FOB and CIF are two common pricing terms in car export. Learn exactly what each one covers so you know what you're paying for.
Why This Matters.
When you see a price listed for a used car from Japan, it is almost always shown as either FOB or CIF. These two terms tell you exactly what is included in the price — and what you will still need to pay for separately. Understanding the difference can save you from surprise costs.
What Does FOB Mean?
FOB stands for **Free on Board**. This means the price covers the cost of the vehicle plus getting it loaded onto the ship at the port in Japan. It does **not** include:
- Ocean freight (the cost of shipping the car to your country)
- Marine insurance
- Import duties, taxes, and port fees in your country
With FOB pricing, you (or your local agent) arrange and pay for the shipping and insurance separately.
What Does CIF Mean?
CIF stands for **Cost, Insurance, and Freight**. This price includes:
- The cost of the vehicle
- Ocean freight to your destination port
- Marine insurance during transit
CIF does **not** usually include import duties, taxes, or fees charged by your own country's customs authority — those are always paid locally, no matter which pricing term you use.
Which One Should You Choose?
| | FOB | CIF |
|---|---|---|
| Vehicle cost | Included | Included |
| Loading at Japan port | Included | Included |
| Ocean freight | Not included | Included |
| Marine insurance | Not included | Included |
| Import duties/taxes at destination | Not included | Not included |
FOB can work well if you already have a trusted freight forwarder in your country and want to control shipping costs yourself. CIF is often simpler for first-time buyers, since the exporter handles freight and insurance for you, and you get one clear all-in price.
A Few Tips
- Always ask your exporter to confirm, in writing, exactly what is and isn't included in your price.
- If you're quoted CIF, ask which shipping line and route will be used, and get the insurance coverage details.
- If you're quoted FOB, get freight and insurance quotes from your forwarder before you commit, so you know your real total cost.
- Remember: neither FOB nor CIF includes the taxes and duties your own country will charge on import. Budget for those separately.
Final Thoughts.
Neither term is automatically "better" — it depends on whether you want to manage shipping yourself or have it handled for you. The most important thing is knowing exactly what your price includes before you pay.