What Are the Impacts of Underreporting Car Purchase Invoice?
2 Answers
Impact on insurance compensation amount. There are 4 key points to note when buying a car: 1. Choose the vehicle type: Vehicle types include sedans, SUVs, MPVs, hatchbacks, etc. You can select the most suitable model based on needs and preferences. For personal commuting, compact and agile hatchbacks are ideal, while family users may opt for spacious SUVs; 2. Determine the budget: When selecting a car, it's essential to act within your means and choose an appropriate model. Purchasing a car also involves paying purchase tax, vehicle and vessel tax, insurance, and license plate fees, so the total on-road price should be considered; 3. Do your homework: Before buying a car, thorough preparation is necessary, including understanding the model's pros and cons, fuel consumption, and manufacturer's suggested retail price. In today's big data era, you can look for reviews and check others' evaluations of the car; 4. Pay attention to the contract: When signing the car purchase agreement, pay close attention to every detail in the contract, such as the difference between 'deposit' and 'booking fee'. A single word can determine whether the booking fee is refundable or not.
Last year, when I helped my nephew buy a car, we encountered a situation where the invoice amount was understated, thinking it would save on taxes. However, it turned out to bring quite a few troubles. Although the vehicle purchase tax paid during registration was less due to the lower invoice amount, the insurance company used the invoice price as the standard for assessing damages. Once, after a rear-end collision, the insurance company compensated based on the understated invoice price, leaving me to cover over 5,000 yuan in repair costs. When selling the car, the buyer aggressively negotiated the price down after checking the invoice records, and the second-hand valuation was also 20,000 to 30,000 yuan less. A friend at the tax bureau mentioned that this could trigger a tax audit, and if tax evasion is proven, back taxes and fines would be required. The worst part is that some components under the manufacturer's warranty are compensated based on a percentage of the purchase price, so a low invoice would reduce the payout. Therefore, it's advisable to request the actual amount on the invoice during transactions to avoid small gains leading to big losses.
