Specific information about a trade-in vehicle is required because ownership is being surrendered in exchange for credit towards the purchase of a new vehicle

If an owner does not have "clear title" to a vehicle being traded, the dealer must have specific loan information so that the lien-holding lender can be paid and a clear title obtained. Liens prevent transfer of ownership from one person to another until outstanding loans have been paid.

Warnings to purchasers to read purchase orders completely and to state that oral assertions made by dealer representatives are not enforceable

Statements that dealers typically assume no responsibility for repairs outside those covered by manufacturers' warranties

Statements about Insurance requirements and warnings to purchasers to contact their own insurance representatives when contemplating purchases

Statements to indicate that signatures on purchase orders make them legally binding

Total Retail Price is the mutually agreed upon purchase price in addition to dealer installed items such as floor mats or undercoating sealant.

Trade-in allowance is deducted from purchase price BEFORE sales tax is calculated.

Trade Difference is the amount on which sales tax will be calculated.

Vehicle Inventory Taxes are levied by many states and typically passed on to purchasers at the time of the sale.

Sales Tax is levied on vehicle purchases in most states.

Luxury Excise Tax is assessed on very "high end" or very expensive vehicles.

License Plate fees are assessed by most states to help pay for road maintenance.

Title Registration fees are assessed by states to pay the costs of recording and transferring ownership when vehicles are bought and sold.

State Inspection fees are assessed to cover the costs of certifying that vehicles can be safely and therefore legally operated on public roads.

Documentary Fees are non-mandated fees assessed by dealers to cover the cost of processing paper work with state agencies to transfer titles of ownership from sellers to purchasers. Not all states allow this fee to be passed-on to purchasers.

Amount Owed on Trade-In is any unpaid balance of a loan on a vehicle being traded-in. When trade-in allowances exceed the amount owed on trade-ins, owners are said to be "upside down." Lenders might or might not finance "upside down" balances when new vehicles are being purchased depending on their own lending guidelines.

Total Amount Due is the sum of all purchase costs and fees minus and trade-in credits.

Down Payment is the amount of actual cash being paid by a purchaser and is subtracted from the total amount due figure.

Extended Warranties (otherwise known as Mechanical Breakdown Insurance) are sold by dealers and lenders to protect purchasers from unforeseen expenses when major breakdowns occur.

Balance to Finance is the amount that will be financed by a lender and paid to a dealer. Purchasers must sign Promissory Notes or Loan Agreements to "close the loan."

If a lender is financing the vehicle, purchase orders indicate the name and address of that lender so that a lien can be recorded when title of the vehicle is transferred to the purchaser.