How to Read a Buyer's Order and Finance Contract Before You Sign

Before you sign, put your written out-the-door quote next to the dealer's paperwork and check every number. It takes ten minutes. Two documents matter most: the buyer's order, which describes the sale, and the retail installment contract, which describes the loan if you finance through the dealer. If they match what you agreed, sign. If they do not, stop and ask.

The two documents

	Buyer's order	Retail installment sales contract
Also called	Purchase agreement, bill of sale, purchase order	Finance contract, RISC
What it covers	The vehicle, price, fees, taxes, trade-in, deposit, balance due	The amount financed, APR, payments, and loan terms
Who gets one	Every buyer	Buyers financing through the dealer

Forms differ by state and dealer, so labels on yours will vary. If you bring your own loan, you sign that lender's documents instead of a retail installment contract.

Buyer's order, line by line

The vehicle

VIN. Compare it with the VIN on the car's dashboard or door jamb, not just the stock number. This confirms you are buying the exact car you drove.
Year, make, model, trim, and mileage. The odometer reading should match the car.
Buyer names. Only the people who should be on it.

The price

Vehicle selling price. The negotiated price, before fees and tax. Compare it with your written quote.
Dealer-installed accessories and packages. Each should be something you agreed to, at the price you agreed to.
Rebates and incentives. Listed by name and amount. Confirm they are applied where you expect: some reduce the price, others are treated as part of your down payment. See rebates and incentives explained.

Fees and taxes

Documentation fee and any other dealer fees. These should match the quote. A fee you have not seen before deserves the question, "Is this required by the state, or is it a dealer charge?" See dealer fees explained.
Sales tax. Check the rate and what it was applied to. See sales tax, title, and registration.
Title, registration, and plate fees. Government charges, often estimated.

Trade-in

Trade-in allowance. The value you agreed for your car.
Payoff. What the dealer will pay your current lender. Compare it with the payoff quote you got from your lender. If the dealer's figure is lower than the real payoff, you could be left owing the difference.
Net trade-in. Allowance minus payoff. If negative, that amount is being added to your new loan. See negative equity.

What you pay

Cash down payment and deposit. Including any deposit you already paid.
Balance due or amount to finance. This is the bottom line. It should equal your out-the-door price minus your down payment and net trade-in.

Fine print worth reading

"As is" or warranty terms. On a used car, the federal Buyers Guide on the window states whether the car comes with a warranty. The Federal Trade Commission (FTC) says the Buyers Guide overrides anything contrary in your sales contract, and that spoken promises are difficult to enforce, so get them written down. Keep the Buyers Guide.
Conditional sale language. Look for wording that makes the sale subject to financing approval. More on that below.
We-owe or due bill. Anything the dealer promised to do later (a second key, a repair, a missing floor mat) should be written on a signed form. If the form says "nothing owed," that is what you will get.

Retail installment contract, line by line

The federal disclosure box

The Truth in Lending Act requires lenders to give you these in writing before you are obligated. They usually appear together in a row of boxes near the top.

Box	What it means	Check it against
Annual percentage rate	The cost of credit as a yearly rate	The rate you were quoted or your pre-approval
Finance charge	The dollar cost of credit over the whole loan	Your own estimate from the payment calculator
Amount financed	The amount of credit provided to you	The balance on the buyer's order
Total of payments	The sum of every payment you will make	Monthly payment times number of payments

The Consumer Financial Protection Bureau (CFPB) notes the disclosure also includes the number of payments, the monthly payment, late fees, and whether you can prepay without penalty.

Payment schedule

Number of payments, amount of each, and the date of the first one. Confirm the term in months is the one you chose. A payment that matches your expectation at a longer term than you agreed is a different, more expensive loan. See APR and loan terms explained.

Itemization of amount financed

This section shows how the amount financed was built: the cash price, minus your down payment and trade-in, plus amounts paid to others on your behalf. That last part lists government fees and any optional products, each by name and price: service contract, GAP, maintenance plan, and so on.

Read every line here. This is where products you did not ask for show up. See dealer add-ons.

Other terms

Prepayment: whether there is any penalty for paying early
Late charge: amount and grace period
Assignee: the dealer typically assigns the contract to a bank or finance company, which then collects your payments

Common mismatches

What you agreed	What the paperwork shows	Why it happens	What to say
Out-the-door total of X	A higher total	A new fee or accessory line	"Which line was not on my quote?"
No extra products	A service contract or GAP in the itemization	Added in the finance office, sometimes quoted only as a payment change	"Please remove it and reprint."
APR from your pre-approval	A higher APR	Dealer-arranged rate with markup	"My approval is at X%. Match it or I'll use my lender."
60 months	72 months at a similar payment	Term stretched to absorb added cost	"Please print it at 60 months."
Trade-in at a set value	A lower allowance, or higher price offsetting it	Numbers moved between lines	"Show me the price and the trade value separately."
Promised repair or item	Nothing in writing	Verbal promise	"Please add it to the we-owe form."

Many of these are honest errors. A calm request to reprint usually resolves it. If it does not, see when to walk away.

Signing safely

Ask for time and a printed copy. The FTC advises reading the sales contract and financing agreement carefully and asking for a printed copy. If you are signing on a tablet, ask to scroll through each full document first.
No blanks. The CFPB advises making sure all blanks are filled in before you leave with your copies.
Make sure the financing is final. Some dealers let you take the car before a lender has approved the loan, a practice called spot delivery. The CFPB warns the dealer might then ask you to return and sign for a higher rate or other changes. You do not have to agree to a second deal, and the CFPB says that if you do not, the dealer has to unwind the sale and return your trade-in and down payment. Ask before you sign: "Is the financing approved, or is this conditional?"
Do not count on a cooling-off period. The FTC says federal law does not require dealers to give you three days to cancel and return the car. Some states provide a limited right, and some dealers offer a return policy. If one applies, get it in writing.
Leave with copies of everything you signed.

For what the rest of that appointment looks like, see the finance office: what to expect. To get the quote you will be comparing against, start with the out-the-door price.

The short version