Overseas buyers left after paying a 30% deposit? Only by understanding these 3 numbers can you lose less one car

Automobile Export·Risk Control Required Course

Let's start with a real scene:

Last week, a colleague working on the Central Asia line came to me for tea and said one thing.

He sent a Toyota to a customer in Kazakhstan, and the contract was the most common payment method in the industry-30% deposit, and 70% of the final payment can be paid on a copy of the bill of lading.

The car has been loaded and shipped, and the cargo ship is floating at sea. As a result, the customer suddenly lost contact, WhatsApp did not respond, and the phone did not answer.

He panicked: the money had not been retrieved, the goods were at sea, and no one could find them.

I asked him one thing: Do you still have the bill of lading?

He said he was.

I said: Then why are you panicking? There won't be much loss on this order.

He was stunned: That was the final payment of 70%!

I calculated an account for him, and he felt at ease after listening to it.

1. Calculate an account first: Can you cover the 30% deposit?

When many people heard that the buyer had run away, their first reaction was that they had suffered a huge loss.

But that's not how the accounts are calculated. First distinguish which link the goods are in, the ceiling of loss is completely different:

Do you see?

The 30% deposit covers the lowest risk of breach of contract during the preparation period.

There is only one real hole: the rights to goods are sold and the money has not yet reached the account.& nbsp; As long as this step does not happen, the worst situation will be a loss of logistics costs and time.

Then why is everyone afraid of running away with a 30% deposit?

Because the real explosion in the industry is never about running around the lead time, butseeing payment on a copy of the bill of lading turn into payment on delivery, and finally it becomes that the goods are gone and the people are gone-one step to relax and one step to lose.

2. The truth: 90% of the people running away is not a scam, but a breach of contract

Dig deeper one more level.

I have been exporting for many years and have seen dozens of cases where I paid 30% and then left. Less than 10% of the cases actually came to defraud the deposit.

The remaining 90% follow the same logic:

The current price of the car fell below his contract price.

For example (numbers only talk about logic):

The contract price is 100 and the deposit is 30. Halfway through the boat, the market fell, and the current price of this car at the destination port was only 85.

Buyers settle accounts: If they continue to perform the contract, they will have to pay 70, and they can only sell 85, resulting in a gross profit of 15; if they abandon the order, they will lose 30 down payment, but save 70 in cash flow-they will lose 30 but still have 70 in hand.

Which one loses less? Any fool can count.

Therefore,abandoning an order is not a moral issue, but a business decision. nbsp; The lower the market, the higher the running rate; the higher the market, the lower the running rate-this is the iron rule.

This is also why: Preventing running orders is essentially preventing market fluctuations, not scammers.

Then how to prevent it? Look down.

Three or three numbers determine how much you lose or lose

Number ①: 20%

Article 586 of the Civil Code: The deposit shall not exceed 20% of the subject matter of the contract, and the excess shall not have the effect of the deposit.

What does that mean?

Your contract contains a 30% deposit. When it comes to breach of contract and accountability, the law only recognizes 20% of it as a deposit-which can be confiscated; the remaining 10% is a advance payment-after the buyer breaches the contract, you will refund it in principle. (You can not be principled)

This is why many exporters 'contracts state that 30% of the deposit will be confiscated, but they cannot get it back when they actually go to a lawsuit.

Correct writing: The contract is split into 20% deposit + 10% advance payment. In case of breach of contract, the deposit will be confiscated and the advance payment will be offset against the liquidated damages.  The difference between one word is heaven and earth.

Figure ②: 70% and bill of lading

Whether the final payment is the copy of the bill of lading or the goods.

●70% payment is made by seeing a copy of the bill of lading → release the bill only when the final payment is received,

The rights of goods will always be in your hands

●70% of the goods will be paid after arrival at the port → he will not pay when the goods arrive, so you can only resell or return the shipment.

passively beaten

●70% cash on delivery → equals sales on credit,

Full exposure

Remember one sentence and post it on your desk:

If the final payment is not in the account, the original bill of lading will not be sold.

Number ③: 50%

How much the deposit is charged is not a slap on the head, butis based on the difficulty of resale of the model:

● Mainstream models, global circulation models → 30% is enough, and you can resell it at any time if you abandon the order

● Customized cars, unpopular configurations, non-mainstream markets →

Deposit received more than 50%

, because he abandons the order, your resale cycle may count in months

● First order for new customers → 100% T/T or sight letter of credit,

not negotiable

Bottom line: The harder it is to change hands, the harder the deposit will be.  This is the logic of risk control, not 30% is industry practice.

4. Adjust the three-piece set as much as possible: Spend 2 hours before placing an order and save 200,000 yuan

Many running orders are doomed the moment the contract is signed-because you have never checked him at all.

There are three things you must do before placing an order:

Check company registration

1. : Local industry and commerce/tax websites check registration information, don't just look at WhatsApp avatars and business cards

Check import records

2. : Use customs data to check if he has any real car import records in the past two years, what cars he entered and which port he used

cross-validation

3. : Ask customers to provide contact information of past partners, or find counterparts at the destination port to inquire about reputation--

It is impossible for a buyer who has been in the industry for 3 years to be unknown

Three no buyers with no records, no reputation, and no deposits?

It's simple: serve new customers as standard-100% prepayment, or a sight letter of credit.& nbsp; If he is really powerful, he will not be afraid of you taking money; if he is not strong, he will not pass this hurdle.

5. Clause 4 of the contract: It's better to write it without using it than not using it when you want to use it.

deposit penalty

1. : Specify the structure of 20% deposit +10% advance payment and the consequences of breach of contract

liquidated damages

2. : Agreed to compensate a certain proportion of the contract amount to cover the part not covered by the deposit

Ownership retention clause

3. : Vehicle ownership will not be transferred until the purchase price is paid-this is your last legal trump card

dispute resolution

4. : Clarify the place of arbitration and the arbitration institution, and don't write about settlement through negotiation-when negotiation cannot be reached, this is your way out

A few last words

After so many years of exporting, I feel more and more:

What this industry earns has changed from poor information to poor credit.

When the market is good, anyone can ship goods; when the market fluctuates, the competition is who has stronger risk control, who has stricter contracts, and whose customers are more authentic.

A 30% deposit is just the first threshold, not a talisman.

The real amulet is those three sentences:

If the final payment is not in the account, the bill of lading will not be sold. The harder it is to transfer the car, the harder the deposit will be collected. The first order for a new customer must be paid in full.

Source: Xiong Yu, digital automobile export

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