Victim Of Auto Fraud?

Spot Delivery scams, which are also known as Yo-Yo scams, also victimize consumers. Some dealerships will lie to consumers and tell them that financing for a vehicle’s loan or lease was approved, then permitting consumers with weaker credit to take possession of a vehicle before the financing has actually been completed for the vehicle’s purchase or lease, and in many cases a short time later the consumer ends up back at the dealership due to the dealership telling the consumer that the financing allegedly faltered. Consumers are often then told that they have to pay fees and higher interest rates – and sometimes a larger down payment than what they were told before – in order to be able to retain the vehicle.

These yo-yo scams are sometimes an unfortunate result of the process of spot delivery and therefore that is why they are sometimes called spot delivery scams, where vehicles are sold “on the spot” to consumers with weaker credit, at night and on weekends when banks and lenders are unable to approve loan and financing applications. When the loan and financing applications are declined and the vehicle has to be returned, consumers often are very embarrassed, though it is of no fault of their own, and the fault lies with the dealership. The consumer then might feel more of a need to purchase or lease the vehicle, due to embarrassment, and/or due to having developed an attachment to the vehicle, and some dealers know this, which is why they use spot delivery scams to target consumers with weaker credit to begin with.

A state might have a law in regard to spot delivery/yo-yo scams, requiring that any down payment or trade-in under the purchase and sale contract or lease agreement be returned to the consumer, as some dealerships do not wish to return the trade-in amount, and only want to keep said “credit” at the dealership to force you to get another vehicle with them, while others might not want to return any cash down payment that they received from you.