Kei Car - Financial Disadvantages

Financial Disadvantages

Due to the popularity of "light cars", there is a tax on the size of these vehicles called the Light Motor Vehicle Tax. The amount charged for the size of "Passenger Cars" (the largest of the three classifications recognized in Japan) is 7,200 yen (US$83.50), or 4,000 yen ($46.40) for commercial vehicles. Normally the car tax on "light cars" below 1,000 cc is 29,500 yen ($342), with passenger cars and trucks with a load carrying capacity of 1,000 kg or less is at 13,200 yen ($153). (Some local governments may charge even higher based on local regulations).

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