Japan's Used Car Market Expands To Record 5.3 Trillion Yen In 2025

TOKYO, May 6 (Bernama-Kyodo) -- Japan's used car market hit a record high in 2025, surging 54.8 per cent 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 per cent 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 per cent from 2020.

"The size of the market will likely continue to expand," she said, adding that 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.

-- BERNAMA-KYODO