Are down payments for cars refundable?

I was trying to get a car but i needed a co-signer,so my dad argees to do it.Finally the sales man tells me that he was going to put the car in my dads name and the finance it under my dad,but the sales man told me that he needed me to put 600 downpayment on the CAR so that when they did do the finacial procees they have proof that the downpayment for the CAR was made.Before i put any money up i asked him is my money refundable just incase he told me yes all money is refundable so i put 600 downpayment for the CAR.So the next day we conflict about regerstrating the car.Which he wanted it done in Mich but im in Cali so my dad said no to the deal.I call the dealer back and tell him we will p on the deal,i ask for my money back,he tells me that i am unable to get it back cause it was used as a loan proceesing fee.I really need some help,i dont get how i was charged for a loan proceesing fee that was not in my name. There was no papre work done so there were no downpaymwnt agreements.