Japan’s used car market surged 54.8% to a record 5.32 trillion yen in 2025, driven by easing consumer resistance and rising new car costs.
TOKYO: Japan’s used car market hit a record high in 2025, surging 54.8% from five years earlier to 5.32 trillion yen (US$34 billion), as consumer resistance to second-hand goods waned and rising raw material costs pushed up prices for new vehicles, according to a recent survey by an automobile think tank, Kyodo News Agency reported.
The average price of a used vehicle purchased during the previous year also hit a record high of 1.75 million yen, up 397,000 yen from 2020, the research institute affiliated with staffing service group Recruit Holdings Co. found.
The average price of a new vehicle stood at 3.50 million yen.
“There are more people opting for pre-owned vehicles that are relatively new due to the increasingly widespread use of flea market apps,” said the institute’s Yoshiko Yokota.
Nearly 40% of automobiles purchased in the past year were used cars, according to the survey.
Prices of second-hand vehicles were being pushed up by strong demand for SUVs and hybrid vehicles, with SUVs costing an average 2.92 million yen, up 25.6% from 2020.
“The size of the market will likely continue to expand,” she said, adding there was a growing popularity for cheaper and older mini-vehicles amid prolonged inflation.
A total of 10,268 people across Japan were surveyed in August 2025.