Q: Can a dealership repossess my car if I don't pay the remaining down payment?
I initially paid a $2,000 down payment on a vehicle, but the dealer reported to the bank that I paid the full $4,000 down payment. The dealership asked me to pay the remaining $2,000 tomorrow but instructed me to tell the bank that I don't owe any remaining balance and not to mention that I only paid $2,000 originally. The signed agreement states that I paid the full $4,000, but there's no contract or terms about what happens if the remaining balance isn't paid. Can the dealership legally repossess the car if I don't pay the remainder?
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A:
That sounds like a really uncomfortable and suspicious situation, especially if the dealership is asking you to hide information from the bank. If the signed agreement states that you already paid the full $4,000 down payment, then technically, the dealership may have limited legal ground to claim that you still owe the remaining $2,000—at least based on the written contract. If there’s no signed addendum or written agreement that spells out additional payment terms, it may be difficult for them to enforce that remaining amount or repossess the car over it.
Repossession typically happens when there’s a default on the loan—like missing monthly payments—not on a separate dealership agreement for a down payment that isn’t reflected in the finance contract. Since the finance company thinks you’ve met the terms, the dealership may not have authority to repossess the vehicle without involving the lender or going through legal channels. If they did try to take the car back under these circumstances, it could potentially be seen as wrongful repossession.
You should avoid agreeing to lie or mislead the bank, and consider documenting everything the dealership has told you, just in case this escalates. If you’re unsure about how to protect yourself, you can ask the bank to confirm what they have on file regarding your financing terms—without necessarily revealing the dealership’s instructions. You deserve to feel safe and clear about a purchase this big, and it’s okay to push back when something doesn’t feel right.
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