Understanding Purchase Order For Buying Your Car
Next to the loan contract, the car purchase order is one of the most important documents of the car-buying process. It is your agreement with the dealer on the final cost of the vehicle. Reviewing the items line by line ensures you are in agreement with the bottom line figure, which is what will be the amount you will pay in cash or finance.
Purchase orders for buying your car usually display your personal information on the top and the various dollar amounts that add and subtract to the sales price of the vehicle in a linear format from top to bottom. The top figure is usually the sales price of the car. The following are the most common items you will see added or subtracted:
• Trade allowance
• Guaranteed Assets Protection (GAP)
• Extended Warranty
• Additional protection (ex. Paint, tires, etc)
• All additional equipment or custom parts added to the vehicle
• Dealer fee
• Registration and title fees
• Trade-in payoff
• Down payment
Before getting involved with the details of purchasing or financing the vehicle, review the purchase order and verify no additional products or services were added. Have those items removed and a new car purchase order printed.
This would also be the last chance for you to negotiate a better trade allowance, rebate and discount-give it a shot. You never know. The dealer, registration and title fees are usually not negotiable. The payoff on the trade-in is not either. Again, any changes should result in a new purchase order printed.
Remember, take time to review and fully understand what makes up the bottom-line. Once satisfied with the purchase order, sign it and move on to purchasing or financing the vehicle.