What is a Car Invoice Letter?


What is a Car Invoice Letter?

When buying a car in an automotive agency, an invoice is delivered which is the document that proves the ownership of the vehicle; however, when the car is purchased on credit an “Invoice Letter” is provisionally delivered assuming that the buyer will own the unit but is still paying for it.

Legally, the Invoice Letter it is insufficient to prove the ownership of a car, But it is possible that the buyer proves the ownership of the vehicle before the authorities for procedures such as vehicle registration, payment of the possession or even removing the car from the corralón.

It should be noted that the invoice letter is issued with a validity that is usually 30 daysTherefore, at the end of the period and if necessary, the agency will have to request the issuance of a new invoice letter again. At the end of the car loan payments, the original invoice with the necessary tax information will be delivered to the buyer.

There is also another case in which a provisional document could be issued, and that is when the vehicle is purchased for cash, the dealer may issue a Invoice letter valid for less than 30 days so that you can circulate and do the vehicular procedures necessary, in which the agency processes with the manufacturer the official documentation of ownership of the vehicle.

Types of invoices for a car

Depending on the status of the vehicle, a document is issued that declares the ownership of the unit, among them are:

Invoice Letter

It is the document issued by the automotive agency so that it can be verified before authorities that the buyer is still paying for a vehicle.

Original invoice

At the time of liquidating the unit, the automaker or car agency issues a document that indicates the value of the vehicle and the VAT that was paid, as well as the description of the unit in which the equipment, version and technical sheet are detailed, in addition It is issued in the name of the owner of the car.

Endorsed Invoice

This is a document that is issued when the original owner wants to sell the car to someone else, so you will have to give legal testimony in the original writing, in which the ownership of the unit described in the original invoice will be transferred to a third party. Usually the back of the original document or the re-invoice is signed and it is recommended to attach a document of transfer of property rights as well as a contract of sale.


Rebilling is when a company issues a second, third or the necessary number of invoices that verify the purchase-sale of a vehicle that was in the name of a legal entity. This new document does not need the detailed description of the original invoice, in addition the company keeps the initial document and gives the new owner the invoice and a simple copy of the one issued by the manufacturer.

Unlike the endorsement, this document assigns ownership of the unit by means of a new document that transfers the rights to a third party, either an individual or a legal entity. It should be clarified that the re-invoice can only be generated by a company, as mentioned in the previous case, if it is between individuals, an endorsement is issued on the original invoice.

Insurance bill

When an insured vehicle had a mishap in which it was declared a total loss, either by collision or that was recovered 30 days after having been declared total theft, the insurer requests the policy holder and the car to assign the rights of the property in order to indemnify you.

Sometimes these vehicles are re-invoiced in the name of the insurance company and auctioned off to lots or mechanical workshops, who later market them.

Is it reliable to buy a semi new car only with Invoice Letter?

When buying a car and paying for it in its entirety, an invoice must be issued that has the data that accredits the buyer as the owner of the vehicle. When it is thought to sell that car it is necessary to issue an endorsement certifying that the new buyer will become the new owner of the car.

If the seller does not deliver the original invoice the original owner may have lost the document and you must request a certified copy from the notary. Or if there is a refusal to deliver this document, then it could be a red flag of fraud.

What to do if the invoice is lost?

Perhaps this is one of the worst fears of car owners, since the invoice is essential to carry out procedures such as vehicle endorsement, payment of tenure or even sell the car. When this document has been lost, the following measures should be taken:

  1. Go to the Public Ministry and draw up a report of complaint, to avoid misuse of the invoice.
  2. Request a reissue at the dealer and in that case request a simple copy that must be notarized.
  3. Check the copy before a notary or process a document called “testimonial faith” that guarantees ownership and corroborates the legitimate possession of the vehicle.
  4. Require a Voluntary Jurisdiction trial in which a judgment will be issued that will result in a property title issued by an authority.

Is it convenient to buy a car with an insurance bill?

When a car has an accident with damages that are difficult to repair or more expensive than the value of the vehicle itself, the insurer declares it as a Total Loss and pays the corresponding part to the insured, who must endorse the invoice for the damaged car in the name of the insurance company. insurance. These units are known as “Salvage” and refer to cars that have suffered an accident and that the company finished off.

Generally, these cars are bought by auto repair shops to fix them or use their parts. When they are repaired and sold, the merchant transfers them with the re-invoice that the insurer gave them when they were auctioned or with a re-invoice from the workshop. Many times motorists choose to acquire a vehicle with an insurance bill, as they are generally cheaper, however the buyer cannot be sure how serious the damage was to the unit, since it cannot be superficially evaluated .

Thus, experts recommend that when buying a car with an insurance bill of a batch, it is review the invoices issued until they reach the one of origin Y evaluate if the car had a serious accident or not, because that way you will be able to know if the car has internal defects that could be fatal.

It should also be clarified that acquiring auto insurance for these vehicles is usually an odyssey, since many companies usually do not insure these cars or depreciate up to 25% the compensation of the car or the value indicated on the insurance bill, which can be very low .

Can you insure a car with a Letter Invoice?

Generally, to take out insurance it is not necessary to present the original invoice for the vehicle, unless, as mentioned, it is necessary to request compensation for the insured car for Total Loss.

On the other hand, it should be noted that the cars that have an Invoice Letter are vehicles that are under an automotive credit scheme, so in most cases the same agency is the one that provides the insurance during the first year. free. Now, if the buyer later decides to take out an auto policy on his own, he must ask the insurer that the beneficiary be the agency or financial company with which he has contracted the loan.


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