A Guide on How to Pay at Carsauc.com
Which Currency Should I Use?
The prices of the cars listed at Carsauc.com are displayed in the currency that is commonly used in your country. This is done to provide you with a clear understanding of the cost in your familiar currency.
When you proceed to the payment page to finalize your purchase, the displayed prices will be automatically converted to United States Dollars (USD) using the current exchange rate.
After you have selected and ordered your desired vehicle, you will receive an email confirmation of your order. Additionally, a member of our Customer Service team will reach out to you to discuss and formalize the terms of the purchase agreement. This step is essential to ensure that both parties are in agreement and understand the terms of the transaction.
Upon reaching mutual agreement on all terms outlined in the contract, and after the contract has been signed by both parties, we will initiate the payment process. This includes processing the payment for the vehicle using the agreed-upon method of payment, ensuring a smooth and secure transaction for both buyer and seller.
How Does The Payment Process Work?
There are generally 2 steps:
1. you’re expected to pay a 30% deposit to secure your order after the contract is signed.
2. the remaining 70% should then be paid before the car is loaded onto shipping vessels.
● Carsauc will load the car onto the vessels only after receiving full payment.
What are The Available Payment Methods?
1. Bank-to-Bank Transfer (T/T) – Recommended
In this process, the sender initiates the transfer by providing their bank with instructions to send a specific amount of money to the recipient’s bank account. The sender’s bank then electronically debits the sender’s account and transfers the funds to the recipient’s bank account.
Telegraphic transfers are often used for international transactions due to their speed and efficiency. The sender provides the recipient’s bank details, including the account number and the bank’s SWIFT code, to ensure that the funds are directed to the correct account. Once the transfer is initiated, it typically takes a few business days for the funds to be credited to the recipient’s account, depending on factors such as the banks involved and any currency conversion requirements.
2. Letter of Credit
A letter of credit (L/C) is issued by a bank to guarantee suppliers an agreed sum on the buyer’s behalf, when an order has been completed and has fulfilled predetermined conditions such as quality inspection requirements and product specifications.
In general, suppliers are more than happy to accept LCs as it’s considered one of the safest ways to pay, so it reduces the supplier’s risk. LCs also safeguard your rights as a buyer because your supplier has to deliver the order before receiving payment.
The disadvantage is that LCs are document-heavy and the most expensive payment method, so they’re typically more suitable for large businesses with transactions over $50,000, rather than small- and medium-sized businesses.
If you eventually decide on this payment method, bear in mind that there are different LCs, so you should seek professional guidance on choosing the right one for secure transactions.
3. Western Union
To send money through Western Union, all you have to do is to head to a post office or a grocery store that allows Western Union payments. You’ll have to detail who the payment is for, and will be given a control number when you pay the cashier. This control number can then be passed on to your supplier. This payment can be used for small orders and samples, or if you’re rushing for time, but remember the risks involved and how costly it can be.
4. Wise
To transfer money through Wise, simply:
● create an account online and log in
● key in the amount you wish to transfer, along with your supplier’s details
● make a payment to Wise through a bank transfer, or a credit or debit card
● wait for Wise to send the money on your behalf
Your chosen recipient doesn’t need to use this service as the funds will be directly deposited in receiver’s bank account within a couple of business days.
5. Debit or Credit Cards
Another way of transferring money is through your debit or credit card. While this is a secure way of making payment, this mode of payment isn’t widely accepted as suppliers are charged to receive the payment. Moreover, debit and credit card fees are generally very high, with exchange rate markups.
6. ESCROW
The term escrow refers to a contractual agreement where a third party facilitates transactions between a buyer and a seller. In this agreement, the buyer will send payment to a neutral party – the escrow service – before the supplier starts work. When the supplier delivers the goods, the escrow service will release payment to the supplier. If there are any disputes, the escrow service will act as a mediator to help both parties come to an agreement. This helps to protect buyers from unethical suppliers who take the money without delivering the goods, and safeguards suppliers from losing money.
Escrow services usually charge 5% of the transaction amount to the supplier which is handed over to the buyer. Although it’s a safe payment method that requires minimal paperwork, the buyer has to pay upfront, so escrow services aren’t the most popular ways- they’re typically only used for small orders and low-value transactions due to the additional costs involved.
7. Third-party Sourcing Agent
A third-party sourcing agent specialises in procuring goods from overseas as well as managing the entire sourcing process, from shortlisting and verifying suppliers, to discussing payment terms, arranging quality checks, and shipping the goods.
If your sourcing agent has an office in Hong Kong, you can steer clear of an international transaction and its risks. Experienced sourcing agents work with credible suppliers in mainland China, reducing your chances of encountering a fraudulent supplier. Although a third-party sourcing agent fee may be high, your agent can act on your behalf to negotiate for lower product prices from your supplier.