The process of buying a new car in China is the same for Chinese citizens and foreigners. A foreigner needs a passport, a valid visa and money before making a purchase.
A typical down payment for a new car in China can be anywhere from 20% to 50% of the total cost of the car, depending on the car model and dealership. Some may ask for a higher down payment simply because you are a foreigner or have a limited credit history in China.
A foreigner can pay for their new car in installments, but the foreigner must have a valid residence or work visa, a Chinese bank account, and a good credit history. The process can be quite complex and time consuming. Documents will be in Chinese and the Chinese version of any bilingual contract is the only valid one.
Once you find the car you need, the dealer will inform you about the purchase documents and installment payment options.
There are four main types of documents required:
1.Purchase Agreement: Describes the terms of sale, purchase price, payment method, delivery date, warranties, warranties, additional services.
2.Vehicle Purchase Invoice: Required for tax and registration purposes. This detailed invoice lists the make and model of the vehicle, its price, and additional fees or charges.
3.Loan Agreement: If you require financing, you will need to sign a loan agreement that sets out the terms of the loan, interest rate, repayment schedule, and default penalties.
4. Insurance Policy: The dealership may offer to arrange car insurance for you and you will need to sign a policy agreement if you decide to purchase one.
Your international driving license or a valid driving license that you have owned for many years in your home country will not give you the right to drive or register a car in China, so get a license first and then you can buy a car. China does not recognize any driver's license other than that issued in China.
There are exceptions for diplomatic personnel and some others, but for us ordinary people, we will need to go through the process of obtaining a Chinese driver's license. What's even better, it's actually not that hard to get a Chinese driver's license. It takes a little time, the process we have described earlier.
Once you've got your driver's license, you might want to practice by renting a car before making a big purchase. Renting a car in Shanghai, Beijing or most major cities in China is very easy. Make photocopies of your passport, visa, residence permit and driver's license.
You will then need documents related to the vehicle you have purchased, including an official photograph of the vehicle, proof of purchase or tax exemption, proof of origin of the vehicle; qualification certificate if domestic brand.
So, the documents required to buy a vehicle in China:
1.Original and photocopy of the buyer's passport
2.Chinese driving license
3.Original and photocopy of a valid visa 4.Certificate of registration at the place of residence