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Who receives the down payment for a vehicle?

I'm putting $5,000 down on a $25,000 vehicle. I'm wondering who gets the check. Who receives the down payment for a vehicle—my lender or the dealer?

avatar
Scott Michonski Testing · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
When you choose to
put a down payment on a car
, the dealer is the one who gets that money—so you’ll want to make sure your check is addressed to them. If you’re unsure exactly what to write on your check, the dealership can let you know what information should be included. 
Since the dealership receives your down payment, buyers are often eligible for additional incentives—like discounts or bundled products—in exchange for putting a larger amount of money down on the car. Putting down more money upfront also translates to a lower calculated car loan payment and potentially lower interest rates. 
Whatever you don’t pay as a down payment for your
car loan
is financed through your lender. Subsequently, the calculated car payments you make each month to your lender are transferred to the dealership directly.
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