What are the impacts of under-invoicing by 4S stores?
2 Answers
The following introduces the impacts of under-invoicing for car purchases: 1. Reduced purchase tax for the buyer: Lower invoice amount means lower purchase tax. 2. Lower valuation when selling as a used car: When selling a used car, mileage and vehicle age are critical factors in assessing its value. 3. Insurance claims are based on the invoice amount: Insurance companies use the invoice amount as a reference for claims or compensation. Additional information: Regular repair claims may also be affected, as maintenance or other related claims could be influenced by the invoice amount.
Hey, when I bought a car at the 4S store last time, they proactively asked if I wanted to underreport the invoice amount, saying it could reduce the purchase tax. I was tempted and agreed, saving a few thousand yuan. But later I realized the huge trouble—underreporting the invoice leads to lower valuations in the used car market. When I tried to sell my car, the price was severely undervalued, and I lost a lot of money. Insurance claims are also based on the invoice amount. After a minor accident, the compensation wasn’t enough to cover the repair costs, and I had to pay out of pocket. Worse, the tax authorities discovered this during an audit, and I was required to pay back taxes plus a fine, almost leaving a bad record. Sometimes, warranty services also require invoice proof, and the 4S store kept delaying and handling issues slowly. Now I regret it deeply and advise everyone not to be greedy for small savings—honestly issue the full invoice and prioritize safety first.
