A 30% to 50% deposit is the standard recommendation for securing a vehicle export order from China, as this amount covers the initial costs of vehicle procurement and logistics preparation.
This initial payment, typically made via Telegraphic Transfer (T/T), is a crucial step that demonstrates a firm commitment from the buyer and allows your export partner to begin work immediately. It protects both parties by ensuring resources are allocated correctly from the start.
Why is a 30% to 50% Deposit Standard?
Unlike a simple retail purchase, exporting a vehicle involves multiple stages. The deposit isn't just a down payment; it's working capital that funds the critical first steps of the export process. The deposit isn't just a down payment; it's working capital that funds the critical first steps of the export process.
Here’s what the deposit typically covers:
- Securing the Vehicle: Your export partner uses the funds to purchase the vehicle(s) directly from the factory or supplier, reserving the specific models and configurations you requested.
- Domestic Logistics: It pays for transporting the vehicle from the factory or dealership to the port of departure (e.g., Shanghai, Guangzhou, or Tianjin).
- Port and Handling Fees: It covers initial port charges and preparation for loading.
- Booking Shipping: The deposit allows for booking space on a RoRo (Roll-on/Roll-off) vessel or in a container, securing a place for your vehicle on its journey.
A Typical Payment Workflow
For international buyers, the payment process is straightforward and designed to build trust at each stage.
Proforma Invoice (PI) Issued: After you agree on the vehicle and terms, your supplier issues a Proforma Invoice. At Starvia Automotive, our quotes feature Transparent CIF and FOB Pricing, clearly itemizing all costs so you know exactly what the total price includes before any payment is made.
Deposit Transferred (30%–50%): You wire the deposit to the exporter’s company bank account. Once received, the procurement and logistics process begins.
Vehicle Shipped: The vehicle is sourced, inspected, and moved to the port. Once it is loaded onto the vessel, the shipping company issues a Bill of Lading (B/L).
Final Balance Paid (70%–50%): The remaining balance is typically due upon presentation of the B/L copy. This document serves as proof that your vehicle has been shipped as promised, giving you the confidence to complete the final payment before the original documents are sent to you for customs clearance.