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What is a Car Invoice?
A car invoice is a written verification of agreement send by a seller to itemize the quality and the quantity of the vehicle being sold. It is an important document in the business' accounting and bookkeeping. Basically, the role of a car invoice is to establish an obligation on the part of the purchaser to pay.
How to Create a Car Invoice
According to Statista, the increased demand for cars in Asia will help automotive manufacturers sell close to 80 million vehicles by the end of 2019. Pertaining to the aforementioned forecast, no doubt that an simple invoice would be a great help during transactions. Here are some guidelines that can help you in creating a car invoice.
1. Include Invoice Number, Invoice Date, and Due Date
An invoice can also serve as a proof purchase receipt, thereby it is important to include the invoice number, invoice date, and its due date to make it a reliable document. The aforementioned details should always be present in an invoice because it clarifies the buyer's obligation. The business invoice number is the seller's means to track the invoices that is sent to the purchaser. Remember, refrain from repeating the invoice number to avoid confusion.
2. Provide your Business Information and your Client's Information
The details of the seller and the purchaser are important in all written communications. These details includes the company name, business address, phone number, and the email address of both parties. However, if the purchaser does not have a company, be sure to specify his or her name. Moreover, it is inevitable to have a customer who pays later than the agreed payment date. The purchaser's contact information allows the seller to track their payments and whereabouts, especially if their bill has long been due.
3. Put the Vehicle's Information and Product Description
Whether you are creating a truck rental invoice or an auto sale invoice, providing the details of the product being purchased is necessary. In creating an invoice, be detailed and specific as possible. Sending a detailed invoice to your customer avoids miscommunication. Vehicle information may include color, model, engine size, mileage, registration, VIN, MOT expiry, odometer, and etc. Furthermore, do not forget to specify the product description of the purchased vehicles—the quantity, unit price, and the total purchase.
4. Terms of Payment
At the bottom part of your sample invoice, lay down the price of sale, date of sale, and the method of payment. Prior to making the invoice, be sure to ask your client how they are suppose to pay you. If they opt to pay via PayPal, then you can provide your PayPal email. Meanwhile, if you accept checks, please specify your account number and the bank details.
5. Signature
There are people who insist that a signature is not required in an invoice, however, if you want an assurance that the purchaser will pay for the purchased automobiles, then a signature would be vital. Signatures can be used as a proof that the buyer agreed to all terms visible in an invoice, if ever he or she tries to deny. Signatures can also make your car invoice more concrete and formal.
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