Refund of downpayment

davidelmwood

New Member
I financed a used vehicle and put $700.00 down. On the way home leaving from the dealership the vehicle overheated and broke down. I called the dealership, they towed the vehicle and primised to fix. I asked for another car and to back out of contract. They said I can not back out of the contract and I am stuck with the vehicle, but they will fix the problem. Next day, I got ahold of the financing company and inform them what the vehicle broke down immediately. Soon after, the dealership called me and said I mess up the loan when I called the finance company and I can apply to buy a different car now. Really I just want my downpayment refunded so I take my business esle where. By law am I entitled to have down payment refunded?
 
Well it would be nice to know what state you're in.

Many used cars are sold "as is". Do you have a warranty or not?

You are usually not entitled to cancel the deal because you had a minor mechanical problem with the car.
 
By law am I entitled to have down payment refunded?

Depends on the terms and conditions of your purchase/finance contract. If the sale was contingent on financing and the finance company denied the loan, the deal is cancelled and you're entitled to your money back but ONLY if the contract is written that way.

Read your contract to find out.

Next time you buy a car from anybody, first give it a nice long test drive, at least a half hour, on the highway and streets, making sure everything works right, and then have a mechanic check it over.

Most of the time you buy the car as is and it is not contingent on financing (if you can't get the loan you find another way of paying for it because you own it) and you wouldn't get any money back if you return the car. In fact, returning the car is a voluntary repo which has consequences of its own.
 
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