Cars & Vehicles
Auto Loans and Financing

Can a dealership repo your car for stopping payment or bouncing the downpayment check?


Top Answer
User Avatar
Wiki User
2015-07-14 16:03:26
2015-07-14 16:03:26

That depends. If this is a car that you've had for a substantial amount of time, and if the dealer has already "cashed" the contract and has been funded from the lienholder, then the answer is no. Once the dealer receives funding for the car from the lienholder, the lienholder is then transferred the title. Only the lienholder can repossess your car for non-payment.

This isn't to say that the auto dealer can't press criminal charges against you, but again, it depends on how long you've had the car. If you just recently bought the car and wrote a bad check for your down payment, you can probably count on getting a letter from the solicitor in your county.

An exception to what I said above is if the dealer has not been funded from the financial instution financing the car. In that case, the dealer can cancel the contract with them and demand that you return the car to them.

Another :Not only can they repo the car they can file charges against you for grand theft auto (because you used fraudulent means to secure a vehicle loan), grand theft (if the check was over $200), uttering of a bad check as well as possibly fraud. Better give the car back or make the check good and FAST!

Related Questions

Stopping a check on a car that has already been signed for is a breach of contract. Doing so will allow the dealership to pursue for costs that were promised to be paid.

No, you do not. It's a down payment, not a security deposit.

If you are purchasing an automobile can the dealership file a warrant for your arrest if you miss a payment?

No, the dealership cannot repossess your car for a downpayment. However, if there was a downpayment paid, and your check bounced, that's passing bad checks, which depending on the amount of the down payment, could be a felony. Read the fine print on your contract and you'll see that if the car is related to the commission of a felony, it puts you in default, which means the finance company can repossess your car. It's all in the fine print, but dealerships and finance companies are all in business to make money, and they pay people like myself very well to make sure their interests are covered. I'd suggest paying your downpayment.

No. Banks may ask but most lenders do not require a downpayment.

depends on the loan term that you were approved for, as well as your income. The higher your income, the higher payment you can afford, therefore the less down payment you need.

No. A downpayment is a nonrefundable form of collateral which is applied to the sale of the vehicle. For example: If a car cost $10,000 and you give a downpayment of 15% ($1,500) you've applied your downpayment to the purchase of the vehicle. If after a few months you no longer wish to own the vehicle, you will still own the principle amount left.

It could possibly be a felony depending on the size of the check. I've been served with an arrest warrant for stopping payment on a check before. It was for 750 dollars. It may be a misdemeanor or felony only if you stopped payment in an attempt to and with intent to commit criminal fraud upon the payee. Merely stopping payment on a check, even a post-dated check, is not a crime in and of itself. In other words there is no such crime as "stopping payment on a check." The crime is fraud, which may be perpetrated by stopping payment on a check.

If the dealership holds the title (Buy Here, Pay Here) then yes. If the bank you financed it with already has the title and you have your tags, then no. The dealership can, however, place a judgment on you for the amount of the down payment.

Down payment (or downpayment) is a payment (Paid on the Ground) used in the context of the purchase of expensive items such as a car and a house, whereby payment is the initial upfront portion of the total amount due and it is usually given in cash at the time of finalizing the transaction.

Unable to answer - it depends on how much is given as a downpayment - how long the payment terms run for - your credit score - etc - etc.

You will need to pay a down payment when you get a car at a new dealership.

In and of itself, no. If it's done with intent to defraud, it might be, but it's not the "stopping payment" part that's technically illegal, it's the "fraud" part.

The monthly payment of any vehicle purchased, regardless of manufacturer, is wholly dependent on how much money is used as a downpayment on the loan and the interest rate applied to the loan.

That's a rhetorical question! No one can answer that!

This can be a tricky situation. Did you give the buyer a receipt for the down payment stating it would not be returned if they backed out of the deal? If not, then you may have to give it back. Did you hold the car for them, and in the process miss a sale due to this? Here is what I would do. If you ended up selling the car anyway, I would return their down payment.

A dealership can only repossess your car if you do not pay in accordance with the sale agreement. If you did not pay the agreed down payment, the car may be repossessed.

Yes, but my bank will charge me for stopping the stop, anyways...

progressive because all of the deductions you apply for they add it into your downpayment so you would pay at least a $900 down payment

Once the person/place you gave the check to, cashes the check, you cannot stop payment.

YES, they can/did. You had paid NO money on the car so it WASNT yours. Do you think it makes you look like a GOOD credit risk when you stop payment on the DP??

There are websites that calculate your car loan payments. Most dealership websites have a payment calculater on there site that will allow you to enter your down payment amount and will calculate your payment after taking everything into play.

Once you drive the vehicle away from the dealership you have taken possession of it and cannot stop payment for any reason without committing fraud.

Copyright ยฉ 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.