Unlike United States, if you live in downtown area even in suburban area, you do not need have a car to survive in Shanghai. Public transportation such as metro, bus, ferry are very plentiful and efficient. Even taxis are cheap compared to United States.

Of course you can get a car to drive. However driving in Shangahi can also be very stressful due to motorists flouting and the traffic regulations. The major problem is that there is plenty of cars. Traffic jam is a common problem during rushing hour in the morning 7.30-10am and 5-7pm. You will see lots of cars just move like ants in high expressway.

In order to curb the traffic jams and pollution, Shanghai has restricted the number of car license plates. The local government holds the sealed bid once a month since 1986, with a lofty goal of keeping the number of cars under control and curbing traffic congestion. You can buy GM (General Motors) or VW (Volkswagen) cars which are made in Shanghai with a comparable cheap price in US and Europe. However you can also get imported luxury cars such as Mercedes, BMW etc. Another option is to buy a second-hand car. You can contact with a local dealer for more information on the secondhand availability of the type of vehicles.

The costs of a car is relatively high in Shanghai which is not affordable for normal shanghai local family. Monthly maintenance, tolls and insurance comes to about US$3000 annually. The cost of a base license plate is about US$5000. Short-term and Long-term car leases are viable alternative to buy a car. The costs work out to be higher compared to buy a car. You need to prepare identity card, passport and local driver license, company business license and seal (if available). The refundable deposit will be US$1500 - 4000 depending on the car and length of rental period.

Parking fee will be higher in downtown area, like 10-15RMB per hour. It is not easy to find a free parking lot in downtown area because cars are plenty of.

How to convert a foreign driving license
Applicants will obtain a chinese driving license after passing a theoretical exam. Expense is about 155RMB. Besides exam, the foreigners will also need to provide valid passport, photocopy of the record for entering the country, original driver license, medical checkup etc. If you feel uncomfortable to drive in shanghai, you can hire an experienced local driver with the monthly salary 2000-3000RMB. The experience driver can help out running errands like taking the ayi shopping and picking kids from school, collecting you late at night.

Useful government organizations:

Shanghai Traffic Patrol Division
1101 North No.1 Zhongshan Road
Tel: 6516 8168 ext. 5332

Ministry of Automobiles
1101 North No.1 Zhongshan Road
Tel: 6516-8168 ext 54787

Medical Checkup for Driver License
179 Qinchun Road
Tel: 64987070-52480

update time：2012-2-9