Can I use my down payment after my car was totaled? Not at fault
I was recently involved in a car accident where I wasn’t at fault. My insurance is covering $21,000, and I still owe $18,000 on my car. I initially put down $11,000. Can I utilize that down payment at the dealership for a new vehicle? This is my first accident, so I’m unsure how this works. Any advice would be greatly appreciated, thank you!
Update: Thank you all for your helpful responses! I’m thankful for the extra $3,000, and since I have good credit, I feel confident moving forward.
Yes, you can definitely use the $3,000 difference from your insurance payout after paying off your remaining loan balance to put toward a new car at the dealership. Since you’re getting $21,000 from the insurance and owe $18,000, that leaves you with a $3,000 surplus.
Just be sure to discuss the situation with the dealership; they can help you with the financing options available for your new car. Since you mentioned you have good credit, you should have a range of options for financing. Good luck with your new car purchase, and it’s great to hear you’re feeling positive about it!