The biggest risk in importing cars is not a high price — it is paying and never receiving the vehicle. Choosing the right payment method is your first line of defence. Here are four common options compared.
1. Four Payment Methods Compared
| Method | Your risk | Best for |
|---|---|---|
| Full prepayment | Highest — entirely on their credibility | Only small trial orders with excellent existing suppliers |
| Deposit + balance against B/L | Moderate; most common | Standard choice for a first order |
| Letter of credit (L/C) | Lower — the bank checks documents | Large amounts and first-time counterparties |
| Supplier terms | Lowest — goods first, payment later | Established long-term relationships |
2. How to Choose: Three Conditions
- Depth of relationship: for a first order prefer an L/C or deposit-against-B/L — never open with full prepayment.
- Order size: the larger the amount, the more you want a bank in the middle. L/C fees are small relative to vehicle value.
- Counterparty credibility: request business licence, export credentials and past deals. If they cannot provide them, tighten payment terms.
3. Anti-Fraud Checklist Before Paying
- Account name must match the company name: pay to a corporate account; be wary of "just send it to a personal account".
- Verify bank changes by phone: the classic fraud is an email mid-deal announcing new account details.
- Put VINs in the contract: specify each vehicle's VIN so the wrong car or spec cannot be shipped.
- Agree inspection and acceptance: who inspects before loading, who receives the report, and what happens if it fails.
- Keep all correspondence: emails, chats and quotations are your evidence if things go wrong.
Shunwei Auto tip: Pair "deposit plus balance" with document control: pay the balance once you receive and verify the B/L copy. It protects your money without over-exposing the supplier.
Note: Be wary of anyone urging "pay today because of exchange-rate movement". Legitimate deals do not collapse over one day's delay.
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