EXW means you pay only for the car at the seller's yard—you handle everything else, including inland transport in China and export clearance, which is impractical from overseas. FOB includes delivery to the port and export customs clearance; you pay for ocean freight and insurance. CIF adds freight and basic insurance to a named destination port. For a first-time buyer, FOB is usually the best balance: the exporter, who knows Chinese logistics, handles the complicated part, while you control the freight booking and can shop rates among forwarders. Watch for exporters quoting unrealistically low FOB prices and making margin on inflated 'shipping services' later. Get a separate freight quote before signing, and compare the exporter's CIF offer against FOB plus your own freight estimate. Ask explicitly whether the price includes inspection, export license fees, and port charges—ambiguity here is the most common source of disputes.

Chinese passenger cars produced after 2005 have fully transitioned to asbestos-free brake pads, clutch plates, and gaskets. However, for export to countries with strict regulations, buyers must pay for sampling and testing by a NATA-accredited laboratory before shipment, and obtain an asbestos-free certificate.

Two separate protections matter: cargo insurance and contractual risk transfer. Cargo insurance: for container or RoRo shipments, buy marine cargo insurance covering total loss and damage, typically 110% of the CIF value (average cost 0.3%–0.8%). Check exclusions — many policies exclude pre-existing damage, so a pre-shipment inspection report is essential to prove the car's condition at loading. Incoterms define who bears risk and cost at each stage: 1. FOB (Free On Board): exporter pays until the car is loaded on the vessel; risk passes to you at that point. You pay ocean freight and insurance. Common and usually cheapest if you have your own freight forwarder. 2. CIF (Cost, Insurance and Freight): exporter pays freight and minimum insurance to your port. Convenient but the insurance coverage is basic — consider topping it up. 3. EXW (Ex Works): you handle everything from the exporter's yard; only choose this if you have a trusted agent in China. Put the agreed Incoterm and port clearly in the contract, and never release final payment before the Bill of Lading is issued.