Wendy Zhang/ Shanghai Daily news

Continuous price reductions have caused defaulted car loans to mount up, reaching 100 billion yuan (US$12 billion) by October, said Xu Hongyuan, vice-director of the Development and Research Department under the official State Information Center at a forum on November 22, as cited by today's eastday.com.
By last month, Chinese car loans had totaled 183.8 billion yuan, with 100 billion yuan of that in bad loans.
Excessive car price cuts are cited as the main reason for the soaring number of bad loans, Xu explained. "The depreciation of the cars have made many mortgage holders choose to purchase another car rather than repay the loans," he pointed out, adding that the imperfect domestic personal credit system is also a reason for the rising numbers of bad loans.