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Q: Can I get my down payment back on my car?
I put down $7,000 on my 2021 BMW X4, which was totaled after six months. Is it possible to get a refund on my down payment? If I buy another vehicle from the same dealership, I don’t think I should have to make another down payment.
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A: You can not get your down payment back on a totaled car.
As previously stated, down payments are non-refundable because they consist of funds that would otherwise be rolled into your loan. People put money down to prevent having their loan amount increased or to lower their monthly payments. Some lenders or car dealerships may also require it.
Your vehicle’s true cash value is established after it has been appraised by an insurance adjuster following an accident. Because your 2021 BMW X4 is still new and you paid a significant down payment, the true cash worth of your car should be enough to cover the amount of your loan. If any money is left over, it will be repaid to you to help you purchase a new vehicle.
When purchasing your next vehicle, you should consider purchasing gap insurance or new car replacement insurance as well. Both can provide you with financial security in the event that your vehicle is totaled.
