Avoid Car Dealer Scams: Spot Delivery
Spot Delivery occurs when the consumer has chosen the car, filled out all the paperwork and the car loan application with the car dealer’s finance department. The car dealer will tell the consumer that although the car loan hasn’t been “officially” approved yet, the consumer can drive the car home.
However, when the consumer does so the dealer calls a few days later and lets the consumer know that the car loan wasn’t approved at the interest rate previously discussed. The dealer will also tell that the buyer was approved at a higher rate.
Thus, the consumer will most likely have to pay thousands of dollars more than he/she expected. When the consumer tries to walk away from the deal the car dealer will probably inform that they already sold your trade-in so you have no options. The dealer will also tell you that they will sue you if you don’t agree to the new terms. Check your loan agreement. If it includes a “writ of rescission,” which means that you agreed to pay a higher interest rate if you did not qualify for the original loan then you are probably stuck.