Two Incoterms dominate dealer vehicle purchases from China: FOB (Free On Board) and CIF (Cost, Insurance and Freight). Choosing between them is mostly a question of who is better placed to buy ocean freight and insurance—you or your supplier.

What each term covers

  • FOB: the supplier's price covers the vehicle, export clearance and delivery on board at the Chinese port. You arrange and pay ocean freight and insurance; risk transfers when the cargo is on board.
  • CIF: the supplier also books and pays freight and minimum insurance to your named destination port. Risk still transfers at loading—CIF is a cost arrangement, not a risk one, which surprises many first-time importers.

How to compare quotes

Convert everything to the same landed point. A fair comparison is: FOB price + your freight quote + your insurance vs the CIF price. If your own freight rates are competitive (regular volume, good forwarder), FOB often wins; for occasional buyers, supplier CIF rates on high-volume lanes are usually sharper.

A worked example

Suppose a supplier quotes an SUV at USD 16,800 FOB Shanghai or USD 17,500 CIF Jebel Ali. If your forwarder offers the same lane at USD 550 per unit including insurance, FOB lands at 17,350—slightly better, and you control the schedule. If your best rate is 800, CIF is the cleaner deal.

Practical tips

  • Always name the destination port in the quote (CIF Jebel Ali, not just CIF).
  • Check what insurance level a CIF quote includes; upgrade if needed.
  • Put demurrage responsibility and document timelines in the contract.

CBT Auto Export quotes both FOB and CIF with destination-port options, so dealers can compare on equal terms before ordering.