Down payment refund on car

Submitted by This_Neighborhood511 t3_10q9151 in personalfinance

I been seeing a thread go viral on Twitter talking about I can get my down payment back from a car dealership I noticed when looking back on the paperwork that the 4K I put down didn’t get credited to my loan when I originally financed does that mean I can start this process of getting my money back I’m sorry if this isn’t the place for this I’m just looking for guidance plz help the car is. A 2019 Subaru Brz btw not sure if it’s relevant information

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htimsj t1_j6okpxh wrote

Your down payment does not get credited against the loan. The loan is the amount of the purchase price after deducting the down payment. The dealership gets the down payment from you and the loan proceeds from the lender.

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TeflonShawn42069 t1_j6okwwm wrote

The down payment doesn't get credited to your loan because it was never part of the loan. You only borrow the part you don't pay up front for.

For example let's say a car costs $10,000 and you put $2,000 down.

Your loan will be for $8,000. The down payment goes directly to the purchase price it's never part of the financing.

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Werewolfdad t1_j6ol194 wrote

> I’m just looking for guidance

Its not a thing. The person on twitter put down a deposit to hold the car, then found 100% LTV financing at a bank.

Since the car was 100% financed, she gets her deposit back.

This means there was never a downpayment

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PM_Georgia_Okeefe t1_j6oltge wrote

If a car is $20,000 and you put down $4,000, then your loan is for $16,000. There's no "credit against the loan."

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This_Neighborhood511 OP t1_j6om0o6 wrote

See I gave them 4K and I was still financed for the 28 the car was listed for instead of 24k

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t-poke t1_j6onq29 wrote

Taxes and fees probably ate close to $3,000 of that. Did you buy an extended warranty or protection plan? That would eat up the rest of it.

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This_Neighborhood511 OP t1_j6oo5ua wrote

No sir I already have a speciality shop that works on my car so I didn’t opt in for anything or that they did give me a warranty that lasted 30 days at no cost to me

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itsdan159 t1_j6ow0qb wrote

The bill of sale should have everything broken down. It is possible they messed up, pull the paperwork and check.

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PM_Georgia_Okeefe t1_j6opgkt wrote

Were there dealer fees, taxes, or registration fees? Did you read the fine print?

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sleepyguy22 t1_j6okad7 wrote

Yeah no that's a bunch of bullshit. A downpayment reduces the amount you have to take out in a loan.

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HenryKringle6000 t1_j6okoev wrote

If they didn’t credit you for the money you gave them then they stole from you.

But, I would double check … because $4k will barely cover the taxes and fees these days. Is it possible the $4k was applied but none of it actually went towards the base cost of the car itself?

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This_Neighborhood511 OP t1_j6ombxb wrote

They didn’t I was financed the original asking price that didn’t have 4K subtracted

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1hotjava t1_j6on2ok wrote

u/henrykringle6000 is saying your $4k probably covered the taxes owed. So the financed amount most likely is what the asking price was.

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HenryKringle6000 t1_j6oojb9 wrote

Yep, if the sticker price is $40k … then there is probably $4k in taxes and fees. So, total cost is $44k. With $4k down you finance $40k

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This_Neighborhood511 OP t1_j6opas0 wrote

It was 28k not sure if that information is relevant to how much taxes and fees should have added up too this late I just wish I wasn’t so misinformed 😅

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[deleted] t1_j6opz3g wrote

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kishkangravy t1_j6os1yp wrote

This should have been caught when the finance manager and the accounting office did the deal. And the accounting figures should be on the invoice you received when you picked up the car. If you don't have it call and ask the office manager for it, it will show what happened to your 4000 or whatever the amount was that you put down.

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[deleted] t1_j6okqii wrote

Down payments don't get credited to a loan.

The loan amount is the price of the car MINUS your down payment.

Example:

Car Price : 20,000

Down Payment: 5,000

Your loan amount should be 15,000

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This_Neighborhood511 OP t1_j6okz76 wrote

Ok so I got absolutely robbed I’m currently trying to get a copy of the original finance contract from the dealership how can I start the process off getting it back

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t-poke t1_j6ol3uj wrote

I highly doubt you got robbed, you are likely not interpreting the numbers correctly. The sales contract will lay everything out.

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This_Neighborhood511 OP t1_j6olb3m wrote

Maybe I am is there anyway once I get the paperwork I can block out personnel information and ya can show me where I’m misunderstanding

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1hotjava t1_j6onbcu wrote

Never get rid of the paperwork when buying a car. They don’t have to provide you copies after the fact so you are at their mercy to actually provide it.

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This_Neighborhood511 OP t1_j6oniv2 wrote

Thank you for letting me know I’ll take this information and definitely use it in future financial decisions I appreciate it and thank you for replying

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BoxingRaptor t1_j6omutb wrote

When did you finance, and why do you not still have your own copy?

Anyway, the numbers should all add up very clearly. There should be a line by line breakdown of what it is that you're paying for.

Most of the time with threads like these, it turns out that the OP signed up for a warranty plan and didn't realize it. Those can usually run a few thousand, so that may very well be what happened. If that turns out to be what happened with you, you can usually cancel those warranties.

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This_Neighborhood511 OP t1_j6onbmm wrote

I’m not gonna lie to you I just turned 21 I don’t know much about finances and just recently took an interest in it cuz I’m welding now and I wanna secure my future and lost my paperwork when I was moving out my mom can’t find it either

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BoxingRaptor t1_j6oohlu wrote

Understood. Just try not to panic. As everyone is saying, it's highly unlikely that you actually got screwed here (well...not more screwed than a dealership is normally expected to screw, anyway). The "missing" $4,000 is almost certainly various taxes and fees, and possibly some type of warranty. The taxes and fees you can't do anything about, that's a part of buying a car, but if you did sign up for some sort of warranty, you may be able to cancel that.

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This_Neighborhood511 OP t1_j6ooykm wrote

Thank you I’m not l trying to panic that’s just a sizable amount of money for someone in my position and age I just wanna make sure my hard earned money was used and applied properly and didn’t just line someone’s pockets as a bonus

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Celodurismo t1_j6owe2m wrote

>once I get the paperwork

Bro you got the paperwork already, they gave you a copy when you got the car. Did you get rid of it?

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This_Neighborhood511 OP t1_j6owndq wrote

I did it got lost in the process of moving I asked my mother if she had it I looked everywhere and can’t find it

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HenryKringle6000 t1_j6oqk8k wrote

They should have handed you an envelope with a carbon copy of the sales agreement. It’s not in your glovebox?

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This_Neighborhood511 OP t1_j6oqw0t wrote

No that’s the packet of paper that got lost while moving I didn’t keep it in my car cuz of the sensitive information but I definitely didn’t have it put away properly and I really regret that currently seeing if the dealership is willing to provide me with a copy its been less then a year so there is no way that they trashed it but they are apparently not required to share that with me so I’m hoping that they will give me that information

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HenryKringle6000 t1_j6orig4 wrote

They probably charged add-ons as well… wheel locks, all weather floormats, paint protection, etc, etc. That’s how they make their money.

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