Can I Get My Car Downpayment Back?

You may be able to get your car down payment back, all depending on the reason you left one and where the dealership applied the money. A down payment goes toward a vehicle's value, while a deposit is meant to hold a vehicle until you can return to purchase it; the two are often confused. Leasing down payments, however, are not returned.

Deposits

To determine if you can get your deposit back, read your receipt. As long as you did not take the dealership's car, leading the dealer to believe you would be back to make the purchase with your own financing or cash, most dealers will return your deposit, although some may give you a hard time. If you did drive the dealer's vehicle for several days, it can rightfully charge you cleaning fees, for the mileage you drove or for any damage that occurred to the vehicle while in your possession.

Down Payment Toward Purchase

You should be able to get your down payment back if you purchased a vehicle. However, you should be sure to discuss your intentions with the dealer beforehand. If you left a down payment but told the dealership you wanted it back upon purchasing the vehicle, your down payment will be returned if it was not applied toward the vehicle's purchase price when you obtained financing. Also, if you total your vehicle, you will not receive your down payment back, but will receive money for any equity in the vehicle after the loan amount is paid off, if any is left over.

Vehicle Leases

Unfortunately, if you leased a vehicle and paid every payment up front, you will not receive any of the money back. Your leasing bank is listed as your insurance policy's loss payee, a requirement for leasing. In the event of a loss, you not only lose your down payment amount, but will not receive any equity refund after the loan is paid off, if any exists. For this reason it is not advisable to put down a lot of money when leasing.

Reporting a Dealer

If you believe the dealer is unfairly keeping your down payment, you may have recourse to get it back. Because many dealers are regulated by a state's motor vehicle office, you can call to put in a complaint. If your complaint is valid, the dealership is called and asked to explain why the money was kept. Without valid reason, the dealer may be investigated. Sometimes this is all it takes to get a dealership to return your funds. Otherwise, you can call your state's attorney general or file a complaint with the Better Business Bureau.