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Can I get my down payment back if the vehicle is totaled?

I just financed a new Ford Explorer, but the car got totaled in an accident after just five months. What happens to my $4,000 down payment? Can I get it back or apply it to another car from the same dealership?

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Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m sorry to hear about your accident. You can’t recover the down payment made on a totaled vehicle because it’s already been applied to your purchase.
Making a down payment reduces loan payments by reducing the total amount you have to borrow. Think of it this way: a down payment represents the amount you pay with cash, and a car loan represents the amount you pay with credit.
Following a total loss, your vehicle will be assessed by an adjuster to determine its
Actual Cash Value (ACV)
. As your car was fairly new, the insurance payout should cover your loan, and you can use the remainder to purchase a new vehicle.
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