Why is an accurate, compliant bill of sale critical to your business’s success? Not only is it required by law, but it increases transparency and builds trust with consumers. It also serves as a written record to help resolve any kind of dispute. By documenting every detail correctly on the bill of sale, you can ensure that both your business and consumers are aligned.
Automotive businesses are obligated 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 Section 31.2(1) and (2) of the ABR, certain information must be included on the bill of sale. Here are some things to remember:
- The bill of sale should accurately identify the consumer(s), as well as the salespeople and the automotive business licensee who actually sold the vehicle.
- The bill of sale should be fully completed.
- Each transaction requires a single, final bill of sale. The consumer must receive a copy of this document, along with any other mandatory attachments.
- The bill of sale must accurately reflect the nature of the transaction and list any down payments, trade-ins, extra items as promised, 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 (ABR, 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.