A fleet buyer in Lima, Peru, needed 15 left-hand-drive electric vehicles for a corporate leasing program. He had received quotes from several Chinese suppliers, but they all looked different: some showed a low factory price, others a higher "all-in" number. He didn't know which was the real cost. This is the story of how he learned the difference between FOB and CIF pricing—and why it matters for every importer.
Requirement
In early 2026, the buyer—let's call him a mid-sized fleet operator—needed to replace aging vehicles with electric models. He wanted a mix of compact SUVs and sedans, all left-hand drive, with a range of at least 400 km. His budget was tight, and his board demanded a clear landed cost per vehicle. He had identified a few models from brands like BYD, Geely Galaxy, and GAC Aion, but when he compared supplier quotes, he saw two very different numbers: one labeled "FOB" and another "CIF." The FOB price was about 20% lower, but it didn't include shipping. The CIF price was higher but seemed to cover more. He wasn't sure which to use for budgeting. He also needed to know about import duties, VAT, and homologation—the process of certifying a vehicle meets local safety and emissions standards. Without that, he couldn't register the cars. He reached out to China EV Export via WhatsApp, asking for a clear breakdown.
Sourcing
The team at China EV Export responded within 24 hours. They explained that FOB (Free On Board) means the price of the vehicle loaded onto the ship at the Chinese port—it includes delivery to the port and export clearance, but not ocean freight or insurance. CIF (Cost, Insurance, and Freight) includes the vehicle cost, marine insurance, and freight to the destination port. But neither includes import duty, VAT, or local clearance fees. For a true landed cost, you need to add those. The buyer learned that for Peru, import duty on EVs is 0% (incentive for electric vehicles), but VAT is 18%, and there are additional fees for customs clearance and homologation. The team provided a sample CIF quote for a BYD Dolphin to Callao port: FOB $18,500, freight $1,200, insurance $150, CIF $19,850. Then adding VAT (18%) and clearance ($500) gave a landed cost of about $23,923. That was the number he needed. The buyer also asked about used EVs. China EV Export had 132 used EVs in stock, including models from NIO, XPeng, and Li Auto. He considered a used 2025 Li Auto MEGA, but ultimately decided on new units for warranty reasons.
Sample
Before committing to 15 vehicles, the buyer requested a sample—one unit to test the process and verify quality. China EV Export arranged for a used 2025 Deepal G318 to be shipped to Lima as a sample. The sample was a left-hand-drive electric SUV with a range of about 500 km. The CIF price for the sample was $22,000, including freight and insurance. The buyer paid a deposit via bank transfer, and the vehicle was shipped RoRo (Roll-on/Roll-off) from Shanghai. The sample arrived in 35 days. The buyer was impressed with the condition and the documentation: invoice, packing list, bill of lading, and certificate of origin were all provided. He cleared customs with his broker, paying VAT and a small clearance fee. The total landed cost for the sample was $26,500. This gave him confidence to proceed with the full order.
Production
For the full order, the buyer chose a mix of 10 BYD Dolphin and 5 GAC Aion S. Both are left-hand drive and available for export. Since these were new vehicles, "production" meant allocating stock from existing inventory and preparing export documents. China EV Export confirmed the order with a deposit of 30%, and the balance was due before shipment. The team locked the stock and began preparing the export documentation, including the certificate of origin and homologation papers. The buyer appreciated the transparent timeline: 10 days for document preparation, then shipment. The total FOB price for the 15 vehicles was $277,500. The CIF price to Callao was $297,750 (including freight and insurance). The buyer now understood that FOB was the starting point, but CIF gave him a more predictable total for shipping.
Delivery
The vehicles were shipped via RoRo from Shanghai to Callao. The transit time was 32 days. China EV Export provided the full document set: commercial invoice, packing list, bill of lading, and certificate of origin. The buyer's customs broker used these to clear the shipment. Import duty was 0% for EVs in Peru, but VAT was 18% on the CIF value plus duty. The VAT amounted to $53,595. Clearance fees were about $1,200. The total landed cost for the 15 vehicles was $352,545, or $23,503 per vehicle. The buyer was relieved to have a clear number. He noted that if he had only used the FOB price, he would have underestimated his total cost by about 27%. The delivery was smooth, and all vehicles arrived in good condition.
Outcome
The fleet buyer now uses CIF landed cost for all his import budgeting. He shares this lesson with other importers: FOB is useful for comparing factory prices, but CIF plus duty and VAT is what you actually pay. For Peru, the landed cost was about 27% higher than FOB. In other markets, the difference can be 20–60% depending on duties and taxes. China EV Export provided a detailed CIF quote within 24 hours, which helped him secure board approval. He plans to order another 20 vehicles next year. For importers in Latin America, MENA, and CIS, understanding FOB vs CIF is the first step to avoiding surprises. Always ask for a full landed-cost breakdown, including freight, insurance, duty, VAT, and clearance. And remember: a 24-hour quote turnaround can save you weeks of uncertainty. Contact China EV Export via WhatsApp for a personalized CIF quote to your port.