Why does a car worth 150,000 show 120,000 on the invoice?
2 Answers
The reasons why a car worth 150,000 shows 120,000 on the invoice: 1. The invoice price of a car is usually lower than the actual price, as agreed between the car owner and the 4S store. If the invoice price is set lower, the 4S store can pay less tax, and the car owner can receive corresponding compensation from the 4S store. 2. Generally, the invoice price only includes the bare car price, while purchase tax, insurance fees, and other costs are paid separately and not included in the car purchase invoice. 3. The bare car price does not include the value-added tax, meaning the price on the car purchase invoice is the post-tax price of the bare car, resulting in a certain difference between the two. The bare car price refers to the total price of the car itself, excluding any other fees. The manufacturer's suggested retail price (MSRP) is usually the bare car price.
I've purchased several cars and have seen cases where the invoice amount was less than the actual payment a few times, usually as an intentional under-invoicing strategy. The dealer helps you under-report the invoice, and since the purchase tax is calculated based on the invoice price (around 10%), you can save a significant amount. That 30,000 yuan difference might include service fees, insurance, or accessories—you'll need to check the addendum to the car purchase contract. I remember once my car's invoice was 20,000 yuan less because it included an extended warranty. Don’t just look at the numbers; verify the details to avoid disputes during warranty claims. In the long run, under-invoicing may pose tax risks, and the invoice amount affects future claim settlements.
