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Can a dealership demand a higher down payment after the contract is signed and approved through the bank?
I was approved through a lender for a $1,000 downpayment on my car. I signed the contract, but now the dealership is saying they need another $1,000 because the bank said so. When I called the bank, they didn’t know what the dealership was talking about, and now I’m unsure what to do. Can the dealership require this?
Jack Walsh · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
This situation sounds a bit suspicious, and it was wise of you to contact the bank before paying the additional $1,000 on your
downpayment
. In general, additional payment can only be required if it adheres to the contract, so you should read the agreement carefully to determine if they are operating within the terms you both agreed to. Additionally, you should inform the lender that the bank was unaware of this requirement and ask to see where it is included in the contract before making any additional payment.
Furthermore, it’d be wise to ask for the request in writing and maintain records of all your communications with the dealership and bank. The more communication you have in writing, the better. In the unfortunate event the situation escalates, you’ll be thankful to have written documentation and avoid a he-said-she-said situation.
If you do end up having to pay an additional $1,000, you can feel better and recoup some of the payment by using the
Jerry
app to save on your car insurance
. The average Jerry user saves $879 a year on car insurance, and after providing you with a comprehensive cross-analysis of the best policies across over 50 providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. If you ever have any questions, agents are just a text away, and they even help cancel your old policy!
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