How to Pay for a Japanese Used Car: T/T, L/C and Other Payment Methods

When buying a Japanese used car from Japan, one important question is: How should I pay?

For buyers in Guyana, international payment may feel unfamiliar. Common methods include T/T (Telegraphic Transfer), L/C (Letter of Credit), bank transfer and other agreed arrangements.

T/T – Telegraphic Transfer

T/T is a bank-to-bank international transfer. The buyer sends payment to the exporter’s bank account in Japan.

The payment schedule depends on the agreement. It may require full payment or a deposit followed by the balance.

Advantages:

• Simple and easy to understand
• Usually lower cost than L/C
• Can be processed quickly
• Convenient for repeat customers

Risks:

• Payment is often made before receiving the vehicle
• International transfers can be difficult to reverse
• Bank fees may apply

Always check the exporter’s company information, invoice, vehicle details, payment terms and bank account before sending money.

L/C – Letter of Credit

An L/C is a bank-based payment arrangement. The buyer’s bank issues the L/C, and the seller receives payment when the required documents meet the agreed conditions.

Advantages:

• More formal and structured
• Useful for larger business transactions
• Banks check the required documents

However, an L/C does not mean the bank has inspected the vehicle or guarantees its condition.

Disadvantages:

• More complicated
• More bank fees
• More time and paperwork

For one used car, an L/C may not always be practical.

T/T vs L/C

	T/T	L/C
Convenience	High	Lower
Procedures	Simple	More complex
Cost	Generally lower	Generally higher
Suitable for	Individual buyers & SMEs	Larger commercial transactions

For many individual buyers and small businesses, T/T is a practical option.

Why We Prefer T/T

At JTG Export, we prefer T/T bank transfer because it keeps the payment process simple, fast and cost-effective.

Before paying, you should clearly know:

• Vehicle and agreed price
• Shipping terms
• Included and excluded costs
• Payment deadline
• Receiving bank account
• Documents you will receive

How T/T Works

1. Choose your vehicle – Tell us your preferred model, budget, year, mileage and intended use.
2. Confirm the vehicle and price.
3. Receive the invoice and bank details.
4. Make the T/T payment through your bank in Guyana.
5. Payment is confirmed.
6. The vehicle is prepared and shipped according to the agreed FOB, CFR/C&F or CIF terms.

How to Protect Yourself

Before sending money:

• Check the exporter’s website, address, business information and history.
• Check that the invoice clearly shows the buyer, seller, vehicle, price and terms.
• Make sure the beneficiary name matches the company.
• Verify any unexpected changes to bank details directly with the exporter.
• Keep invoices, transfer receipts, messages and shipping documents.

T/T is only one part of the transaction. The most important thing is knowing who you are paying, what you are paying for, what is included and what happens after payment.

At JTG Export, we can explain the vehicle price, shipping terms, payment process and other relevant costs before you proceed.

Looking for a Japanese used car? Tell us your preferred vehicle, budget, year, mileage and intended use.