BUYING FROM CHINA · REVIEWED 2026-08-24
Stock vs Factory-Order Vehicles: A Guide for Overseas Dealers
A stock vehicle should refer to a specific unit or identifiable batch that is claimed to exist, while a factory order is a request for a vehicle that has not yet been finally allocated. Stock can offer earlier VIN and condition verification, but it is not automatically export-ready. A factory order may offer more configuration choice, but VIN, production date, timing and sometimes price remain subject to the written order terms and later confirmation.
DIRECT ANSWER
What buyers should remember
- Treat ‘stock’ and ‘factory order’ as commercial workflow labels, not proof of availability or manufacturer acceptance.
- For stock, verify the VIN, location, condition, production information, document status and seller's right to supply the unit.
- For a factory order, put configuration, change rights, VIN timing, price adjustment, cancellation and deposit treatment in writing.
Stock and factory order at a glance
The useful distinction is whether a specific vehicle can already be identified and inspected.
| Factor | Stock vehicle | Factory-order vehicle |
|---|---|---|
| Vehicle identity | A VIN or identifiable batch should normally be available before final acceptance | A VIN may be assigned only after production or allocation |
| Configuration | Limited to the actual trim, colour and equipment of the available unit | Requested specification must still be accepted and produced |
| Condition evidence | Dated photos, odometer, diagnostics and physical inspection can be requested for the actual unit | Final inspection takes place after a specific vehicle is produced or allocated |
| Timing | May reduce sourcing time, but export documents and transport still require confirmation | Production and allocation dates should be described as estimates unless contractually guaranteed |
| Change risk | Substitution risk should be controlled by VIN and written acceptance | Specification, timing, allocation and price-change rules require explicit contract treatment |
1. What ‘stock’ should mean in a quotation
A stock claim should be supported by current evidence connected to a specific vehicle or batch.
‘In stock’ does not by itself mean cleared for export, located at the named delivery point, accepted by a carrier or eligible for import in the buyer's country.
The buyer should ask whether the seller controls the identified unit or is repeating information received from another party.
- Exact model, trim, powertrain and steering configuration
- VIN list or written timing for VIN disclosure
- Current physical location
- Production information and registration status
- Dated exterior, interior, dashboard and odometer evidence
- Vehicle condition and any storage or movement history disclosed by the seller
- Quantity actually available for the inquiry
- Date on which availability was last reconfirmed
- Export and transport documents still outstanding
2. What a factory order should define
A factory-order agreement should separate the requested configuration from what has been formally accepted and allocated.
A factory-order label is not proof that the manufacturer has accepted an order. The seller should distinguish an inquiry, reservation, dealer allocation, accepted production order and completed vehicle.
- Exact requested trim, powertrain, colour and options
- Whether substitutions require the buyer's written approval
- Estimated production and allocation window
- When a VIN is expected
- When the price becomes fixed and what can trigger repricing
- Deposit amount, purpose and refund conditions
- Latest acceptable delivery date
- Inspection and rejection rights after allocation
- Remedy if the ordered specification cannot be supplied
3. Compare commercial risk, not only lead time
The better option depends on which uncertainties the buyer can control in writing.
A lower factory-order price can carry allocation or timing risk. A higher stock price can include ageing, storage or limited-choice risk. Compare the total confirmed scope rather than the headline unit price.
| Buyer priority | Usually favours | Still needs confirmation |
|---|---|---|
| Earlier identity and inspection | Stock | VIN, location, condition and document readiness |
| Specific colour or configuration | Factory order | Buildability, substitution rules and final specification |
| Shorter preparation target | Stock | Export clearance, inland delivery and carrier booking |
| Larger matching batch | Factory order or confirmed batch stock | Allocation quantity, production consistency and delivery sequence |
4. Put vehicle conformity and inspection in the contract
The contract should define what counts as the correct vehicle and how the buyer checks it.
The UNCITRAL CISG may apply depending on the parties, applicable-law rules or contractual choice. Among other matters, it addresses delivery of goods that conform to the contract's quantity, quality and description and the buyer's examination of goods. The parties should obtain legal advice on the law governing their transaction rather than assuming that the CISG automatically applies.
- VIN or VIN-allocation procedure
- Quantity, quality, trim and description
- Permitted odometer range
- Production-date requirement
- Required accessories and documents
- Inspection timing and method
- Process for reporting a mismatch
- Replacement, repricing, cancellation or refund mechanism
5. Use payment milestones that match evidence
Payment should follow the risk points defined for the chosen supply route.
Incoterms® rules allocate delivery obligations, costs and risk; they do not decide whether a factory deposit is refundable, when legal ownership passes or what specification changes are acceptable.
- For stock, connect final payment to VIN-level evidence and the agreed inspection result
- For a factory order, state what evidence supports the initial deposit and later allocation payment
- Do not describe a deposit as refundable unless the contract explains when and how
- Confirm the payment beneficiary against the contracting seller
- Keep export delivery and Incoterms® risk transfer separate from factory allocation
BUYER QUESTIONS
Short answers before you inquire
Does ‘in stock’ mean the vehicle can be exported immediately?
No. The specific vehicle, export documents, named delivery point, customs process and carrier acceptance still need confirmation.
When should a VIN be available?
A stock unit should normally be identifiable before final acceptance. For a genuine factory order, the contract should state when VIN allocation is expected and what happens if allocation does not occur.
Is a factory-order deposit automatically refundable?
No. Refundability depends on the written contract, applicable law and the reason the order does not proceed.
Can a supplier substitute another vehicle from stock?
Only under the agreed terms. Any change in VIN, trim, colour, production date or specification should require the level of buyer approval stated in the contract.
SOURCES AND REFERENCES
Evidence behind this guide
- United Nations Convention on Contracts for the International Sale of GoodsUnited Nations Commission on International Trade Law · accessed 2026-08-24
- UNCITRAL Digest of Case Law on the CISGUnited Nations Commission on International Trade Law · accessed 2026-08-24
- Incoterms® 2020International Chamber of Commerce · accessed 2026-08-24
- Road vehicle — Vehicle identification number (VIN), GB 16735-2019State Administration for Market Regulation and Standardization Administration of China · accessed 2026-08-24
Carrier references describe that carrier's own published requirements and are not universal acceptance rules. Published guidance is educational and does not replace transaction-specific legal, customs, tax or destination-market advice.