A vehicle purchase order, or buyer’s order, confirms a buyer’s intent to purchase a vehicle from a car dealership or private seller. It creates a record of the agreed selling price, the selected vehicle, and everything included in the buyer’s payment (add-ons, extended warranties, doc fees, etc.). If financing is involved, a signed PO is often required as part of the lender’s approval process.
A vehicle purchase order, or buyer’s order, confirms a buyer’s intent to purchase a vehicle from a car dealership or private seller. It creates a record of the agreed selling price, the selected vehicle, and everything included in the buyer’s payment (add-ons, extended warranties, doc fees, etc.). If financing is involved, a signed PO is often required as part of the lender’s approval process.
Most states apply sales tax only to the amount the buyer pays after the trade-in value is deducted. However, in a handful of states, sales tax is based on the full vehicle price, regardless of the trade-in.
Sellers should review their state’s rules to be sure taxes are charged correctly.

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