of escape. This is not so with the larger cars.
The Nissan Note
One of the first cars that Reiko spotted in the Nissan showroom was the newest model of Note. This car has received quite the reception since Nissan introduced it not too long ago and, despite its relatively attractive appearance, it’s not something I’d want to invest the money in. This isn’t because of any safety reasons, or because of fuel efficiency, though. Instead, I have a problem with this car for the very same reason I have a problem with Toyota visually uninspired Vanguard: the commercials.
![](http://www.j2fi.net/wp-content/uploads/2008/08/gay_note.jpg "The \\"Very Happy\\" Nissan Note Men")
The Nissan Note sells itself on TV with the help of animated ‘toons who remind me quite a bit of the Dire Straits characters from the mid-80’s. However, rather than being cool, these super-feminine males are annoying and repulsive. Selling a car with the aid of these characters is about as appealing as sitting next to Gilbert Gottfried on an over-crowded AirMexico flight from Japan to San Francisco to Peru then back to Japan.
No, thank you.
The Nissan Tiida
From the moment I saw the dashboard, I knew this was the car that I would want to go home with. Naturally, the visit was just a “fact-finding mission”, but that’s beside the point. The Nissan Tiida has a very attractive dash, loads of features, and looks great in red. All the things a person like me could possibly hope for in a vehicle that’s not a Porsche 911 Boxter Turbo with the Premium Platinum Package. The seats could go back far enough for me to be comfortable while driving, and the trunk is large enough to hold almost everything we could possibly put in it for the time being. What I really like about the Tiida, aside from the dashboard, is the overall design of the car. Not too curvy, and not boring in the least.
For the last few years, Japanese cars seemed to have fallen into a bit of a rut. Regardless of whether it was a Toyota, Daihatsu, Suzuki, Nissan or Honday, they all looked the same. Then 2007 came along and things started changing. The 2009 Tiida that Reiko and I looked at looked and felt great. So much so that I wanted to take it out onto the highway to see if it could really push it up to 200 km/h. Unfortunately, this wasn’t possible.
The Bottom Line
There were lots of options that we considered with the car, but the only one Reiko and I had trouble with was the car navigation system. Do we want it? Can we go without it? Is it wise to drive around unfamiliar towns with paper maps that haven’t been updated in weeks when we could have the most current mapping information available for those three days a year when we actually need it? It wasn’t an easy decision.
To that end, we wound up getting two quotes on the Tiida. To get the model with the Car Navigation system (the Tiida E-ATx) it’s 1,885,962円. To get the model without the Car Navigation system (also a Tiida E-ATx) it’s 1,721,662円. That’s quite a difference in price.
To top things off, we were presented with the standard options to finance or not-quite-lease the car over a period of three years and, I must admit, the price was well within range of what we can currently afford to pay. That said, financing a car makes it awfully tempting to upgrade quite a few components while reassuring yourself that it’s “just a few thousand yen more each month.”
Reiko and I have yet to decide on which car to actually buy, and we still have a few more dealers to check out. We’ve both had our eyes on a Honda Fit, and I had the opportunity to ride in one back in Canada before moving to Japan. The ride was smooth, and there was plenty of room for three full-sized Caucasian males. Any car that can easily handle that much mass would be a good fit for a family that’s just starting out.
Have you bought a car in Japan? Is there anything I should keep a lookout for? I’d love to hear your comments.
External Links:
Nissan’s Tiida Page (Japanese)
Nissan’s Note Page (Japanese)
I bought my little yellow-plated Suzuki Wagon R for 350,000 yen total. It served me well for the last three years, but since it’s 11 years old now, I think I’ll get rid of it and use my wife’s even smaller, pink Lapin. Cars are such a drain on your finances. Just average out the monthly cost of gasoline, oil, tire-buying/changing, insurance, bi-annual service, parking, accessories, repairs and loan repayments. You do need a car out here in Gifu, but paying for it will really hamper your ability to save.
This is where QuickStudy comes in. Hopefully I’ll get the application converted to work on Japanese cell phones in the next few weeks, and then I’ll sell it for around 500 Yen, with free access to the basic and intermediate quiz files (I’m thinking of some premium ones that’ll be offered for 50-100 Yen). If only 40,000 in the country buy the application, that’ll pay for the Tiida outright!
Of course, I shouldn’t get my hopes up too much … it might not be possible to get into the Japanese keitai software market
I’m with Crazy Nick on this one. Cars are a total drain. I also don’t believe in buying something that you can’t pay for without financing. Unless you’re talking about a house of course, which is pretty much impossible to afford without a loan.
Anywho I don’t make a lot of money, yet financially I feel ok since I don’t have a car. Remember, a car and especially a new car is expensive in the following ways:
1. Depreciation - This is magnified by the fact that you live in Japan where cars lose their value faster. I mean in Canada you can buy a car, drive it off the lot and say goodbye to 15% or more!
2. Insurance - The bigger and newer the more expensive.
3. Maintenance - Sure a newer car isn’t going to cost as much in this department, but still…
4. Shaken - One more reason to go yellow plate!
5. Interest on Financing - Interest kills, even in Japan! and its a double whammy because you are paying it on something that actually keeps losing value! Ouch!
6. Gas. Ever notice how it never goes down. I’m gonna take a wild assumption and assume that this will continue…. in to eternity!
I dont know I could go on and on but yeah I’d say that if you need a car, get something used, in good condition and small… Your wallet will thank you for it later. On the odd time that a big fat Canadian friend comes to visit, well maybe then just rent a car… I know you want something big, and I know how small cars can be in Japan but I’m 6′3″, 190 lbs and even I fit in to a mazda roadster as well as many different yellow plate cars.
Remember its all about the money and the money you save now will make a big difference later. Don’t fall in to the trap of trying to keep up with the Jones’ or whatever…
Sorry if I’m sounding harsh but I’m just being honest. Put your money in to a house, financially responsible investments, or even a fancy dinner with the misses every once in a while. Not a money sucking ungrateful car!
Now if you’ll excuse me I have some sausages to eat!
I completely concurr with you on these, Mike. I’ve been able to get by for six years without a car. That said, Reiko and I currently give outside of the city, so doing something as necessary as groceries would be a major chore if we had to take the train to a station that’s relatively close to a food mart with decent prices. On top of this, if we plan on having any children in the near future, the last thing I’d want Reiko to have to deal with is using public transit to get around. I really feel for mothers who need to bring really young children onto the bus or train because it’s not easy to lug around all that extra “support equipment”.
I can get by using a train for the next few years without a problem. The biggest reason Reiko and I are looking at new cars, though, has to do with the future. As I had mentioned above, hopefully some of my software offerings can turn enough of a profit to make the purchase much easier. The last thing I want to do is get stuck in some kind of financing clause where I’m forced to pay for every kilometer driven past a certain amount. Heck, worse than that would be the case of getting into an accident with a car that’s not technically mine. I prefer to have tangible assets that depreciate, rather than fuzzy ones
Well I ain’t saying don’t buy a car, just buy one that you can easily afford. There are plenty of used cars in great condition in Japan and I reckon you can get a good deal on something a little older, and yellow plated.
Oh and if I were you I would invest in the GPS. Just buy an aftermarket one at Autobacs or Yellow Hat! Those things are totally worth it, especially in Japan!
Ya, we’re still considering used, as well as some other options. I have a friend that deals with used cars up in Tokyo, and he tells me that I can get a car for darn near cost so long as I don’t mind driving it back from the big city
Now that sounds like a plan!
Hmm… I don’t really agree with some of the others.. I say that if you need transportation, go ahead and get it on financing, but pay off the financing as quickly as possible (don’t be tempted to just drag out the financing because of a lower monthly payment).
Remember that cars have much lower resale value in Japan than back in Canada so factor that in when making your decision.
I ride a motorbike, and the cost of running it is far lower than I would pay in Canada (besides gasoline).
As for the GPS, you may want to consider a portable navi unit like the Sony NV-U2. Then if you have another car, or a motorcycle or whatever, you can use it on that too.
Resale isn’t something I’m too worried about, as I tend to use things until they just can’t be fixed. For GPS, our keitai’s have the function built in, but it’s not as helpful when driving. Perhaps the portable unit would be best.
I’d love to get a motorbike, but the Mrs. is quite against the idea. What kind of bike do you ride?
I ride an Aprilia Scarabeo. It’s a scooter but its wheels are big so it handles like a motorcycle. And it does seem to be more wife-approved than a lot of other bikes.