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Due Bill

A due bill is a written agreement between a dealership and a customer that lists specific promises the dealership agrees to fulfill after the vehicle sale. These promises might include repairs, parts, accessories, or services that could not be completed at the time of delivery.

The due bill serves as a binding document to protect both the customer and the dealership. It ensures that the buyer receives promised items, while also preventing disputes by clearly outlining what is owed and by when.

Why Due Bills Matter in Automotive Retail

The due bill is an integral part of dealership operations for several reasons:

  • Customer Trust: Assures that the dealership’s promises will be honored.
  • Accountability: Reduces misunderstandings by documenting commitments in writing.
  • Legal Protection: Protects both parties by providing a record of what was agreed upon.
  • Efficiency: Keeps sales and service departments aligned on what needs to be delivered.

Without due bills, promises made during the sales process could easily become “he said, she said” disputes.

Common Examples of Items on Due Bills

Due bills often include:

  • Installation of accessories like floor mats, spoilers, or roof racks.
  • Repairs such as fixing scratches, dents, or paint imperfections.
  • Mechanical work, like replacing worn tires or brake pads.
  • Delivery of missing items such as keys, owner’s manuals, or spare tires.
  • Services like a free oil change or detailing are promised during negotiations.

By documenting these details, dealerships ensure that every customer expectation is handled consistently.

In many states, due bills are considered legally binding. Failing to honor them can expose a dealership to:

  • Complaints with state motor vehicle boards.
  • Negative reviews and reputational damage.
  • Legal claims for breach of contract.

To remain compliant, dealerships should:

  • Always provide a written, signed due bill.
  • Clearly describe each item or service promised.
  • Specify deadlines for fulfillment where possible.
  • Ensure all due bill items are realistic and approved by management.

Due Bills vs. We-Owes

The terms “due bill” and “we-owe” are often used interchangeably in dealerships. Both refer to the same concept: a dealership’s obligation to provide something after delivery.

Some dealerships prefer “we-owe” because it frames the obligation from their perspective. However, the function remains the same, documenting promises to ensure follow-through.

Risks of Mismanaging Due Bills

Improperly handled due bills can create serious problems:

  • Customer Dissatisfaction: Failing to deliver damages long-term relationships.
  • Increased Costs: Unclear promises can lead to delivering more than initially intended.
  • Operational Delays: If not tracked, due bill obligations may be forgotten.
  • Legal Liability: Noncompliance can escalate into legal disputes.

Strong processes for issuing, tracking, and fulfilling due bills minimize these risks.

Best Practices for Managing Due Bills

Dealerships can improve due bill management with these practices:

  • Clarity in Writing: Avoid vague descriptions such as “repair scratches.” Instead, specify “repair scratch on right rear bumper.”
  • Internal Tracking: Use dealership management software to assign and monitor due bill tasks.
  • Cross-Department Communication: Ensure that service and parts departments are aware of exactly what is owed.
  • Customer Updates: Keep buyers informed about progress and expected timelines.
  • Final Sign-Off: Require confirmation from both service and sales teams when a due bill is completed.

Well-documented and efficiently executed due bills improve both compliance and customer satisfaction.

How Due Bills Affect Customer Perception

Customers often view overdue bills as a test of a dealership's integrity. Delivering on promises quickly and professionally strengthens trust, while delays or disputes can erode confidence in both sales and service teams.

Dealerships that consistently honor due bills can turn a potentially negative situation into a positive one, showing commitment to transparency and customer care.

Due Bills in the Service Department

Although due bills originate in sales, the service department often carries out the work. That’s why seamless communication between departments is essential. A poorly documented due bill can result in wasted time, incorrect repairs, or frustrated customers.

Precise scheduling, resource allocation, and practical customer communication help ensure that service teams complete their obligations without disrupting regular operations.

Technology and Due Bill Tracking

Modern dealership management systems (DMS) often include due bill modules that:

  • Record obligations directly in the sales process.
  • Automatically assign tasks to service or parts staff.
  • Generate reminders and completion reports.
  • Provide visibility for managers to ensure compliance.

Digital tracking reduces the risk of human error and ensures that no overdue bills slip through the cracks.

Common Customer Questions About Due Bills

  • “How long will it take to complete the work?”
  • “Do I have to pay anything extra?”
  • “What happens if the dealership doesn’t deliver?”
  • “Can I go to another dealership for the work?”

Training staff to answer these questions with clarity and professionalism builds customer confidence and helps avoid unnecessary disputes.

The Automotive Training Network helps dealerships improve processes, such as due bill management, through hands-on training and consulting. From sales documentation to customer communication, our programs ensure promises are kept and customer trust is secured. Contact ATN today to discover how we can optimize your team’s approach and achieve lasting results.