The car sales invoice is a document listing all the features and costs associated with buying a vehicle. It allows the buyer and seller to get a clear view of each item included with the vehicle and see any fees or taxes added to the final price. Do not confuse this with an invoice price, which is the amount the dealership paid the manufacturer for a vehicle.
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Vehicle Bill of Sale – To be used as a contract between the buyer and seller for a motor vehicle.
A car sales invoice typically includes two prices. The first is the Standard Vehicle Price, the lowest price a car will sell for, and the Vehicle Price with Optional Equipment (heated and leather seats, GPS, etc.), typically costs significantly more.
- List Price – Usually a negotiable value, sometimes referred to as the MSRP (manufacturer’s suggested retail price), which is the recommended price that the manufacturer tells the dealership to price the vehicle. Because dealerships often pay less than what is seen on the sticker, car buyers shouldn’t be paying more than the list price as well.
- Doc (documentation) Fee – A fee a dealership charges for drafting up the paperwork and prepping the car for final delivery. Check with your state to see the maximum amount allowed to be used when charging a doc fee.
- State Taxes – A percentage of the list price. Some states, like Florida, do not have a vehicle sales tax (although most do).
- Registration Fee – This should only be listed if the dealership plans on registering the car for the buyer.
- Car Details – As it’s easy to get caught up in the amounts calculating the final price, it’s important to check that the basic details match the information on the vehicle.
A car invoice is used when a manufacturer sells a car to a dealership. It will typically include the price of rebates, dealer incentives, and dealer holdback.