Buying a car from China means wiring a large sum to a company you have not met. Here is how to structure payment so your risk stays low at every stage.
The four-stage payment structure Stage 1, booking deposit: a small amount, typically USD 500–1,000, that reserves the specific VIN and stops it being sold to another buyer. Stage 2, down payment: usually 30% once you have approved the inspection report. Stage 3, balance: the remaining 70% before loading, against the proforma invoice. Stage 4, document release: original bill of lading or telex release issued after the balance clears.
Never pay 100% up front for a car you have not seen inspected, and never wire to a personal account. Payment should go to the exporter's registered company account, with the company name on the invoice matching the beneficiary name exactly.
Telegraphic transfer (T/T) The most common method. Fast and low cost, but the funds are not recoverable, so it depends entirely on the counterparty. Mitigate by staging payments as above and by checking the exporter's business licence and export licence numbers.
Letter of credit (L/C at sight) For orders above roughly USD 50,000, an L/C is worth the bank fees. Your bank only releases funds when the exporter presents compliant documents — the bill of lading, invoice, packing list and inspection certificate. This shifts risk to document compliance rather than trust. We support L/C at sight and can supply a draft document list for your bank.
The document set you should receive Proforma invoice, commercial invoice, packing list, bill of lading, export certificate and de-registration proof, certificate of origin, inspection report with photos, battery state-of-health report for EVs, and any conformity certificate your market requires such as SONCAP for Nigeria, PVoC for Kenya or SASO for Saudi Arabia.
Red flags A price far below market, pressure to pay in full immediately, a beneficiary account in a different country from the seller, refusal to provide a VIN before payment, and no willingness to issue a proforma invoice. Any one of these is reason to stop.
Every CarSourceHub order runs through the four-stage structure with a proforma invoice and contract PDF generated automatically, and you can track each payment milestone in your order centre.