An Expat’s Guide to Renting a Car in Shanghai

Renting a car in Shanghai is possible for expats, but requires a Chinese driving license, advance booking, and some preparation around deposits and documents. Here is what to expect.

Before you head to the nearest dealership, make sure you are prepared to rent a car in China, you have all the things you need as far as insurance and paperwork, and that you are capable of dealing with China’s road conditions and rules. 

Note that no foreign or international driving licenses or permits are recognized in China, so you will have to provide either a Temporary or Permanent Chinese driving license. Luckily these have become easier to obtain in recent years, and if you are going to stay in China for the long term, it is a worthy investment of your time to get a Chinese driver’s license. 

You must be 21 years of age or older and have held a driving license for at least a year to rent a car in China. Some bookings will specify the lower age cut off at 23, 25, or 26 years of age, so read carefully when booking. If you are under 25 a variable daily fee is added to your total cost. 

While your visa or residence information may be requested at pick up, it mainly serves as additional identification and proof that you are in China legally. In practice, most rental companies require you to hold a valid visa or residence permit, but whether you can rent a car will also depend on their internal policies and on whether your status allows you to obtain the appropriate Chinese driving license.

Individual car rental companies in Shanghai may ask for additional identity and driving permit documents, so be sure to read those carefully. In the case of any missing documents, the car will be refused and, if prepaid, charges may not be reimbursed.

Required Documents to Rent a Car in Shanghai

To ensure you are ready to rent a car and hit the road, prepare these items before you start to visit car rental companies.  

• Chinese Driver’s License
• Passport
• Valid Chinese Visa or Residence Certificate
• Foreign or Chinese Credit Card in renter’s name (regardless of payment method)
• Booking confirmation
• You might be asked to show your home country driver’s license

How to Get a Temporary Driving Permit in Shanghai

Since your home licence and your International Driving Permit both count for nothing here, the short-stay answer is a temporary driving permit. It is issued against your existing foreign licence and lets you drive legally for a limited period rather than putting you through the full Chinese licence process.

What you generally need to bring:

• Your passport, with a valid visa or residence permit.
• Your home country driving licence, plus a certified Chinese translation of it.
• Passport photos to the local specification.
• A basic medical check, which is normally done on the spot at the issuing office.

Shanghai has run this service at its international airports as well as at vehicle administration offices, aimed at visitors who need to drive soon after landing. Availability and opening hours change, so confirm with the Shanghai traffic police or your rental company before you count on doing it at the airport, rather than arriving and hoping.

The permit is tied to the categories on your existing licence, so if your home licence does not cover a vehicle type, the temporary permit will not either.

Converting Your Foreign Licence to a Chinese One

If you are staying longer than a holiday, the temporary permit stops making sense and a full Chinese licence is the better investment. Holding a foreign licence already spares you the practical driving test in most cases, but not the written one.

The written exam is the part people underestimate. It is a large multiple-choice test drawn from an official question bank, available in English, and it leans heavily on penalty points, road-sign meanings, and rules that differ from what you are used to. The question bank is published, so the realistic preparation is working through it rather than relying on driving experience.

You will also need the same documents as the temporary permit: passport and valid status, your foreign licence with a certified Chinese translation, photos, and a medical check. Bring originals. Offices are used to foreign applicants but not forgiving about missing paperwork.

Choosing a Rental Car Company in Shanghai

A quick search on Google or Baidu maps shows quite a variety of Car Rental and Leasing companies around Shanghai, however many of these are actually pick up spots serving multiple companies, or primarily specialize in renting cars with drivers.

Most list phone numbers, but you’ll have to be able to speak Mandarin to inquire that way. Best option is to book online through aggregate services like Kayak, Momondo, or Rental24. Deals on those sites will offer prepay, pay at pick up, and options for pick up locations in both Puxi and Pudong.

Many of the available bookings online are hosted by Hertz and eHi. Direct booking is available on both Hertz and eHi websites, however daily cost is overall the same as on aggregate sites. Hertz direct online booking is the most thorough in explaining requirements and regulations.

Be aware that different agent locations around the city will be able to provide varying levels of English and technical support. It is advised to reserve your pick up time earlier than you need it and be ready to be flexible.

List of Car Rental Companies in Shanghai

If you would like to book directly through a company website, Hertz is by far your best option with eHi a close second. While in the past, foreigners to China preferred to use recognised international chains because of their easy-to-navigate websites and better communication styles, these days Chinese car rental brands are taking over as competitive, professional, and trustworthy options.

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Have a look at some of their websites, compare some prices, and see which option is best for you. 

Hertz

Minimum Driver Age	21-25
# Locations in SH	Various across the city, including Shanghai Airport
Cancellation Policy	Free 24hrs before booking. Within 24hrs 500RMB Fee
Insurance	Included in booking fee with extra purchases available
Contact Number	400-616-6666 ; for English press 9
Ease of booking	Easy and thorough – better or equal to aggregate deal sites

Avis

Minimum Driver Age	21-25
# Locations in SH	Various across the city, including Shanghai Airport
Cancellation Policy	Free 24hrs before booking. Within 24hrs fee start 500RMB up to full cost of reservation
Insurance	Available for purchase, not included in booking fee
Contact Number	+86 102 1111
Ease of Booking	Difficult and unclear – better to use aggregate deal sites

eHi

Minimum Driver Age	21 (under 25 fee applicable)
# Locations in SH	Various across the city, including Shanghai Airport
Cancellation Policy	Free 24hrs before booking. Within 24hrs fee start 500RMB up to full cost of reservation
Insurance	Available for purchase, not included in booking fee
Contact Number	400 888 6608
Ease of Booking	Easy and clear – same or equal to aggregate sites, Chinese phone number required for booking

Europcar

Minimum Driver Age	26
# Locations in SH	2
Cancellation Policy	Free 24hrs before booking. Within 24hrs fee unspecified
Insurance	Available for purchase, not included in booking fee
Contact Number	Not provided on website
Ease of Booking	Near impossible – better to search on aggregate deal sites

Costs of Renting a Car in Shanghai

If you plan ahead, a basic compact car for 4 adults can cost as little as 150RMB per day. Larger vehicles with more features range up to 600RMB per day. However, early booking is essential in cost planning. For weekends, at least a month in advance is ideal, and at least 2 weeks in advance for weekday reservations.

If attempting to book cars the immediate days or weekend ahead, choices will be extremely limited and likely costly, if not nonexistent. This is particularly true during national holidays like Chinese New Year, Golden Week, and so on. 

Related Expenses

As to be expected, all fines accrued during your time driving the rental car and all fuel used must be paid for by you. The petrol policy for most rentals is “full to full”, meaning you will start your booking with a full tank and must return it with a full tank at your own expense. Gas prices in Shanghai range from 7 RMB to 9 RMB per liter. If you planned to drive from Shanghai to Nanjing which is 300 km away, you would burn through 120 to 180 RMB worth of gas. Average fines for traffic violations in Shanghai start at 100 RMB and go up to 500 RMB. 

Under 25 Fee

If you are under 25 years old, an additional fee may be added to your booking. Your confirmation will specify that the under 25 fee will be added but may not specify the amount. The fee can cost, on average, an additional 260RMB per day. 

Cancellation Fees

Almost all deals and companies offer free cancellation up to 24 hours in advance with full reimbursement for prepaid bookings. Cancellation within 24 hours may result in no or partial refunds, and a no show to pick up will result in no refunds. Late drop off may incur extra fees up to a full day’s rental, so plan your time accordingly.

Insurance

Most booking websites will offer additional insurance for your rental period and will vary on the coverage for damage or theft. Additional insurance coverage or damage fee waivers cost on average 1500 RMB and will require claims to be submitted within 24 hours of incidents. A collision damage waiver (CDW) is typically available as an add-on for around RMB 50 to RMB 100 per day and is worth taking if your travel insurance or credit card does not already cover rental car damage.

Claims will be subject to conditions and will not cover damages resulting from drunk driving, fleeing an accident, or other particular situations. Information on automatic coverage and additional options will be viewable in Terms and Conditions links. Make sure to read thoroughly. 

Regardless of third party insurance or additional damage waivers, a credit card in the renter’s name is required for pick up in all cases and must have funds available for the deposit which will be held against the credit card balance at pick up. Deposits are typically 4000 – 5000 RMB and are refunded at drop off subject to damage assessment.

Plate Restrictions and What Driving in Shanghai Is Actually Like

Before you commit to a rental, understand that Shanghai actively manages how many cars use its roads, and a rental car’s plate decides where and when you can drive it.

• Shanghai plates are famously scarce and expensive, auctioned in limited numbers, which is why many rental vehicles carry plates from elsewhere.
• Non-Shanghai plates face restrictions on the city’s elevated expressways during peak periods, and the rules have been tightened over the years.
• Ask the rental company directly what plate the car carries and which roads and times it is barred from. They deal with the question daily.
• Enforcement is camera-based and fines reach you through the rental company, often after you have returned the car.

Worth saying plainly: for getting around Shanghai itself, the metro beats driving on almost every measure, and taxis and ride-hailing cover the rest. A rental car earns its keep when you are leaving the city, for the water towns, Hangzhou, or a weekend further afield. That is the trip to rent for.

Car Rental Procedure

Make sure you know the pick-up and drop-off location for your car. In most cases these can be two different locations or whatever is most convenient for you. Understand the opening hours of the branch office and you might want to have a Chinese friend go with you, while the big rental companies will usually have some staff who speak English, they might not be there at the time of your visit. Using a translator app will help, and you will be fine, but having a local to guide you will reduce the stress levels. 

Inspecting the Rental Car

As with any rental car, check for scratches, dents, and damage to upholstery and interior with an agent present before driving off. Document with photos and ask the agent to confirm they are recorded as pre-existing damage. Rental agencies will have their own records for each car but things can be missed and if discovered after your drop-off may be deducted from your deposit.

Signing the Car Rental Contract

Before you sign, read the contract carefully. It should be bilingual, in both English and Chinese. If it isn’t, either walk away or bring a Chinese friend along to go through it with you. 

Before you put your name to anything, run through this checklist:

• The price and the rental period are written out clearly.
• You understand exactly what the insurance covers.
• Any additional drivers are named and covered by the contract.
• You know the refund conditions, in case the car isn’t up to scratch or you have to end the rental early.
• Every bit of existing damage you spotted during the inspection is written down, with your agent there to witness it.
• You’ve checked the scope of use and any limits. Be honest about how far and where you’ll drive: no rental allows island or international border crossings, and some provinces can be off-limits or subject to travel restrictions.

Making Payment

All of the usual payment methods will be accepted at legitimate car rental companies just make sure you have enough to cover those refundable deposits. You can opt for foreign or Chinese bank debit card, foreign or Chinese Credit cards, AliPay or WeChat Pay. Please note that cash may not be accepted.

Now, on to You

Driving in China means encountering a variety of road conditions and landscapes. Be ready to handle different levels of road maintenance and size. Be safe and know the rules of the road and follow them. 

All mainland areas require driving on the right side of the road. This means that any car you rent will be designed for right-lane driving. Make sure you are familiar and comfortable with driving this type of car configuration and lane rules before heading out. Speed limits can vary and are slower on urban streets than on highways. Pay attention as speed violations are strictly enforced and can result in heavy fines.

All of that being said, renting your own car will open you up to all kinds of adventures in China. The unparalleled freedom of being able to pack a bag and jump in the car for a spontaneous weekend road trip is a feeling like no other. Get to know the real china on the open road. 

Read more: Driving in China | Getting a Chinese Driving License | VPN for China

Frequently Asked Questions

Can I drive in Shanghai on an International Driving Permit?

No. Mainland China does not recognise the International Driving Permit, which surprises almost every visitor who arrives holding one. You need either a temporary driving permit issued in China or a full Chinese licence.

Can I use my home country licence for a few days?

Not on its own. A foreign licence is the basis for getting a temporary permit, not a substitute for one. Rental companies check, and driving without valid Chinese authorisation puts your insurance cover in question if anything happens.

Do I need to speak Chinese to rent a car?

Not at the international brands, where English-language booking and staff are common. Local operators are cheaper and often better value, but expect the paperwork and the phone line to be in Mandarin.

Is it worth renting a car in Shanghai at all?

For the city itself, usually not. The metro is fast, cheap, and extensive, and parking is a real constraint. Renting makes sense for trips out of Shanghai, where public transport gets awkward and a car buys you genuine flexibility.

What happens if I get a traffic fine in a rental car?

Enforcement is largely camera-based, so the notice goes to the registered keeper, meaning the rental company, and they charge it to you. It can arrive after you have handed the car back, which is why the deposit is often held for a while.

Can I take a Shanghai rental car to another province?

Usually yes, but check the contract first. Some agreements limit the area, charge for one-way returns, or require notice for long trips. Ask before you plan a route, not after you have driven it.

Sources Cited

• Shanghai Municipal Government (English portal)
• Ministry of Public Security of the People’s Republic of China
• National Immigration Administration of China

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