A dealer can sell every vehicle at the planned margin and still run short of cash before the shipment is released. Vehicle payments, freight, import charges and customer receipts occur on different dates. Choosing between presales and stock purchases therefore requires a cash calendar as well as a sales forecast.
Presales can reduce the amount financed by the dealer, but they introduce customer delivery obligations and refund exposure. Stock orders give customers something tangible to inspect, while leaving the dealer to carry the full inventory risk. The best initial arrangement depends on how reliably the dealer can verify eligibility, deliver the exact specification and support the car after handover.
Build a calendar from actual payment milestones
Use the exporter’s written schedule and destination broker’s estimate. Do not enter “balance on arrival” if the contract requires payment before release in China. Likewise, do not assume retail buyers will pay immediately after the vessel arrives when registration or finance approval remains outstanding.
| Milestone | Likely cash requirement | Evidence before committing |
|---|---|---|
| Vehicle allocation | Deposit or purchase commitment | Exact variant, condition and allocation terms |
| Inspection and export preparation | Balance, inspection and documentation costs | VIN list and agreed inspection result |
| Shipment | Freight, insurance and booking charges | Booking acceptance and contracted route |
| Destination release | Customs, local fees and inland delivery | Broker’s calculation and clearance readiness |
| Retail delivery | Preparation, registration and customer support | Handover readiness and customer payment conditions |
The ICC explanation of Incoterms rules concerns delivery tasks, costs and risk. A trade term does not substitute for the separate payment schedule, customer cancellation terms or a promise of retail availability.
An illustrative funding comparison
Consider six cars with a hypothetical all-in cash requirement of USD 18,000 each before retail delivery. Total requirement is USD 108,000. These figures are invented for planning; they are not vehicle quotations or destination tax estimates.
If six presale customers each pay USD 4,000, the dealer receives USD 24,000. The apparent external funding gap falls to USD 84,000, before overhead and contingencies. However, customer deposits are obligations attached to future delivery. They should not be treated as free profit or spent on unrelated stock.
If two customers cancel and their contracts require immediate repayment, USD 8,000 must be available. A dealer relying on all deposits to fund customs release can face a cash shortage precisely when the cars arrive. Model that refund event separately from the expected sale.
For a stock order without customer deposits, the initial funding requirement is the full USD 108,000. Sales may begin sooner after arrival if buyers can inspect available vehicles, but no such timing is guaranteed. A three-month holding period also adds financing, storage and preparation costs to the margin calculation.
Match commitments to facts the dealer controls
A responsible presale offer identifies the model year, maximum three offered configurations, destination specification, indicative delivery window and the events that can change that window. It also explains how substitutions, damage, failed import approval and cancellation will be handled under the applicable local consumer rules.
Avoid a fixed handover date based solely on the vessel schedule. Clearance, road approval and customer registration may have their own dependencies. A shipping ETA can support a planning window; it is not the same as a customer-ready car.
For stock orders, cap exposure by a realistic monthly sales rate. If the dealer has evidence for two sales per month, a twelve-car order implies roughly six months of inventory before allowing for different trim demand. Buying more colours does not necessarily create more buyers.
Use a staged first order
A practical first batch combines a demonstrator with a small number of clearly documented customer orders. The demonstrator verifies local charging, language settings and the handover process. Customer orders then use the same proven specification where possible, reducing parts and support complexity.
Maintain a weekly cash sheet with opening cash, contractual payments, recoverable taxes shown separately, confirmed customer receipts and the largest plausible delay cost. Run at least a slower-sale scenario and a failed-release or refund scenario. The purchase decision should survive both without depending on an unsupported resale promise.
Prepare an order that fits your funding capacity
Send the destination, planned quantity, target retail timing and preferred deposit structure through our contact page. Request a vehicle payment schedule alongside the logistics scope, so your dealer cash plan uses the same milestones as the export order.