Wendy Zhang/ Shanghai Daily news

Without housing property, a company or permanent residence in Shanghai, Chen, from Hangzhou of Zhejiang Province, was unable to get a car loan from local banks.
Chen was not alone.
Many banks in the city have recently raised their threshold for car loans. Clients without permanent residence in Shanghai must offer the clear-title deed to their properties, or prove they are owners or CEOs of local companies. Banks will also examine the qualifications of clients.
For native borrowers, the duration of car loans was cut from five to three years, and purchasers of imported cars can borrow only 60 percent of the car prices.
Stricter policies have largely reduced the proportion of cars bought on credit. In the first half of the year, less than ten percent of new car sales were sold by means of loans, while the proportion was more than 20 percent last year.
Previously, most borrowers were non-local private companies. After the new policies, white-collar employees who have just joined the work force have become the main borrowers.
By October of last year, 100 billion yuan (US$12 billion) in bad debt had been registered in car loans, accounting for more than 20 percent of the total car loans.