Pay safely when importing a car from China by splitting payment into four stages: a USD 500-1,000 booking deposit to reserve the VIN, 30% down after you approve the inspection report, the 70% balance before loading against the proforma invoice, and document release after clearance. Always wire to the exporter's registered company account — never a personal account — and use a letter of credit at sight for orders above USD 50,000.
Key Facts Table
| Stage | Amount | Trigger |
|---|---|---|
| 1. Booking deposit | USD 500-1,000 | Reserves the specific VIN |
| 2. Down payment | 30% | After approving inspection report |
| 3. Balance | 70% | Before loading, against PI |
| 4. Document release | — | Original B/L or telex release |
T/T vs L/C
T/T is fast and cheap but unrecoverable — mitigate with staged payments and by verifying the exporter's business and export licence numbers. L/C at sight shifts risk to document compliance: your bank releases funds only against the bill of lading, invoice, packing list and inspection certificate. Worth the bank fees above roughly USD 50,000.
Red flags — stop if you see any
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; no willingness to issue a proforma invoice.
FAQ
Should I ever pay 100% up front? No. Never pay in full for a car you have not seen inspected, and never wire to a personal account — the beneficiary name must match the exporter's registered company name exactly.