The car buyers order is a document that is essential to the purchase of an automobile from a dealership. This is often called bill a bill of sale because it details all of the conditions of the sale. When you purchase a car the car buyers order will list the car year, make model and the V.I.N. (vehicle identification number) or serial number. Your sales price, taxes and dealer fees will be listed along with any accessories and/or purchased dealer services such as extended warranty or service contracts.
The car buyers order is also used to write up a potential sale. For example if you were to leave a deposit on a car or have a dealer order a car for you. The details of the transaction would be listed and the deposit amount would be recorded and whether or not the deposit is refundable. When you come back at a later date to pick-up your car the buyers order will become your bill of sale or receipt of purchase.
Why a Car Buyers Order
You might call the car buyers order a glorified receipt and you would be correct. This single piece of paper contains the purchase details of the car you are buying and is required by law. The buyers order is not a finance agreement and it will not contain the terms of your auto loan if you are financing your car. However it will show the proceeds of the loan being used to purchase the vehicle. You should look over you car buyers order or bill of sale closely because you will need to sign this document which is a purchase contract. This is where the dealer will add on extra fees like dealer prep, life insurance, extended warranties and accessories.
Your sales tax will be included for your state and county, plus any other local taxes. There is also a section that details the charges fro your license plates and title work. All of these charges are totaled and then there will be a place for a down payment and a remaining balance it the car is being financed. The car buyers order contains all the information about your purchase of an automobile and any additional changes.
The car buyers order is often used by states that forbid a spot delivery or delivery behind the lender has approved the purchase. This is when you will leave a deposit of your vehicle of choice; submit a credit application, check your credit score and return after your loan is approved or return to get your deposit back from the dealer.
A Need for Car Buyers Order
Another very common use for the car buyers order is for financing through a lender that is not associated with the dealership. The buyer’s lender will require a car buyers order in order to approve the loan. This when a dealer will fax or email a buyers order to the lender for approval. Then after approval the lender issue a check to the dealership for the buyer and then the buyer will complete the paperwork and present the check to the dealership.
There you have it, the car buyers order can be called several names such as car buying receipt, bill of sale, proof of purchase or just plain receipt. One of the most important parts of buying a car and doing the paperwork is to thoroughly read and understand you car buyers order before you sign.