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What Is Included on a Purchase Order for a Car?

by Michael Ryan

The purchase order for a new or used car is a binding bill of sale that must be signed by both the buyer and seller. It itemizes the cash selling price, documentation fees, sales taxes, registration fees, plate fees, rebates and any down payments made by the buyer.

Features

The purchase order for a car highlights all charges related to the transaction. A purchase order may also itemize trade-in information and other promises made by the seller.

Benefits

The purchase order provides binding proof of what was promised at the time of delivery of a new or used car, as well as the terms and conditions surrounding the sale.

Types

Dealerships are required to use purchase orders when completing sales, as they allow the state to determine how much sales tax must be paid. In private party transactions, the title can serve as a purchase order, but a separate purchase agreement is always beneficial.

Significance

If a dealership promises to repair a dent or offers free oil changes, having these promises in writing on the purchase order will ensure that promised services are completed.

Warning

Never sign a purchase order for a car if there are blank spaces, as the seller may change information after it is signed. Make sure all blank spaces are filled with zeros or crossed out before signing the document.

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