This type of financing is sometimes called a "spot delivery." It is based on the language of the purchase contract. So I bought a car from a used car dealer. A down payment goes toward a vehicle's value, while a deposit is meant to hold a vehicle until you can return to purchase it; the two are often confused. Look at your purchase contract. Several days later, the dealer calls you to say that the financing has fallen through. Most dealerships use a "purchase order" form that states that any deposit is nonrefundable. Advantages of Down Payments. You sell your car back to the dealer because it's not the right fit for you, but the dealership only offers you $10,000 for it. Dear Consumer Ed: I recently purchased a used car with an agreement that I would leave the car at the dealership, the dealer would repair a couple of items, and I could pick up the vehicle in two days. Leasing down payments, however, are not returned. You sell your car back to the dealer because it's not the right fit for you, but the dealership only offers you $10,000 for it. Most consumers that choose to lease a new car instead often do so because less money is required up front. If you buy a car that is financed through the dealership, the dealer CAN cancel the contract, but only if it notifies you within 10 days of the date on the purchase contract. It works like this: You have an auto loan with a balance of $15,000, and you want another vehicle that's selling for $16,000. This situation is known as a spot delivery or yo-yo auto sale and it's illegal. That's the long yellow document that says "RETAIL INSTALLMENT SALES . It's been three weeks now and the dealer won't produce the car or refund my money. Typically when purchasing a new vehicle outright, a buyer should prepare to hand over around 20% of the purchase price as a down payment (this is just an estimate—some dealerships require more, some less). Explain in the letter that if they do not return the deposit you will file suit against them. The following day, I received a call saying my loan had been approved, and I should return to re-sign for adjusted, lower monthly payments. But you do get an option to keep the car, the car you now love . Put in the letter that the failed to do the financing terms that were stated in the contract of the deal. This type of financing is sometimes called a "spot delivery." It is based on the language of the purchase contract. If it's too late for that, being able to return the car typically depends on the dealer's policies. The easiest way to find out whether a dealer accepts returns is to ask — ideally, before you make a purchase. Both parties have done everything required by law to sell (or in your case, buy) the car. The best bet is to send a demand letter with a delivery confirmation, demanding the return of your deposit for the return of the car. If you decide you don't want a car you just bought, many auto dealers are unlikely to let you return it, but there are exceptions. Answer (1 of 9): A down payment is made to make legal a contract. Ok. Our auto fraud attorneys can help you return the used car to the car dealer if the car dealer lied about financing. Returning a Used Car to the Dealer for Yo-Yo Financing. They made a spot sale and had me sign the sales contract stating I would make payments to the credit union they found for me. You may be able to get your car down payment back, all depending on the reason you left one and where the dealership applied the money. This contract language, known as a "liquidated damages" clause, provides that if the consumer does not go ahead with the purchase, the dealership can keep the deposit as damages. Put simply, you add the remaining balance of your current car loan onto your next one. As shown below, these clauses are frequently not enforceable. Im in Arizona. So, you buy a car, sign the paperwork and drive off the lot. Either way, the buyer promises to purchase said vehicle for an agreed to price within a cer. Two weeks ago, I signed a contract to purchase a used car with financing pending. Put simply, you add the remaining balance of your current car loan onto your next one. Dear Consumer Ed: I recently purchased a used car with an agreement that I would leave the car at the dealership, the dealer would repair a couple of items, and I could pick up the vehicle in two days. That vehicle can be in the dealer's possession, or not. A USA Today report found 10 people who have expired leases who, when they went to return their vehicles to the dealership, learned that the dealer wouldn't take them or made returning the . Typically a buyer makes a down payment to secure a contract to purchase a vehicle. That's the long yellow document that says "RETAIL INSTALLMENT SALES . 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