Next to the loan agreement, the car purchase order is one of the most important documents in the car buying process. It is your agreement with the dealer on the final cost of the vehicle. Going through the items line by line ensures that you agree with the final figure, which will be the amount you will pay in cash or financial form.

Purchase orders to purchase your car typically display your personal information at the top and the various dollar amounts added to and subtracted from the vehicle’s sales price in a linear top-to-bottom format. The top figure is usually the selling price of the car. The following are the most common items you will see added or subtracted:

• Refunds
• Discounts
• Commercial Assignment
• Guaranteed Asset Protection (GAP)
• Extended warranty
• Additional protection (eg paint, tires, etc.)
• Any additional equipment or custom parts added to the vehicle
• Distributor fee
• Taxes
• Registration and title fees
• Exchange payment
• Deposit

Before you get involved with the details of the vehicle purchase or financing, review the purchase order and verify that 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, a refund and a discount – give it a try. You never know. Dealer, registration and title fees are generally non-negotiable. The reward for the exchange is also not. Again, any changes must result in a new paper purchase order.
Remember, take the time to review and fully understand what constitutes the end result. Once satisfied with the purchase order, sign it and continue with the purchase or financing of the vehicle.