How to pay a Chinese car exporter safely
The T/T + PI + B/L system explained — and the red flags that should stop any deal.
Last reviewed: 2026-06-14
The standard payment flow
- Proforma Invoice (PI) first, money second. Before any payment, you receive a PI naming the exact vehicle (VIN), price, payment terms, bank details and validity. No PI, no payment — ever.
- Deposit by T/T (~30%). A bank transfer to the company account on the PI secures the vehicle. The exporter only buys/locks the car after your deposit clears.
- Evidence during preparation. Photo and video updates: purchase, transfer, workshop, loading. You should never be paying into silence.
- Balance before loading, B/L after. You pay the remainder before the car is loaded; the Bill of Lading — the document of title — is then issued. Holding the original B/L means the cargo can only be released to you.
Why this structure protects both sides
The deposit protects the exporter from sourcing a car for a buyer who disappears; the B/L protects the buyer from paying for goods they never control. Between those two anchors, every step exchanges money for verifiable progress. The system has run global vehicle trade for decades — you don't need to invent a safer one, you need to make sure your counterparty actually follows it.
What the Proforma Invoice should contain
A proper PI is not a casual quote — it is the document that binds the deal. Before paying any deposit, check that it includes:
| Vehicle identification | Full 17-character VIN, make, model, year, colour |
|---|---|
| Price and currency | FOB amount in USD (or agreed currency), with a clear note on what the price covers |
| Payment terms | Deposit percentage, balance trigger (typically "before loading"), bank account details |
| Validity period | How long the offer stands — typically 3–7 days for a sourced vehicle |
| Seller identity | Company name matching the bank account; contact details |
If any of these are missing — especially the VIN or the company name on the bank account — do not pay. A PI without a VIN is a promise to deliver "a car"; a PI with a VIN is a commitment to deliver *that* car.
Red flags that should stop the deal
- Payment to a personal account. Company invoice, company account, matching names. No exceptions, no "it's faster this way".
- No PI, or a PI without VIN and validity. A one-line invoice that could describe any car protects nobody.
- Prices far below the market. China's used-car prices are competitive but not magical. A "2023 SUV at half of everyone else's price" is bait — see our full guide on how to spot scams.
- Pressure to skip the deposit stage and pay in full. The staged structure exists for your protection; urgency is how it gets bypassed.
- No traceable web presence or company identity. A real exporter can show consistent contact details across their site, WhatsApp business profile and documents.
For a deeper dive into scam patterns and how to verify a company before sending money, read How to spot used car export scams from China.
What to do if something goes wrong mid-deal
Even with a legitimate exporter, complications happen — a car fails pre-shipment inspection, a sourced vehicle sells before your deposit clears, or port schedules shift. The difference between a professional and a problem is how these are handled:
- Car unavailable after PI issued: The exporter should notify you immediately and offer either a comparable substitute (with a new PI for your approval) or a full deposit refund. Silence is not an acceptable response.
- Condition discrepancy discovered during preparation: Photos at each stage exist for this reason. If workshop inspection reveals undisclosed damage, you should be told before balance payment, with the option to renegotiate or cancel.
- Shipping delay: Vessel schedules are outside anyone's control. A transparent exporter gives you the updated ETA and, if the delay risks your country's age limit, flags that proactively.
In every case, the PI is your reference document — it states what was agreed, and departures from it require your consent.
A note on currency and bank fees
Quotes are in USD; international T/T transfers carry sending and intermediary bank fees on the buyer's side, and your bank's exchange rate applies if your account is in another currency. Confirm with your bank what arrives net — the PI amount is what must land. These fees are a small fraction of the vehicle value but should be part of your total landed cost calculation.
How we handle payment
We issue a PI with full VIN, specs and a photo set before asking for any deposit. The PI names our registered company — the same name that appears on the bank account, the Commercial Invoice and the export document set. After deposit, you receive photo/video updates at each stage (purchase, workshop, port). The balance triggers B/L release, and the original documents are couriered to you. If a car we quoted turns out to be unavailable before PI issue, we tell you and refund — we do not substitute a different vehicle without your explicit agreement.
Browse available vehicles to start the process, or ask us about a specific model and destination.
Frequently asked questions
Is a 30% deposit normal, or should I push for less?
A deposit around 30% is the industry standard for sourced used cars: it is enough for the exporter to commit funds to secure your specific car, and small enough that your exposure is limited before shipping documents exist. A seller demanding 100% upfront before any PI deserves scrutiny; so does one accepting 0% — they may have no real car to secure.
What exactly does the Bill of Lading protect?
The original B/L is the document of title: whoever holds it can claim the cargo at the destination port. You pay the balance before loading, and in exchange the B/L is issued and couriered to you — the goods physically cannot be released to anyone else. This is the single strongest protection in the whole transaction.
Should I use an escrow service or letter of credit instead?
For one or a few cars, an L/C usually costs more in bank fees and paperwork than it saves in risk, which is why almost the entire trade runs on T/T. If you are building volume with a new supplier, splitting the first order small is a cheaper risk control than complex instruments.
What if the car never ships after I pay the deposit?
Your PI is the contract: it names the vehicle by VIN, the price, and the delivery obligation. A professional exporter re-verifies availability before issuing the PI precisely so this doesn't happen — and if sourcing falls through on their side, the deposit is returned. Get that refund condition stated on the PI before paying.
Disclaimer: import regulations change and are applied by the destination country's customs at the time of clearance. The information on this page is general guidance, not legal advice — always confirm current rules with your local customs broker before paying a deposit. Under FOB terms, import compliance and clearance are the buyer's responsibility; we flag obvious issues (such as vehicle age limits) before you commit.