Car Fraud: Down Payment Fraud
This is another form of car fraud, when the car dealer does not credit the full amount of the customer’s down payment. This fraudulent practice of the dealer may occur when a customer pays the down payment in more than one installment or pays it in cash and forgets to get a receipt.
You can avoid this type of car fraud if you examine each line of the “Total Down payment” section of the contract.
You should also pay particular attention to the Deferred Down payment (payments to be made at a later date) and Cash lines. Make sure you were credited for the full amount you paid as a down payment. Another thing you should check is that the amount of the down payment is a specific amount that both of you agree upon during negotiations. And make sure to get a receipt for any payment that you do make.