What Is a Used Car Sales Receipt?

A used car sales receipt is a document that details a purchase or a transfer of a car from the dealership to the buyer in writing. It includes the aspects of the transaction made between the two parties. The dealership or the seller also uses the receipt as documentation for internal order tracking. The customer also keeps the receipt for various purposes, including identification, return, and reimbursement of funds. It serves as the client’s proof of purchase regarding how much and what they bought. A receipt or a bill of sale is a legal document that provides a transaction record. It states that the seller transferred the rights of the vehicle to the customer.

According to the research done and data collected by I. Wagner from Statista, there are approximately 40.42 million used cars sold in America during 2018. It is an overwhelming number compared to the 17.21 million sold brand new cars. It presents that Americans are still aiming to be practical that exuberant in terms of automobiles.

The Components of a Used Car Sales Receipt

A used car sales receipt has different components. All the necessary information found in the sales document is a reference to the transfer of ownership. Since each state and each dealership or reseller uses various formats, it is significant to familiarize yourself with the information indicated in the receipt. Here are the components of a used car sales receipt to note.

Buyer Information: The receipt indicates the client’s information, including the full name, address, and contact details. The voucher includes the data, especially when the customer requires it for verification purposes.Seller Information: The seller must provide contact information of the business, along with the seller’s name. The information must be included for the safety of both parties if there are renegotiations involvedReceipt number: The paper must register the receipt number since it is a legally binding document. It also serves as an identification number for the seller when it comes to invoicing documents.Technical information about the vehicle: The technical information referred to includes the brand name of the car, the manufacturer, date of manufacture, and the color. These are vital details that will identify the automobile acquired by the buyer. The seller must include these for invoice and documentation, as well as for reference. The customer must make sure that the details in the section are accurate according to the vehicle acquired.Vehicle registration number: The vehicle registration number represents the plate number that is attached to the vehicle. The numbers shown in the receipt must show accuracy to the plate that is associated with the car. Also, ensure that the registration number is duly licensed and registered following the proper authorities.Vehicle identification number: The vehicle identification number (VIN) is a unique set of a combination of numbers and letters that identifies every vehicle upon its production. The VIN serves similar to a fingerprint, with no two cars having the same sequence. It is composed of 17 characters in random and without spaces. The VIN corresponds to a car’s unique features, specifications, and manufacturer. The distinct set of numbers can track the history, defects, recalls, registrations, warranty claims, and even insurance coverage of a particular vehicle.Mileage or odometer reading: It is essential to know the mileage reading of a used car because it affects the overall selling price. As a buyer, make sure that you properly check the mileage log of the vehicle before talking prices with the seller.The sum and type of payment: The sales receipt reflects the total amount of the vehicle purchased, along with the mode of payment the buyer chose to settle the fees. Most dealerships accept all forms of payment, including cash or credit, full or partial.Date of purchase and signatories: The receipt must contain the date on which the customer purchased and acquired the vehicle. The document also reflects the signature of the seller and the buyer as an acknowledgment of the agreement made.

How to Write a Used Car Sales Receipt

Upon knowledge of the details included in the sales receipt, a seller must know the steps in writing. It serves as a legal document for the new owner of the car and the seller, and making a mistake is not advisable for both parties. As a seller, it is essential to have a copy for records. The buyer also needs the documents for valid identification and transfer when necessary. Here are the steps in writing a used car sales receipt.

Step 1: Acquire a Medium for Creating the Receipt

A receipt can be written down or electronically made. Either one is an option for a seller. What’s important is that the template or the content of the receipt lists essential information regarding the sale made.

Step 2: State Information of Both Parties and Transaction Date

Include the buyer and the seller’s necessary information in the receipt. Include sentences that demonstrate the intent of the parties engaged in the agreement. Indicate which of the parties is the seller and the buyer. Include any information that both parties settled upon while the negotiation is in order.

Step 3: Detail the Vehicle’s Information

The vehicle’s information must be accurate and precise. The details must be complete for the safety and security of both parties. A car’s brand, manufacturer, date of manufacture, and color must be present. It must also include other distinguishing features of the vehicle. The most significant aspect about the car stated in the receipt is the Vehicle Identification Number (VIN). The VIN serves as a thumbmark and greatly distinguishes the auto apart from other vehicles of the same attributes.

Step 4: State the Total Price and Payment Options

Upon proper inspection and identification of the vehicle, there is a settlement of the amount. The amount’s basis is on the condition of the car and the agreed-upon terms of both parties. The seller writes down the mode and duration of payment. If the buyer opts for partial installment, the receipt reflects the initial amount made. It must state when the next payment is due as well.

Step 5: Indicate the Condition of the Car

The sales receipt must also include the condition of the car upon purchase. Stated defects of the car reflect on the document, and the statement of warrant is issued if it is available. The buyer must communicate properly with the seller for a just agreement. Only then can both parties sign the receipt.

FAQS

What are the essential things to consider when purchasing a used car?

It’s not a simple task to purchase a vehicle, let alone a used one. There are plenty of factors to consider when contemplating buying a used car. According to a market research report by IBIS World, a total of 144,431 dealerships that business used cars. Whether you are buying from a certified dealer or a private seller, providing yourself with knowledge considerably affects your decision-making process. Before going to a dealer, perform ample research and define the car you want. Research cars that fit into the description you want to have. Walking into a dealership without any idea of what you are looking for is impractical. The dealer can easily persuade you into buying any car. Prepare by researching and gathering information on a piece of paper or your phone. It is also essential to set a personal budget. Setting a price range helps you save money, narrow down the search and negotiate prices within your budget. It will be hard for the seller to talk you into increasing your budget if you are firm with your decision. It also helps if you give out an indefinite number and let the dealer start from there. It is advisable to consider all financing options. Paying in cash may look like the best option; however, you can also consider an auto loan with a great deal involved. Before any purchase, make sure to test drive the car. All may look good physically, but the best way to be sure is by taking the car out for a drive. Consider bringing someone knowledgeable about cars when looking for a vehicle. They can help verify if the auto is really in good shape.

How do you negotiate for a better price for a used car?

According to the Bureau of Transportation Statistics, the average price for new vehicles is approximately $30,000 in 2019. Meanwhile, used car prices average $20,000. The difference in prizes is considerably minimal between new and used cars. In answering the question, the best deal relies on negotiation skills. The amount of price deduction depends on the car’s worth, your financing capabilities, and how long the vehicle is for sale. You must perform enough research concerning the specifications of the auto you want and work your way from there. The most vital part of bargaining prices is the confidence you have in yourself. Never allow a salesperson or a dealer to intimidate you into securing a deal out of your comfort zone.

Does mileage matter in acquiring a used car?

As stated earlier, the mileage reading influences a car’s selling price. The lower the mileage recorded in the odometer, the higher the price will be. The odometer reading indicates the state of the car’s components where the devaluation of parts is prominent in vehicles used for a longer duration and great distances. A lesser mileage reading also means the fundamental elements of the car like breaks, suspensions, and engine are in good working condition. These are all just indicators of a well-kept vehicle. The best way to determine the overall condition of a car is through a mechanic’s meticulous inspection. It’s only then you can safely assume that the vehicle is in good working order.

Any kind of purchase is justified in terms of proper research and knowledge. The same goes for buying a used car. The goal of acquiring a used vehicle is to pay less with a good deal. If you lack research and finesse in negotiating prices, then it is best to walk away first. Familiarity with what you want will ensure the best deals possible. Assure you own an original copy of the sales receipt when the purchase is made final. It serves as a legal document in case complications arise. Also, guarantee that all fields in the release form are authentic and valid. In terms of negotiation, former president John F. Kennedy said, “Let us never negotiate out of fear. But let us never fear to negotiate.” Start negotiating for your car now, and familiarize yourself with the used sales receipt templates above.