Buying a car abroad stopped being unusual a long time ago. Russian buyers now purchase cars in Japan, South Korea and China on a regular basis, and many models reach the market through direct import.
Choosing the car, though, is far from the hardest part of the deal.
Most questions come up at the payment stage. The buyer has to transfer the money for the car, check the documents, make sure the seller is reliable, and set up the payment so that it does not create delays or extra risk.
Here are the main points worth your attention before any money leaves your account.
Why buyers choose cars from Asia
Each market has its own characteristics.
Japan
The Japanese market has always attracted buyers with:
- a wide selection of cars
- a transparent auction system
- high standards of vehicle servicing
- a broad choice of right-hand drive models
South Korea
South Korea remains a popular market thanks to:
- a large number of cars with a transparent history
- access to current models
- a wide choice of premium-segment cars
- export companies that are used to working with foreign buyers
China
China's car market is growing fast, and the country is becoming one of the world's largest car exporters.
The strongest interest today is in:
- electric vehicles
- hybrid cars
- new models from Chinese brands
- low-mileage cars
Where buying a car starts
Before paying, get as complete a picture of the deal as possible.
Buyers are usually given:
- the invoice
- the vehicle documents
- information about the seller
- export documents
- a breakdown of the delivery cost
The earlier the documents are checked, the lower the chance of questions coming up after the money has been sent.
Why price alone is a bad guide
One of the most common mistakes is to decide purely on the price of the car.
Before paying, check:
- the seller
- the export company
- the vehicle documents
- the payment details
- the delivery terms
- any additional costs on the deal
A price that looks too good always calls for extra checks.
How payment for a car works
The structure depends on the country of purchase and on how the deal is put together.
In most cases the process looks like this:
- 1Choosing the car.
- 2Checking the documents.
- 3Receiving the invoice.
- 4Agreeing the delivery terms.
- 5Making the international payment.
- 6Receiving the seller's confirmation that the funds have arrived.
- 7Preparing the car for export.
In practice, it is the payment stage that needs the most careful preparation.
The most common mistakes
When buying cars abroad, the problems that come up most often are:
- paying to unverified bank details
- errors in the documents
- vehicle data that does not match the documents
- no confirmation of the transfer
- sending the money before the deal has been checked
Most of these situations can be prevented before the funds are ever sent.
Which documents to keep after payment
Once the payment has gone through, keep:
- the invoice
- the contract or agreement
- the payment documents
- confirmation of the transfer
- the SWIFT MT103
- the correspondence on the deal
These documents may be needed at various stages of delivering the car.
Why the structure of the deal should be checked in advance
An international transfer for a car is not simply sending money abroad.
You need to know:
- who the funds are going to
- on what grounds the payment is being made
- which documents support the deal
- which documents will be needed after payment
The more of this is worked out in advance, the smoother the purchase itself goes.
How EAST PAY helps when you buy a car abroad
For payments for cars from Japan, South Korea and China, EAST PAY specialists help check the parameters of the deal before any money is sent.
Ahead of the payment you can verify the documents, the bank details, the payment reference and the structure of the settlement.
The client receives supporting documents for the completed payment, including the SWIFT MT103 and other payment confirmations that other parties to the deal may ask for.
This approach reduces the risk of errors up front and avoids many of the problems that arise when a buyer arranges an international payment on their own.
Conclusion
Buying a car in Japan, South Korea or China starts not with the payment but with checking the deal.
The better the documents are prepared, the bank details confirmed and the payment terms agreed, the higher the chance that the car will be paid for and shipped without extra complications.
If you already have an invoice or an offer from a seller, EAST PAY specialists will help you check the structure of the deal and arrange the international payment with the documentation you need.