Q: Can I get my down payment back if the vehicle is totaled?
May 03, 2021

I put down $4,000 when financing my 2020 Ford Explorer. The car ended up getting totaled after five months. Can I get my down payment back? I don't think I should have to put down another down payment if I'm buying with the same dealership again.

Answer provided by
Emily Maracle

“Down payments are non-refundable since they comprise money that would have normally been rolled into your loan. People make down payments to avoid having a higher loan amount or to reduce their monthly payments. It can also be a requirement for some lenders or dealerships.

When your vehicle is assessed by an adjuster after an accident, the actual cash value is determined. As your vehicle is fairly new and you made a larger down payment, the actual cash value of your vehicle should cover your loan amount.

If there is any additional money left over, that would go back to you to help you purchase a new vehicle.

With your next vehicle, you should consider getting gap insurance or new car replacement insurance. Both can protect you financially in the future if your vehicle is totaled. “

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