A vehicle

Before you begin

Vehicle ownership in Shenzhen

Owning a vehicle in Shenzhen is more complex than in many other cities due to license plate restrictions. The city uses a lottery and auction system to control the number of vehicles, making license plates expensive and sometimes difficult to obtain.

Key challenges:

• License plate restrictions: Lottery and auction system
• High plate costs: Auction prices typically RMB 20,000-30,000+ (as of January 2025)
• Driver’s license conversion: Required before driving
• Ongoing costs: Insurance, maintenance, parking
• Traffic and parking: Can be challenging in busy areas

Prerequisites

Before purchasing a vehicle, you’ll need:

• Chinese driver’s license: Must convert or obtain Chinese license
• License plate: Through lottery or auction (most challenging part)
• Sufficient funds: Vehicle purchase + license plate + insurance + ongoing costs
• Parking space: Where to park the vehicle
• Valid visa/residence permit: Required for registration

Driver’s license conversion

Converting your home country license

Eligibility:

• Hold valid driver’s license from home country
• License must be current and not expired
• Some countries have reciprocal agreements (simpler process)
• Others require full driving test

Countries with reciprocal agreements:

• Some countries allow direct conversion with minimal testing
• Check current list with traffic management bureau
• Requirements may change

Countries without agreements:

• Must take full driving test (written and practical)
• More time-consuming process
• Study materials available in English

Conversion process

Step 1: Gather required documents

• Valid passport and visa/residence permit
• Original driver’s license from home country
• Translation of driver’s license (certified)
• Medical examination certificate
• Photos (specified size and format)
• Proof of residence in Shenzhen

Step 2: Apply at Traffic Management Bureau

• Visit Shenzhen Traffic Management Bureau (车管所)
• Submit application and documents
• Pay application fees
• Schedule tests if required

Step 3: Take tests (if required)

• Written test (may be available in English)
• Practical driving test
• Pass all required tests

Step 4: Receive Chinese license

• License issued upon successful completion
• Valid for specified period (typically 6 years, then renewable)

Processing time:

• Simple conversion: 1-2 weeks
• Full test process: 1-2 months
• Depends on country of origin and requirements

Costs (as of January 2025):

• Application fee: RMB 10-50
• Translation: RMB 100-300
• Medical exam: RMB 50-100
• Test fees: RMB 200-500 (if required)
• License fee: RMB 10-20

License plate system

Understanding the system

Shenzhen restricts vehicle registrations through a license plate allocation system to control traffic congestion and pollution.

Two methods:

1. Lottery (摇号)

• Free to enter
• Random selection
• Low probability of winning
• No cost if selected
• Monthly drawings

2. Auction (竞拍)

• Pay to participate
• Bid on available plates
• Higher probability of success
• Current average: RMB 20,000-30,000+ (as of January 2025)
• Monthly auctions

Participating in lottery

Eligibility:

• Hold Chinese driver’s license
• Meet residence requirements
• Not already own vehicle in Shenzhen
• Meet other eligibility criteria

Process:

1. Register for lottery online
2. Wait for monthly drawing
3. Check results
4. If selected, proceed with vehicle purchase and registration

Probability:

• Very low (varies by month and demand)
• May take months or years
• Free to participate
• Can continue entering each month

Participating in auction

Eligibility:

• Similar to lottery requirements
• Must have funds for bidding
• Meet financial requirements

Process:

1. Register for auction
2. Pay deposit (refundable if not successful)
3. Participate in bidding
4. Pay winning bid amount
5. Receive license plate allocation

Current costs (as of January 2025):

• Average auction price: RMB 20,000-30,000+
• Deposit: Typically RMB 2,000-5,000 (refundable)
• Auction fees: Additional fees may apply
• Prices fluctuate based on supply and demand

Tips:

• Research recent auction prices
• Set maximum bid limit
• Understand auction rules
• Be prepared to pay immediately if successful

Vehicle purchase

Where to buy

Authorized dealers:

• Brand dealerships
• New vehicles with warranty
• Professional service
• May assist with registration

Used car markets:

• Various used car markets in Shenzhen
• Wide selection
• Lower prices
• Verify condition and history

Online platforms:

• Various online car marketplaces
• Can browse and compare
• Arrange viewing and purchase
• Verify seller credibility

What to consider

Vehicle type:

• New vs. used: Cost vs. value
• Fuel type: Gasoline, electric, hybrid
• Size: Consider parking and usage needs
• Brand: Availability of service and parts

Price range (as of January 2025):

• Used cars: RMB 30,000-200,000+ (varies significantly)
• New economy cars: RMB 80,000-150,000+
• New mid-range: RMB 150,000-300,000+
• New luxury: RMB 300,000+

Additional considerations:

• Insurance costs
• Fuel efficiency
• Maintenance costs
• Resale value
• Service availability

Vehicle registration

Registration process

Required documents:

• Chinese driver’s license
• License plate allocation certificate
• Vehicle purchase documents
• Proof of insurance
• Proof of residence
• Passport and visa/residence permit

Process:

1. Obtain license plate (lottery or auction)
2. Purchase vehicle
3. Purchase insurance (mandatory)
4. Submit registration application
5. Pay registration fees
6. Receive vehicle registration certificate
7. Install license plate

Registration fees:

• Vehicle registration: RMB 100-500 (as of January 2025)
• License plate: Included in lottery/auction
• Other fees: Varies

Processing time:

• Typically 1-2 weeks after all documents ready
• Depends on completeness of documents

Vehicle insurance

Mandatory insurance

Compulsory Traffic Accident Liability Insurance (交强险)

• Legally required for all vehicles
• Basic liability coverage
• Minimum required coverage
• Must be purchased before registration

Costs:

• Varies by vehicle type and value
• Typically RMB 950-1,100+ per year (as of January 2025)
• Required annually

Additional insurance

Commercial insurance (商业险)

• Optional but highly recommended
• Comprehensive coverage
• Theft, damage, third-party liability
• Various coverage levels available

Typical coverage:

• Vehicle damage insurance
• Third-party liability (beyond compulsory)
• Theft insurance
• Glass breakage
• Natural disaster coverage

Costs:

• Varies significantly by coverage level
• Typically RMB 2,000-5,000+ per year
• Depends on vehicle value and coverage

Ongoing costs

Regular expenses

Annual costs:

• Insurance: RMB 3,000-6,000+ per year
• Vehicle inspection: RMB 100-300 per year
• License renewal: Minimal fees
• Parking: RMB 2,400-6,000+ per year (if paid parking)

Monthly costs:

• Fuel: Varies by usage (typically RMB 500-2,000+ per month)
• Parking: RMB 200-500+ per month (if applicable)
• Maintenance: RMB 200-1,000+ per month (average)
• Tolls: If using expressways

One-time costs:

• Repairs: As needed
• Tires: Every few years
• Major maintenance: Periodically

Alternatives to ownership

Car rental

When it makes sense:

• Occasional use
• Short-term needs
• Testing before buying
• Special occasions

Providers:

• Various car rental companies
• Some international brands
• Local rental services
• Online platforms

Costs:

• Daily rates: RMB 200-500+ per day
• Weekly/monthly rates available
• Requires Chinese driver’s license
• Insurance included or additional

Car-sharing

Services:

• GoFun and other car-sharing platforms
• Pay per use
• No ownership required
• Convenient for occasional use

How it works:

• Download app
• Find available cars
• Unlock and drive
• Return to designated area
• Pay per minute/hour

Costs:

• Per-minute or per-hour rates
• Typically RMB 0.5-2.0 per minute
• May require deposit
• Fuel often included

Ride-sharing

Services:

• DiDi (major service)
• Other ride-sharing apps
• Convenient and flexible
• No ownership or driving required

Costs:

• Pay per ride
• Varies by distance and time
• Often cheaper than ownership for occasional use

Common issues and solutions

Issue: Can’t get license plate

Solutions:

• Continue entering lottery (free, but low probability)
• Participate in auction (higher cost, better chance)
• Consider alternatives (rental, car-sharing, ride-sharing)
• Wait for policy changes (may become easier)
• Check if eligible for special categories

Issue: License plate too expensive

Solutions:

• Budget for auction costs
• Consider if vehicle ownership is necessary
• Use alternatives (rental, car-sharing)
• Wait and save for auction
• Check for any subsidies or programs

Issue: Driver’s license conversion complex

Solutions:

• Start process early
• Use translation services
• Get help from bilingual friends
• Consult with driving schools
• Be patient with process

Issue: High ongoing costs

Solutions:

• Budget carefully for all costs
• Choose fuel-efficient vehicle
• Maintain vehicle well to reduce repairs
• Consider alternatives if costs too high
• Share vehicle costs if possible

Issue: Parking difficulties

Solutions:

• Research parking availability before buying
• Consider paid parking options
• Use public transportation when possible
• Choose areas with better parking
• Consider smaller vehicle for easier parking

Tips and best practices

Before purchasing

• Assess need: Do you really need to own a vehicle?
• Budget carefully: Include all costs (purchase, plate, insurance, ongoing)
• Get license first: Complete driver’s license conversion
• Research plate system: Understand lottery and auction
• Consider alternatives: Rental, car-sharing, ride-sharing

During purchase

• Verify vehicle: Check condition and history
• Negotiate price: Don’t accept first offer
• Understand paperwork: Ensure all documents correct
• Check insurance: Understand coverage and costs
• Plan registration: Have all documents ready

After purchase

• Maintain regularly: Regular service extends vehicle life
• Drive safely: Follow traffic rules and be defensive
• Keep documents: Store registration, insurance, license safely
• Budget for costs: Plan for ongoing expenses
• Consider alternatives: Use other transport when practical

Costs summary

Initial costs (one-time)

License plate:

• Lottery: Free (if selected)
• Auction: RMB 20,000-30,000+ (as of January 2025)

Vehicle purchase:

• Used: RMB 30,000-200,000+
• New: RMB 80,000-300,000+

Registration and setup:

• Driver’s license conversion: RMB 200-1,000
• Vehicle registration: RMB 100-500
• Initial insurance: RMB 3,000-6,000+

Total initial: RMB 50,000-350,000+ (varies significantly)

Ongoing costs (annual)

• Insurance: RMB 3,000-6,000+
• Fuel: RMB 6,000-24,000+ (varies by usage)
• Maintenance: RMB 2,400-12,000+
• Parking: RMB 2,400-6,000+ (if applicable)
• Inspection and fees: RMB 200-500

Total annual: RMB 14,000-48,000+ (varies significantly)

Resources

Government offices

• Shenzhen Traffic Management Bureau (车管所): Driver’s license and vehicle registration
• License plate lottery/auction office: Plate allocation
• Check official websites for locations and requirements

Vehicle services

• Authorized dealerships
• Used car markets
• Insurance providers
• Car rental companies
• Car-sharing services

Helpful information

• A bicycle - Alternative transportation
• Moving to Shenzhen - General transportation information
• Community groups - Ask for experiences and recommendations

Related articles

• A bicycle - Alternative transportation option
• Professional help - Services that may assist with vehicle matters

Need help?

HeyShenzhen Community

Information changes frequently in Shenzhen. While we strive to keep our guides accurate and up-to-date, the latest information is often best found by asking in our community groups.

Join our community to get real-time updates, tips, and suggestions from our members:

• Discord - For general discussions and quick questions
• Facebook - For community updates and events
• WeChat: Add me (ID: jayjenxi)