Critical Scam Alert

Yo-Yo Financing

Also known as "Spot Delivery." It's the most dangerous post-sale scam because it happens after you think you've bought the car.

How It Works

The Simple Version

You sign the papers and drive the car home. A few days later, they call and say 'The bank rejected the loan, come back and sign a new contract.' The new contract always costs more money.

Here is the legal trap: Buried in the stack of papers you signed is a form often called a "Spot Delivery Agreement" or "Bailment Agreement."

This document basically says: "You are taking the car today, but the deal isn't technically done until the bank fully approves the loan."

The Scam: Unethical dealers know your credit score is borderline. They let you take the car anyway (Spot Delivery) to get you emotionally attached. They might not even submit the paperwork to the bank for a few days.

When they call you back, they have leverage. You've already shown the car to your friends. You may have already sold your old trade-in. They use this pressure to force you into a loan with 5% higher interest or demand an extra $2,000 down payment.

Warning: In some cases, if you refuse to return, they can report the car as stolen. This is why you must act fast and correctly.

Immediate Action

How to Protect Yourself

Rule #1: Verify Approval

Before you drive off, ask to see the "Loan Approval Notice" from the bank. If they can't show it, it's a Spot Delivery. Do not take the car.

Rule #2: Use Your Own Bank

If you walk in with a pre-approval check from a Credit Union, this scam is impossible. The financing is already done.

Avoid Bad Deals From the Start

Dealers who run yo-yo scams often sell problem cars too. Before you commit to ANY vehicle, run the VIN to check for hidden accidents, title issues, or odometer fraud.

Check Vehicle History

What's Next?

The Deposit Lock

Another trap that locks you in

Battle Plans

Step-by-step buying guides

Negotiation Scripts

What to say when they call you back

Calculators

Verify their numbers