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In all Asian countries combined, the pricing of new cars in Japan is the lowest. The underlying reason is the large economy of scale (Japan is the third largest economy in the world) which allows the manufacturers to sell their car at a much lower price in the local market. Moreover, the Japanese are used to buy newer models whenever they arrive in the market. So, they frequently change their cars and sell the old ones for cheap. Besides, Japan boasts one of the finest public transportation systems in the world with high-speed metro rail that links major economic hubs. So, many Japanese people prefer that to owning any personal means of transportation, to save time.
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Akiko Takizaki