The invoice letter It is a document that they give you when you buy a car on credit or through financing and it is essential to do some paperwork while you get the original invoice. If you plan to buy a vehicle for your business, there are things you should know.
Imagine that you are going to buy a car for your business and, unless you have a lot of money saved, it is most likely that you will pay for it with the help of financing. On credit, then.
The car will belong to the company that supports you with the financing, only until you pay off the debt. Meanwhile, you need a document that proves that you are paying for the vehicle in question and that you can use it. Well, that’s the function of the invoice letter of a car.
In this article I explain in detail what is an invoice letterwhat it is for and some details that you should consider if you have a business that is dedicated to the sale of cars.
What is the invoice letter?
Words more, words less. The invoice letter is the document that proves that you are paying for a car through a credit and that you will be the owner of it when you liquidate it. The invoice letter is given to you by the agency that is selling you the vehicle. It can also be issued by the financial company that grants you the credit.
Of course, an invoice letter gives you all the right to use that car while you finish paying for it. Once you settle it, then the agency gives you the invoice, which is in your name and proves that, now, you are the owner of the car.
To avoid any confusion, I will tell you the difference between an invoice and an invoice letter.
What is the difference between invoice and invoice letter?
It is common that sometimes we confuse a invoice with a invoice letterBut they are different documents. There are some differences between the two and now I’ll tell you.
As I told you, an invoice letter is the document that proves that you are paying for X vehicle. It contains all of its data and gives you the right to use it as long as you continue to pay for it.
When you liquidate the financing, then the agency issues the car invoice in your namewhich has all the data of the vehicle and legally accredits you as its owner.
If you are one of the minority that buys a vehicle in cash ——, it is most likely that the agency will issue you an invoice letter valid for 30 days. At that time you must do the necessary procedures so that the car circulates in what they give you the invoice.
Something very important: if for some reason you do not have the invoice for the car, in particular situations. Sure, as long as you accompany it with other means of proof. Although the ideal will always be to request a certified copy of the original invoice and I will talk about it later.
What is the invoice letter for?
So, the invoice letter only serves to show that you are paying for a car and that you can use it? No. The invoice letter has other uses, above all to help you release certain paperwork while you finish paying it and get the invoice.
The invoice letter is useful to help you carry out various procedures. Among them:
- Registration and cancellation of plates for new and used vehicles.
- Change of owner and process the circulation card.
- Release of the car if it was taken to a corralón (hopefully not😜).
By the way, there are private vehicle control procedures for all types of fiscal persons.
What are the main types of invoice?
In the case of vehicles, there are several types of bills. These are the main ones:
- Original or original invoice
- invoice letter
- rebill
- endorsed invoice
- insurance bill
Let me explain what each of them consists of, do you think?
Original or original invoice
It is the document issued by the automobile company in your name once you have finished paying for the car, if you acquired it through financing. This paper legally accredits you as the owner of the vehicle.
invoice letter
It is a document that allows you to prove that you are paying for that vehicle and gives you the right to use it in the meantime. The invoice letter is generally valid while you settle the financing —if you pay it in cash, it is generally valid for 30 days—. After this, the agency gives you the invoice.
rebill
This document is issued when there is a transaction for the sale of a vehicle that was in the name of a company. Consider this example: a company gives its managers a car from time to time. After that, he sells the cars which, of course, are in his name. In these cases, it issues a re-invoice for that sale. Even if you buy a used car at an agency, they will also issue you a rebill.
🚗 Tip: If this is your case, it is very important that they give you a copy of the original invoice, as they will request it when you change ownership to issue a new circulation card.
endorsed invoice
If you sell your car to someone else, you will have to ‘endorse’ the invoice. That is, put your name and signature on the back of the original invoice or the re-invoice —as the case may be— to assign the ownership rights of the vehicle to the person who is buying it from you.
Can the invoice letter be endorsed? No, because although it is a document that proves that you are paying for it, you are certainly not the owner yet. I will tell you about it later.
🚗 Tip: In addition to endorsing an invoice with name and signature, it is highly recommended to write a transfer of rights legend in the name of the buyer. Likewise, accompany this with a sales contract to avoid legal problems.
insurance bill
It is the document issued by the insurer to pay the owner of a car that suffered the theft of the vehicle or an accident with a total loss and pay him. This rebill is in the name of the insurer, which, if they recover the car, will end up selling it at a very low price – you know why, so be careful when buying vehicles that have these types of invoices.
Who issues an invoice letter?
Since the invoice letter is a document that proves the sale of a vehicle, only the agency that is selling it has the power to issue it. In other cases, it can be issued by the financial institution that is granting you the credit.
When you finish paying for the vehicle, the agency gives you the invoice that accredits you as the owner of the vehicle.
If you have a business dedicated to the sale of vehicles, You must issue this type of document to your clients.
The purchase/sale of cars is, without a doubt, a very profitable market area if you have the capital, but if you want to explore other interesting possibilities, I invite you to read our article with .
When should you request an invoice letter?
If you are looking to invest in a vehicle for your businessWhether it’s a car, motorcycle, or even a truck, you must ask for an invoice letter.
Remember that you will need this document to carry out vehicle control procedures, such as registration and issuance of the circulation card before the authorities. In this case, the agency or finance company will give it to you automatically.
There are other situations in which you could request an invoice letter. For example, if you still do not have the original invoice – say, because you are still paying for the vehicle – and your car was taken to the corralón or you had some type of mishap, it is most likely that you should request a new one because the first one will not be valid.
How long is the invoice letter?
Usually, the invoice letter is valid for 30 days. This time should be enough for you to do the necessary vehicle control procedures so that the car can circulate without problems.
For example, for placement procedures or change of owner, the authorities will ask you for various documents, including the invoice letter. Without it, you will simply not be able to carry out these procedures and, consequently, your car will be stopped. That is, in essence, the reason for the invoice letter.
If for some reason you were unable to complete all the procedures within the 30 days that the invoice letter is valid, you must request a new one.
How much does the invoice letter cost?
The invoice letter is generally free of charge. As soon as you acquire a vehicle, the agency or financial institution issues it to you automatically so that you can carry out your paperwork.
What if for some reason you need a new invoice letter? request a new —because you lost the first one or because it lost validity— may or may not have a cost. That depends on the agency, or even on the seller’s criteria – if you are a spoiled client, it is most likely that they will not charge you. Of course, the price is also variable, but it can range from $350 to $500 MXN.
With the original invoice the procedure is different. If you lost the original, you must request a notarized copy from the agency. This does have a cost and varies between states. In Mexico City, for example, the price is .
What happens if I buy a motorcycle only with an invoice letter?
With everything I’ve told you, it is recommended that you do not buy a motorcycle -or any vehicle- that only has an invoice letter and not the original invoice. This is basically because an invoice letter is insufficient to prove that someone owns a vehicle.
If the person who is selling that vehicle only has the invoice letter, chances are, at best, they are still paying for it. In the worst case scenario, the vehicle might not even be owned by you. If the seller is serious, ask for a certified copy of the original invoice.
Can an invoice letter be endorsed?
This goes hand in hand with the previous point. An invoice letter cannot be endorsed because this document is insufficient for someone to prove legal ownership of the car —or who is the owner, then—.
Why would anyone want to endorse an invoice letter? As I told you, this document should not convince you to acquire a vehicle that does not have the original invoice. You could get in trouble.
If you require another person to carry out vehicle control procedures on your behalf, then you do not need to endorse the invoice letter, but to grant it a legal power of attorney.
In conclusion
Ok now you know that an invoice letter is essential to carry out vehicle control procedures when you buy a car. Without it, the vehicle will be stopped.
I must also insist that an invoice letter is insufficient —except in exceptional cases— for someone to prove ownership of a car. If someone wants to sell you a vehicle only with the invoice letter, do not buy it! Get advice and look for references. It will always be better (and safer) to go to an authorized dealer or dealer.
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