- Jul 25, 2022
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- Kien
A customer did not pay for their first payment, and now I have to repurchase the car. Does the dealer have to refund the initial down payment to the customer, or does the dealer get to keep it?
Dealer Buyback/ Customer payment default
- Thread starter edencars.baltimore
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- Sep 27, 2025
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- Pierce
From what I’ve seen, it usually depends on how the contract is written.
In many cases, if the buyer defaults right away, the dealer keeps the down payment to cover the loss
In many cases, if the buyer defaults right away, the dealer keeps the down payment to cover the loss
- Sep 27, 2025
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Hey, that’s a rough situation with the customer missing their payment! I’ve dealt with similar issues running a small dealership, and getting a solid payment system in place is crucial to avoid these headaches. When I was figuring out how to set up a secure transaction process, I found a really clear guide on building a payment gateway. It laid out the steps simply, helping me create a system to track payments and prevent disputes. If you’re looking to streamline your payment setup, it’s worth checking out. Hope you get the refund issue sorted soon!
Usually the dealer keeps the down payment if the customer defaults that early. It's considered non-refundable once the car leaves the lot, but check your state's dealer laws just to be safe.
