What is a dealer invoice & how to create one

Dealer invoices outline how much a dealership pays for a vehicle. Explore resources for creating and sending encrypted dealer invoices to make the experience hassle-free.

What is a dealer invoice? When a car dealership receives a vehicle from a manufacturer, it also receives a dealer invoice. This invoice lists the actual cost a dealer paid for the vehicle, also known as the dealer cost. Because dealerships then offer services to customers, they often pay the dealer more than what the dealer paid. Why? Because the price markup needs to be applied to the dealership’s operating costs.

What is a dealer invoice price used for?

The dealer invoice price is a tool used within businesses for pricing, negotiations, inventory management, profit margin analysis, auditing, compliance, incentive programs, warranty claims, financial forecasting, and competitive benchmarking. It serves as the foundation for pricing strategies, gives an accurate inventory valuation, helps assess profitability, and aids in financial planning, compliance, and market analysis.

What to consider for your dealer invoice.

If a dealership chooses to show a dealer invoice to a customer, it may contain information that could be considered sensitive. Therefore, when creating a dealer invoice, it’s important to use tools that:

• Let you create and customize
• Send information safely and securely
• Encrypt and password protect documents and legally binding signatures

Because manufacturers send different types of vehicles to dealerships around the world, versatile digital and e-signature software makes it easy to create customized dealer invoice templates. Use any of the methods below to create yours:

• Upload an existing dealer invoice and update document fields
• Use a pre-built template
• Create your own template from scratch by adding and removing fields

After you’ve reviewed and checked it against local, state, or federal laws, it’s ready to send digitally.

What’s included in a dealer invoice?

A dealer invoice typically includes a detailed breakdown of information relevant to the sale between the manufacturer or distributor and the dealer.

Here’s a list of items that need to be included in a dealer invoice:

• Dealer and manufacturer information. The invoice contains contact details for both the dealer and the manufacturer.
• Invoice number and date. It includes a unique invoice identifier and the date of issuance.
• Product descriptions and quantities. Detailed descriptions of the products, along with quantities ordered, are provided.
• Unit prices. The price for each individual unit of the product is specified.
• Total cost. The total cost is calculated by multiplying unit prices by quantities.
• Shipping and handling charges. Any additional fees associated with transporting the products are outlined.
• Taxes and duties. Details of applicable taxes and duties, such as sales tax or customs duties, are itemized.
• Payment terms and method. Information on when and how payment should be made, including due dates and payment methods, is indicated.
• Shipping details. Specifics about the shipment, including the shipping address, carrier information, and expected delivery date, are included.
• Terms and conditions. Any specific terms and conditions related to the sale, such as warranties or return policies, are documented.
• Authorized signatures. Signatures of authorized representatives from both the dealer and the manufacturer confirm the agreement.

Items that you may not need to (or want to) include for the customer on the dealer invoice are sensitive or internal information not relevant to the dealer’s purchasing transaction, such as:

• Cost price. The actual cost to the manufacturer or distributor is not disclosed.
• Supplier discounts. Discounts or rebates provided to the dealer by the manufacturer are not included.
• Internal codes. Internal codes or references used by the manufacturer for tracking and inventory management are kept confidential.
• Supplier profit margins. The profit margin earned by the manufacturer or distributor remains undisclosed.
• Internal notes. Internal communication notes not meant for the dealer are not shared with the customer.

How to make a dealer invoice.

Because manufacturers send different types of vehicles to dealerships around the world, versatile digital and e-signature software makes it easy to create customized dealer invoice templates. Use any of the methods below to create yours:

• Upload an existing dealer invoice and update document fields
• Use a pre-built template
• Create your own template from scratch by adding and removing fields

After you’ve reviewed and checked it against local, state, or federal laws, it’s ready to send digitally.

How to send a dealer invoice.

Using e-signature software like Adobe Acrobat lets you send a dealer invoice simply by entering the recipient’s contact information. Since many manufacturers and dealerships prefer to sign invoices acknowledging receipt and agreeing to submit payment, you’ll be able to see if everyone has signed correctly simply by viewing the document’s electronic audit trail and history. When you digitally or electronically sign invoices, each signature is secure, encrypted, and unique — plus, they can be signed and reviewed on nearly any device from anywhere in the world.

Explore what more you can do with Acrobat today.