> Note: I don't think this is a great system, and it's pretty obviously a hidden subsidy for the Japanese auto industry, but it does have the helpful side effect of ensuring that almost all cars on the road in Japan are fairly new and have the newest features
I dunno, I live in a province in Canada with no auto industry. We have an inspection every two years, license plate renewals every two years, mandatory insurance at all times. The costs end up being almost identical (I've owned a car in both places). The people I know who have had issues are mostly due to emissions and lack of maintenance - failing to fix a rusted out exhaust line, alignment out, rusted out body, etc. My car in Japan was 16 years old and passed with the minimum fees.
I do know lots of people in Japan who replaced their car just because it got a bit old, but it wasn't because it didn't pass inspection. It was because they thought it wouldn't pass.