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Can a car dealer return a down payment?

If you back out of the deal, will the car dealer return your down payment? I want to put a down payment on a car, but I have some concerns about it.

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Most
down payments
are non-refundable, so be certain before you sign the dotted line.
If you, the buyer, cancel the vehicle order and decide not to go through with the sale, the dealership is not legally obligated to refund your down payment.
However, there may be some circumstances in which you are legally entitled to get your money back. For example, if the dealer cancels the purchase order within 10 days after you purchase the vehicle. (You will have to return the car to the dealer within 24 hours and they’ll return your down payment.) This most likely only occurs if your loan does not go through.
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