Identify exactly who is selling what
Record the full contracting entity, authorised signatory, buyer details and offered VIN. Describe production identity, engine, drivetrain, condition and supplied equipment without unsupported foreign-trim equivalence. Attach the agreed vehicle file and quotation version. If the seller offers sourcing services rather than selling an already allocated vehicle, state that distinction and what happens before a candidate is approved. Use the seller and ownership verification process independently. A vehicle advert, chat profile or invoice logo does not establish the authority of a person to bind the named company or dispose of the car.
Define the reservation amount and what it buys
Ask whether the payment reserves a specific VIN, funds inspection, initiates sourcing or performs another defined task. Specify the amount, currency, recipient, due date and evidence of receipt. Record whether it forms part of the purchase price and which costs remain separate. Do not accept an automatic refund promise that is absent from the actual terms. Ask how a failed inspection, unavailable vehicle or rejected specification is handled. The responsible legal adviser should assess the agreement’s wording and enforceability; a commercial preference for refundable reservation does not make it a statutory right in every transaction.
Set the inspection and acceptance boundary before spending
Agree the assessor, test scope, access, reporting deadline and the buyer’s opportunity to review findings. State what findings trigger further investigation, repair, renegotiation or rejection. The whole-car checklist helps describe the technical brief but is not itself a contract clause. Attach material inspection limitations and confirm how an incomplete test affects approval. If work is performed after the first assessment, require the relevant evidence and retest before the next payment stage. Avoid undefined wording such as excellent condition when the parties have not agreed what that means for this used vehicle.
Separate delivery terms from payment and ownership
An Incoterms rule addresses defined transport-related responsibilities; it does not settle every contract issue. ICC specifically distinguishes such rules from payment arrangements and transfer of title. Write the chosen rule, edition and named place precisely, then address payment milestones and ownership separately with qualified advice. The FOB/CIF comparison helps clarify a quotation’s transport basis. Do not assume a CIF offer means all destination charges are included or that payment itself completes every transfer requirement. Keep the exact vehicle and commercial documents consistent at each handover.
Explain changes, cancellation and substitution explicitly
Ask what happens if the inspection identifies defects, the vehicle cannot be exported, freight changes or the seller proposes another VIN. Specify who must approve a variation and how revised amounts are recorded. Establish any cancellation costs, evidence requirements, refund timing and dispute route in terms reviewed for the transaction. A replacement car should receive its own identity and inspection approval, not inherit the earlier acceptance. Do not presume that a written deadline guarantees prompt recovery if a counterparty fails. Consider how practical enforcement and communication would work across the parties’ jurisdictions before paying an amount you cannot afford to lose.
Verify payment instructions through an established channel
Match the requested recipient to the agreed commercial arrangements and resolve inconsistencies before transfer. Treat changed account details as a new verification event, especially if they arrive through an unexpected message. Contact the counterparty through a previously verified route rather than the contact details supplied only in the change request. Keep sensitive identity and banking material within appropriate secure channels; do not send passwords or card details through an enquiry form. A receipt proves a transfer occurred, not necessarily that the car is allocated, ownership is clear or the recipient’s promises will be honoured.
Keep an approval file that another person can follow
Retain the signed agreement, quote version, VIN evidence, inspection reports, approved changes and payment receipts. Confirm which party carries out export and which supports the destination handover. The pre-shipment review checks condition after acceptance but does not replace contract review. If important questions remain unanswered, pause rather than rushing to secure a supposedly disappearing bargain. A sensible contract file makes responsibilities intelligible; it cannot eliminate counterparty risk or guarantee recovery. Obtain legal review before relying on terms governing refunds, ownership or cross-border disputes.
Decision record
Evidence checklist
- Named parties and authority
- VIN and quote version
- Reservation purpose and refund wording
- Inspection and substitution conditions
- Verified payment route and legal review
Buyer questions
Does paying a deposit automatically reserve a specific CX-5?
Not without clear allocation and written terms identifying the VIN and purpose of payment.
Does CIF determine when ownership transfers?
No. Address title and payment separately in the contract with appropriate legal advice.
Reference and inspection scope
ICC references provide commercial-contract context, not legal advice for this transaction. No universal refund right, ownership-transfer rule or enforcement outcome is asserted. Have actual terms reviewed by qualified advisers.
ICC model international sale contract: contract-structure reference
ICC Incoterms 2020 questions: payment and ownership exclusions
Verify the exact vehicle
Specifications vary by year and market. Match the VIN, vehicle documents, inspection findings and manufacturer service information before purchase.
