How does having an accurate and compliant bill of sale help your automotive business succeed? Not only is it required by law, but it increases transparency and build trust with consumers. It also acts as a written record to help resolve any kind of dispute. By capturing all the information, you can ensure your business and consumers are both on the same page.
Automotive businesses have an obligation to create and maintain complete and accurate financial records (Consumer Protection Act 132(1), Automotive Business Regulation (ABR) Section 9). This includes, but is not limited to, a bill of sale.
As per the ABR Section 31.2(1) and (2), certain information must be included on the bill of sale. Some things to remember about the bill of sale:
- The bill of sale should accurately identify the consumer(s), as well as the salesperson(s) and the automotive business licensee who actually sold the vehicle.
- The bill of sale should be fully completed.
- There should be only one final version of the bill of sale per transaction, and the consumer must be provided with a copy along with any other documents required to be attached to the bill of sale.
- Must accurately reflect the nature of the transaction and must list any down payments, trade-ins, extra items as promised, cash back, etc.
- Any mandatory fees, charges, or costs that are on the bill of sale must have been included in the advertised all-in price for the vehicle (Section 31.2(j) and (l)).
Review your bill of sale to ensure you have included everything listed in the ABR Sections 31.2(1) and (2). If you want to create your own compliant bill of sale, AMVIC has a checklist available on amvic.org.