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Jose
I think it depends on how much your down payment was and how much tax, tags, title service, etc. are.
For example if you purchased $5,000 car with $500 down and Sales Tax in your state is 6%, tags cost $50 and title service is $100 I would say that since the dealer is out the $450 he had to pay to others plus the internal cost of inspecting, washing, etc.
he is entitled to keep the down payment.
On the other hand if your down payment was substantially more than the money the dealer had to spend you should expect to get back your down payment less what he spent and perhaps $100-$200 for inspecting the car.
Of course you should ask for the tags and the paperwork from the state along with receipts for the money he says he spent. If he can’t produce them he is trying to con you and you should file a complaint.
Hope this helps
Jerry-the-bookkeeper