Can I back out of a car loan if I didn't make the down payment?

Since I haven't taken possession of the car nor have I made a down payment, can I back out of the loan? I bought a car from a dealer with the stipulation that I have to put down 20% to get approval for the loan. I've also signed a future purchase contract.

“Since you haven’t made the down payment, you can probably back out of the loan, but call the dealer to make sure.
At the very least, the dealer might be upset, but they won’t do anything. At the worst, they may sue you for breach of contract because you failed to deliver the down payment.”
Eric Schad
Answered on Jul 01, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
4.7/5 Rating on App Store