Can I apply my down payment towards a new car after my vehicle was totaled? Not at fault.
I was recently in a car accident where I was not at fault. The insurance company is offering me $21,000, and I currently owe $18,000 on my car. I had originally put down $11,000. Am I able to use that amount at the dealership to purchase a new car? This is my first accident, and any advice would be greatly appreciated. Thank you!
P.S. Thank you all for your helpful responses! I’m grateful to have the $3,000 from the insurance, and with my good credit, I should be fine.
Yes, you can definitely use your down payment to purchase a new car after your previous one was totaled, as long as you receive that payment from the insurance company. Once you settle with the insurance and their payout clears, you’ll have the funds available for your next purchase. Since you mentioned that you have good credit, this will also help you secure favorable financing options if needed. Just make sure to communicate with the dealership about your situation, and they can guide you through the process. Best of luck with your new car!