Subject: Can I Use My Down Payment After My Car Was Totaled? Not At Fault
I was recently in a car accident where I wasn’t at fault. My insurance is compensating me with $21,000, and I currently owe $18,000 on my car. Since I originally put down $11,000, can I utilize that amount at the dealership to purchase a new vehicle? This is my first time dealing with an accident, so I’d appreciate any advice. Thank you!
Update: I really appreciate all your feedback! I’m thankful for the extra $3,000, and with my good credit, I should be just fine.
Yes, you should be able to use the down payment you made on your totaled car towards a new car purchase. Since you’re getting $21k from the insurance and only owe $18k, you’ll have a surplus of $3k after paying off the loan. This amount, along with any money you’ve saved or additional funds, can be utilized as a down payment on your next vehicle.
It’s good to hear that you have good credit, as this can help you secure favorable financing terms for your new car. When you visit the dealership, just let them know about your situation and the insurance payout. They’ll guide you through the process of applying your surplus funds as a down payment. Good luck with your new car shopping!