Question 1

What does FOB (Free on Board) mean?

Accepted Answer

FOB (Free on Board) is an international trade term (Incoterm) meaning the seller's responsibility ends once the goods are loaded on board the vessel at the port of origin. For car imports from China, the FOB price includes: the vehicle itself, loading at the Chinese port, and export customs clearance. It does not include: international shipping freight, marine insurance, or import-side costs (duties, taxes, destination port charges). DriveSino lists vehicle prices as FOB (at Chinese port), and we provide a separate shipping quote to your destination. This transparent breakdown lets you see exactly what you're paying for at each stage.
Worked example: a BYD Atto 3 listed at $16,000 FOB means $16,000 covers the car itself, loaded and cleared for export at the Chinese port (e.g. Shanghai or Guangzhou). Freight to your destination port, marine insurance, and your country's import duty are calculated and quoted separately, on top of that $16,000.

Question 2

Why do car exporters quote prices as FOB instead of a final delivered price?

Accepted Answer

Shipping cost varies enormously by destination — freight to a nearby port in Southeast Asia can be a fraction of freight to South America or Southern Africa. Quoting FOB lets a buyer compare the actual vehicle price apples-to-apples before adding destination-specific shipping and duty, which differ for every country.

Question 3

Is FOB or CIF better for a buyer?

Accepted Answer

Neither is inherently "better" — they're just different points in the cost breakdown. FOB gives you the clearest view of the vehicle's real price since freight and insurance are shown separately. CIF bundles freight and insurance into one number, which is what customs authorities usually use to calculate import duty. DriveSino provides both so you have the full picture.