The most common payment term for buying cars from China is a Telegraphic Transfer (T/T), typically structured as a 30% initial deposit to secure the vehicle and a 70% final balance payment upon confirmation of shipment.

This two-part payment structure is the industry standard because it creates a secure and transparent process for both the international buyer and the exporter. It ensures the buyer's order is confirmed and the vehicle is reserved, while also protecting the exporter by securing full payment before releasing the critical documents needed to claim the car at its destination.

The Standard Payment Workflow

For most vehicle exports, whether for a single unit or a bulk fleet order, the payment process follows these clear steps:

  1. Proforma Invoice and Deposit: After you agree on the vehicle specifications and pricing (often a CIF quote), your export partner will issue a Proforma Invoice (PI). You then transfer the initial deposit, usually 30% of the total value, via T/T to the exporter’s company bank account. This payment officially confirms your order and secures the vehicle.

  2. Vehicle Preparation and Inspection: Once the deposit is received, the vehicle is prepared for export. For added peace of mind, especially with used cars, Starvia Automotive can arrange a comprehensive 200-Point SGS/BV Inspection at this stage. This provides you with a detailed third-party quality and condition report before the final payment is due.

  3. Shipping and Proof of Shipment: The vehicle is transported to the port and loaded onto the vessel. Once it ships, the shipping line issues an essential document called the Bill of Lading (B/L), which acts as the title for the goods in transit. We send you a copy of the B/L as definitive proof that your car is on its way.

  4. Balance Payment and Document Release: With shipment confirmed, you transfer the remaining 70% balance. Once Starvia Automotive confirms receipt of the full payment, we immediately courier the original Bill of Lading and all other necessary export documents (like the Commercial Invoice, Packing List, and Certificate of Origin) directly to you. You will need these original documents to clear customs and take possession of your vehicle at the destination port.

What About Letters of Credit (L/C)?

While Letters of Credit (L/C) are a well-known payment method in international trade, they are less common for vehicle exports from China. The T/T deposit method is generally preferred by both buyers and sellers because it is faster, involves lower bank fees, and is far less complex than the L/C process. This efficiency helps get your vehicle sourced, shipped, and delivered more quickly.