When you buy a new or preowned vehicle, you need to sign several important legal documents before you’re handed the keys.
One of these documents is called the buyer’s order, which contains the agreed-upon terms of the sale.
Understanding the buyer’s order and what it means be helpful before you begin the transaction.
Looking for an auto loan that works for you? Easily compare rates from lenders below.
Your one-stop shop for comparing car loans.
Enter your information to see your auto loan options.
What Is the Buyer’s Order?
The buyer’s order includes detailed information about the car you are buying, including the VIN, color, make, model, options, features, and warranties. It includes information about both you as the buyer and the dealer from which you are purchasing the car.
You will also find a fully itemized list of all the costs you’ll pay as part of the vehicle purchase, including the final negotiated car price, plus any taxes, documentation costs, and dealer fees. If you’re trading in a vehicle as part of the sale, the buyer’s order should also include your trade in information.
The buyer’s order is a legally binding contract. That means that if either you or the dealership fails to go through with the sale, the other party will have legal recourse. However, you don’t pay for the vehicle until you review, approve, and sign the buyer’s order.
When you review the buyer’s order, it’s extremely important to ask questions and request changes where needed before moving forward. Take some time to review the contract line by line and in full before you agree to sign. A representative from the dealership should review the contract with you and be able to clarify any details.
What Other Legal Documents Will I Sign at the Dealership?
Buying a car often involves a lot of paperwork, whether you’re purchasing a new or preowned vehicle. Here are some of the documents you might need to sign when you’re at the dealership:
- Bill of sale (also called the purchase agreement)
- Odometer disclosure statement
- Damage disclosure statement (for used cars)
- Your loan agreement
- Trade in information
- Extended warranty contract
- Manufacturer or dealer rebates
- Truth in lending disclosure
Understanding the documents you will sign before you go to the dealership can help expedite the process of purchasing a vehicle.
However, it’s always a good idea to thoroughly review any legal documents you’re asked to sign.
Don’t be afraid to ask questions and take as much time as you need to read through the contracts before signing.
Finance & Insurance Editor
Elizabeth Rivelli is a freelance writer with more than three years of experience covering personal finance and insurance. She has extensive knowledge of various insurance lines, including car insurance and property insurance. Her byline has appeared in dozens of online finance publications, like The Balance, Investopedia, Reviews.com, Forbes, and Bankrate.
