Japan’s used car boom accelerates

May 07, 2026 (MLN): Japan’s used car market climbed to a record 5.32 trillion yen ($34 billion) in 2025, which marks a 54.8% increase from five years earlier, as more consumers turned to secondhand vehicles amid soaring prices for new cars and changing attitudes toward pre-owned goods.

The findings, released by an automobile research institute affiliated with Recruit Holdings Co., showed the average price of a used vehicle purchased over the past year rose to an all-time high of 1.75 million yen.

That represents an increase of 397,000 yen compared with 2020, APP reported.

By comparison, the average price of a new vehicle reached 3.5m yen.

The sharp rise reflects both higher manufacturing costs and shifting consumer behavior.

Growing acceptance of secondhand products, helped by the popularity of flea market and resale apps, has encouraged more buyers to consider used vehicles.

The survey found that nearly 40% of vehicles purchased in the past year were used cars.

Demand was especially strong for SUVs and hybrid models, driving up prices in those categories. The average price of a used SUV climbed 25.6%  from 2020 to 2.92m yen.

The market is expected to continue expanding as inflation pressures consumers to seek more affordable transportation options. Older and lower-cost mini vehicles are also becoming increasingly popular among budget-conscious buyers.

The survey was conducted in August 2025 and gathered responses from 10,268 people across Japan.

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