Jacksonville, NC asked in Consumer Law for North Carolina

Q: According to state law USC 1662B (North Carolina), am l actually required to make a down payment to purchase a car?

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1 Lawyer Answer
Lynn Ellen Coleman
Lynn Ellen Coleman
  • Consumer Law Lawyer
  • Licensed in North Carolina

A: USC is not a State law. "USC" stands for United States Code, which is Federal law. I cannot tell which US Code section you are referring to because you did not include the first section (--UCS----). However, there is no law, State or Federal, that requires a down payment to puchase a vehicle. It is perfectly legal for a bank, credit union, or finance company to require a down payment before they agree to finance your purchase of any new or used vehicle - or to not require one. There is no "law" against this. This is something to be worked out between you and the company that provides your financing. Making a down payment is a smart idea, however, because vehicles depreciate rapidly. If you do not make a down payment you will guaranteed owe more on the car than it is worth as soon as you drive it off of the lot due to the tax, title and license fees, especially if you include in your financing the cost of a warranty or service contract.

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