What are the impacts of under-reporting the invoice amount for a new car?

[VanJake]

Under-reporting the purchase invoice price for a car may result in a lower valuation during second-hand transfers. Here are the relevant details: 1. Relevant rules: The ex-factory price of a vehicle does not include value-added tax, meaning the invoice price is the ex-factory price plus tax, creating a certain difference between the two. The ex-factory price refers to the total price of the vehicle itself, excluding any additional fees, and is generally the manufacturer's suggested retail price (MSRP). 2. Drawbacks: If the invoice price is under-reported, when transferring the car, buyers will only refer to the invoice price, leading to a lower transfer price. Similarly, in cases of theft, flood, fire, or collision insurance claims, the insured amount is usually calculated based on the invoice price. Additionally, when pursuing compensation from the manufacturer for quality issues, it may be difficult to claim based on the actual purchase price, and compensation will only be based on the invoice price.