Spot delivery

Spot delivery (or spot financing) is a term used in the automobile industry that means delivering a vehicle to a buyer prior to financing on the vehicle being completed.[1] Spot delivery is used by dealerships on the weekend or after bank hours to be able to deliver a vehicle when a final approval cannot be received from a bank.[1] This method of delivery is regulated by many states in the U.S., and is sometimes referred to as a "Yo-Yo sale" or "Yo-Yo Financing."[2][3]

During a spot delivery, many consumers believe that the deal is final when in fact it is not.[3] Signed agreements allow the dealership the right to take the car back or renegotiate the agreement if it cannot obtain financing within a specific amount of time.[3]

References

Ducey, Joe (20 June 2016). "Spot delivery is a bad idea when buying a car". ABC 15 Arizona. Retrieved 26 February 2018.
Dunn, Catherine (24 November 2014). "Yo-Yo Sales: For Subprime Borrowers, Car Contracts With Many Strings Attached". International Business Times. Retrieved 26 February 2018.
Carrns, Ann (18 April 2012). "Consumer Advocates Seek Halt to 'Yo-Yo' Car Financing". The New York Times. Retrieved 26 February 2018.

External links

FTC document on spot delivery

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[ABC15-1] Ducey, Joe (20 June 2016). "Spot delivery is a bad idea when buying a car". ABC 15 Arizona. Retrieved 26 February 2018.

[InternationalBusinessTimes-2] Dunn, Catherine (24 November 2014). "Yo-Yo Sales: For Subprime Borrowers, Car Contracts With Many Strings Attached". International Business Times. Retrieved 26 February 2018.

[NewYorkTimes-3] Carrns, Ann (18 April 2012). "Consumer Advocates Seek Halt to 'Yo-Yo' Car Financing". The New York Times. Retrieved 26 February 2018.