How to Read a Used Truck Quotation
The Total Cost Beyond the Vehicle Price
When you compare used trucks from Japan, it is natural to look at the vehicle price first. But the vehicle price is only one part of what you will pay. This article explains each line of a quotation, the costs that are not on it, and how to compare quotations by the total cost.
The Lines on a Quotation
A quotation from a Japanese exporter usually shows these items:
| Item | What it means |
|---|---|
| Vehicle price (FOB) | The truck itself, delivered and loaded on the ship at the Japanese port |
| Ocean freight | Shipping from Japan to your destination port, such as Dar es Salaam |
| C&F price | Vehicle price + ocean freight. The amount you pay to the exporter |
We quote all our trucks on C&F terms, without marine insurance. For the difference between FOB, C&F, and CIF, see What Is C&F Price? The Difference Between C&F, CIF, and FOB.
Check These Details on Every Quotation
- Price term and port: is it FOB or C&F, and to which port? "C&F Dar es Salaam" and "C&F Mombasa" are different prices.
- Currency: most quotations are in US dollars. Make sure you compare in the same currency.
- Stock number and chassis number: confirm that the quotation is for the exact truck you checked.
- Model year: the age of the truck affects duty in Tanzania, so check it on the quotation.
- Validity: used trucks are one-of-a-kind. Check how long the price and the truck are held for you.
- What is included: ask whether the pre-shipment inspection and the courier for the original documents are included.
Costs That Are Not on the Quotation
The C&F price covers the truck until it arrives at the port. The following costs are paid separately, and together they can be a large share of the total:
- Bank transfer charges: your bank's charge for the Telegraphic Transfer (T/T).
- Import duty and taxes: import duty, excise duty for older vehicles, VAT, and levies charged by the Tanzania Revenue Authority (TRA).
- Port charges: port handling and the shipping line's local charges at the destination port.
- Clearing agent fee: the fee for the agent who clears the truck through customs.
- Storage: if clearance is delayed, the port charges storage by the day.
- Registration: registration tax and number plates in Tanzania.
- Inland transport: from the port to your city.
- First maintenance: oil, filters, tyres, or a battery that you replace before putting the truck to work.
In our Canter reference example, duties, taxes, and local charges in Tanzania add about 70% on top of the C&F price.
The Cheapest Truck Is Not Always the Cheapest to Own
Two quotations can look very different and still end up close in total cost:
- An older truck may have a lower price but be charged additional duty because of its age.
- A truck in poor condition may need repairs soon after arrival, which adds cost and lost working days.
- A low price with high freight can cost more than a higher price with lower freight. Always compare the C&F price, not the vehicle price alone.
A very low price can also be a warning sign. See Common Scams When Buying Used Trucks from Japan.
How to Compare Quotations Fairly
- Put every quotation on the same terms: C&F to the same port, in the same currency.
- Check that each quotation is for a specific truck, with its stock number, model year, and chassis number.
- Add the costs that are not on the quotation, using the same estimates for each truck.
- Compare the total landed cost, and then the condition of each truck.
Your clearing agent can give you an estimate of duties and local charges for a specific truck before you pay.
Conclusion
A quotation tells you what you pay to the exporter, but not everything you pay to put the truck on the road. Read each line, check what is not included, and compare trucks by their total cost.
If anything on our quotation is unclear, please ask our staff by WhatsApp. We will explain each item before you decide.
