{"id":25768,"date":"2024-11-11T05:58:42","date_gmt":"2024-11-11T13:58:42","guid":{"rendered":"\/wp-site\/?p=25768"},"modified":"2024-11-12T11:39:58","modified_gmt":"2024-11-12T19:39:58","slug":"what-is-a-purchase-order-from-a-car-dealership","status":"publish","type":"post","link":"https:\/\/jerry.ai\/car-loan\/what-is-a-purchase-order-from-a-car-dealership\/","title":{"rendered":"What is a Purchase Order from a Car Dealership?"},"content":{"rendered":"\n

Question<\/strong>: I got pre-approved for a car loan from my bank. But before they’ll approve the final loan, they want a purchase order from the dealership. I\u2019m not sure what that means\u2014what is a purchase order for a car, and how do I get one?<\/p>\n\n\n\n

Answer<\/strong>: A purchase order from a dealership\u2014also known as a car buyer\u2019s order\u2014 is a contract that\u2019s similar to a bill of sale. Once you and the dealer both sign it, the purchase order is a legally binding document. You can only back out of the sale after the order is signed in certain cases, like when your financing with the dealer isn\u2019t approved by a financial institution.<\/p>\n\n\n\n

Why do I need a purchase order?<\/h2>\n\n\n\n

The purpose of a purchase order is to make sure that everyone\u2019s on the same page regarding all of the details of the sale. It gives you a chance to review everything that impacts the final price that you\u2019ll pay and resolve any remaining questions.<\/p>\n\n\n\n

A dealership is generally required by law to provide you with a copy of the purchase order once you start negotiating to buy a vehicle. Once you agree on the final sales price, they must give you a completed purchase order.<\/p>\n\n\n\n

If you\u2019re financing the car, your lending company will need the purchase order to verify the amount of the loan. It is generally sent to the lending company by the dealer.<\/p>\n\n\n\n

What’s included in a purchase order?<\/h2>\n\n\n\n

Your purchase order will include an itemized list of anything included in the final purchase price, including the sticker price, interest rate, loan terms, taxes and fees, rebates, your down payment and add-ons like GAP insurance. It will also include the date of the sale, your name and address, and the dealer\u2019s address.<\/p>\n\n\n\n

A purchase order will also have information about the specific vehicle you\u2019re buying, including the:<\/p>\n\n\n\n

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  • Make<\/li>\n\n\n\n
  • Model<\/li>\n\n\n\n
  • Trim and optional packages<\/li>\n\n\n\n
  • VIN<\/li>\n\n\n\n
  • Current mileage<\/li>\n\n\n\n
  • Warranty<\/li>\n<\/ul>\n\n\n\n

    Carefully read the fine print in your purchase order<\/strong>: Before you sign on the dotted line, read over the purchase order carefully to make sure you understand any fees or add-ons included in the final purchase price. Also verify that all of the financing terms are exactly what you agreed to, including the interest rate and length of the loan. Remember, the document becomes legally binding once you sign it.<\/p>\n\n\n\n

    Why do I need a purchase order if I\u2019m already pre-approved for a loan?<\/h2>\n\n\n\n

    When a lender pre-approves you for a loan, they\u2019re guaranteeing that you\u2019ll be able to borrow up to that pre-approved amount. But the exact loan amount can\u2019t be finalized until you choose a vehicle to purchase and negotiate the fees associated with it. The purchase order provides the final cost information to your lender so they\u2019ll know exactly how much you need to borrow.<\/p>\n\n\n\n

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