Why Japanese Cars Are So Affordable

Why Japanese Cars Are So Affordable
By Craig Miya

If youve ever wondered why theres so many Japanese cars in New Zealand then read on. In the beginning the importation of vehicles into New Zealand was a strictly regulated and reserved only to a selected few. The new car industry with its manufacture and assembly plants all throughout the country largely controlled the inward flow of imported vehicles which kept the prices of both used and new cars at a premium.

In 1989 the government deregulated imports licensing which swung open the gates for the flood of Japanese imports. Japan has a population of over 140 million and is the leading manufacture of motor vehicles in the world. To maintain a high level of domestic new car sales the government imposes strict regulations which encourage (more so forces) consumers to regularly purchase new cars.

In Japan all vehicles are governed by a vehicle certification process which is called shaken which is similar to a WOF. Depending on the age of the vehicle the owner must regularly up-date the shaken which is expensive and on average will costs the owner a couple of grand each time.

When a vehicle is purchased brand new, the shaken is valid for 3 years. After 3 years the next shaken update is valid for a further 2 years. When the vehicle is 5 year old, the shaken must now be updated every 12 months. imported cars in new zealand

Remembering that the shaken costs on average a couple of grand each time. This along with interest rates as low as 3% means that most consumers opt to trade their vehicles back into the dealer and up-date to a new car. This creates a surplus of used cars in Japan which are then exported to countries all over the world, including New Zealand. Japanese imported cars for sale in new zealand

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