Car Sharing and Rentals: Alternatives to Owning a Car in Japan

Owning a car in Japan comes with high hurdles like expensive parking, mandatory inspections (shaken), and heavy taxes. This guide explores the two best alternatives—traditional rentals for trips and car sharing for errands—comparing costs, license requirements, and how to navigate the systems as an expat.

Why Avoid Owning a Car?

Before diving into the alternatives, it is worth noting why ownership is often discouraged for short-to-medium-term residents.

• Parking Costs: In central Tokyo, a parking spot can easily cost ¥30,000 to ¥50,000 ($200–$350) per month.
• Shaken (Inspection): Every two years, cars must pass a rigorous inspection that typically costs between ¥100,000 and ¥200,000.
• Depreciation: Resale value for cars in Japan drops precipitously.

Unless you live in a rural area where a car is essential for daily life, renting or sharing is almost always cheaper.

Option 1: Traditional Car Rental (Rent-a-Car)

This is the standard model you are likely familiar with: you book a car for a specific number of days, pick it up at a counter, and return it with a full tank of gas.

When to Choose Rental

Traditional rentals are best for multi-day trips or family vacations. If you are planning a weekend getaway to Hakone or a week-long road trip around Hokkaido, this is your most economical option.

Requirements for Expats

The barrier to entry for rentals is low, which is why it is the go-to for tourists and new arrivals.

1. Passport: Essential for identification.
2. Valid Driver’s License:
   • Tourists/New Arrivals: An International Driving Permit (IDP) issued under the 1949 Geneva Convention. Note: Japan is strict about this. IDPs based on other conventions (like Vienna 1968) are not accepted.
   • Residents (1+ Year): You must have a Japanese Driver’s License. The IDP is only valid for your first year in Japan.
   • Exceptions: License holders from Switzerland, Germany, France, Belgium, Slovenia, and Monaco need a specialized Japanese translation (from JAF) combined with their original license, rather than an IDP.

Major Companies

• Toyota Rent a Car: The largest fleet and most locations. Reliable and English-friendly.
• Nippon Rent-A-Car: Often open 24 hours at major hubs.
• Times Car Rental: A major player often co-located with parking lots.
• Nissan Rent a Car: Good deals on electric vehicles (EVs) like the Nissan Leaf.

The “ETC Card” Hack

Japan’s expressways are expensive toll roads. Most locals use an ETC (Electronic Toll Collection) card to pass through toll gates automatically and receive discounts.

• Tip: When renting a car, always ask to rent an ETC card as well (usually ~300 yen + toll usage). Without it, you must pay cash at every gate, which is slower and more expensive.

If you are planning a trip out of the city, check out our list of Best Day Trips from Tokyo to see which destinations are best reached by car versus train.

Option 2: Car Sharing (The Game Changer)

Car sharing has exploded in popularity in Japan, transforming how locals handle errands. Instead of a counter and paperwork, you simply unlock a car parked in a neighborhood lot using an app or card.

When to Choose Car Sharing

Car sharing is ideal for short trips (15 minutes to 6 hours). It is perfect for:

• Grocery shopping (heavy bags).
• Picking up furniture or large items.
• Rainy days when you don’t want to walk to the station.
• Quick drives to places with poor train access.

The Major Players

1. Times Car Share: The undisputed king. You will see their yellow “Times” signs in parking lots everywhere. They have over 1.5 million members.
2. Careco: Often found in condo buildings and office centers. Slightly more upscale fleet.
3. Orix Car Share: A solid third option with competitive pricing.

The “Gas Included” Perk

One of the biggest advantages of car sharing over traditional rentals is that gas and insurance are usually included in the price.

• How to Refuel: There is a dedicated fuel card in the sun visor. You use this card at the gas station (e.g., ENEOS or Idemitsu) to pay. You don’t spend a yen of your own money.
• The Reward: Many services give you a 15-to-30-minute discount on your next ride if you refuel the car (taking it from 1/2 tank to full) as a thank you.

The Catch: Japanese License Required

Unlike traditional rentals, most car-sharing apps require a Japanese Driver’s License to register. They rarely accept IDPs. This makes car sharing a privilege reserved for long-term residents who have gone through the process of converting their license.

Cost Comparison: Rental vs. Sharing

Here is how the pricing structures typically break down.

Feature	Traditional Rental (e.g., Toyota)	Car Share (e.g., Times Car)
Commitment	Per rental	Monthly Membership (~¥880/mo)*
Minimum Time	Usually 6–12 hours	15 minutes
Rate Structure	Daily Rate (e.g., ¥7,000/day)	Time Rate (e.g., ¥220 / 15 mins)
Gas	You pay (Return full)	Included (Card provided)
Insurance	Extra daily fee (~¥1,100)	Included in time rate
Booking	Days/Weeks in advance	Seconds before (App)
Pickup	Counter (Business hours)	Parking Lot (24/7)
Distance Fee	None	Charged for long trips (>6 hours)

*Note: The monthly membership fee for car sharing is often credited back to you as usage credits. So if you drive for 1 hour a month, the membership is effectively free.

How to Use “Times Car Share” (Step-by-Step)

Since Times is the most ubiquitous service, here is a quick walkthrough of the user experience.

1. Join: Apply online. Upload photos of your Japanese license. Wait for your membership card (which looks like a credit card) to arrive in the mail.
2. Book: Open the app. Find a car near you. You can filter by car type (compact, SUV, van). Reserve it for a specific time slot (e.g., 2:00 PM to 4:00 PM).
3. Unlock: Arrive at the car. Touch your membership card to the sensor on the rear window. The doors click open.
4. Drive: The car key is inside the glovebox, tethered to a key cylinder. Turn it to “Start.”
   • Note: The parking lot usually has a yellow stand blocking the spot. Once you move the car, you must lower this stand manually (or it lowers automatically depending on the lot) so you can leave.
5. Return: Park the car back in the exact same spot. Put the key back in the glovebox cylinder. Exit the car. Touch your card to the rear window sensor to lock it.
6. Pay: The fee is automatically charged to your registered credit card.

Navigation and Driving Tips

The “Navi” is Your Friend

Almost every rental and share car in Japan comes with a GPS navigation system (Car Navi).

• Language: Many modern units can be switched to English.
• Phone Number Search: The easiest way to set a destination is to input the phone number of the location (restaurant, hotel, museum).
• Map Code: For scenic spots without phone numbers, use a “Map Code”—a string of digits you can find on travel websites.

Road Rules to Remember

• Left Side: Drive on the left, steering wheel is on the right.
• No Turn on Red: Unlike the US, you cannot turn left on a red light unless there is a specific green arrow signal.
• Stop Signs: Japanese stop signs are inverted red triangles that say 止まれ (Tomare). They are easy to miss if you are looking for an octagon.
• Zebra Crossings: Pedestrians have the absolute right of way. Police are strict about cars failing to stop for pedestrians at crosswalks.

For a broader look at managing finances for these services, check our article on Opening a Bank Account in Japan, as you will need a valid payment method for both rentals and car sharing memberships.

Conclusion

Deciding between renting and sharing comes down to your lifestyle.

• The Weekend Warrior: If you only drive once every few months for a trip to the mountains, stick to Traditional Rentals. You avoid monthly fees and can use your IDP.
• The Urban Resident: If you have a Japanese license and need a car for weekly grocery runs or spontaneous IKEA trips, Car Sharing is a lifestyle upgrade that saves you thousands of dollars compared to owning a vehicle.

Whichever you choose, driving in Japan opens up a side of the country that train-bound travelers never see—from the winding coastal roads of the Noto Peninsula to the hidden farm stands of rural Nagano.

Ready to plan your first road trip? Consider using your car to access some of the more remote locations mentioned in our guide on Cheap Travel in Japan: The Seishun 18 Ticket, where trains are infrequent and a car offers freedom.

References

Primary sources (official)

• Times Car Share: Official guide to usage, rates, and membership.https://share.timescar.jp/
• Toyota Rent a Car: Reservation portal and guide for foreign drivers.https://rent.toyota.co.jp/eng/
• JAF (Japan Automobile Federation): Traffic rules and license translation services.https://english.jaf.or.jp/

Other helpful sources

• Careco Car Sharing: Service overview and vehicle lineup.https://www.careco.jp/
• Metropolitan Police Department (Tokyo): Traffic rules for bicycles and automobiles.https://www.keishicho.metro.tokyo.lg.jp/multilingual/english/traffic/index.html

Disclaimer

The information provided in this article is for educational and informational purposes only and does not constitute legal or financial advice. Traffic laws, rental prices, and service terms in Japan are subject to change. Always verify the latest requirements for International Driving Permits and license conversions with your local embassy or the JAF.