How to avoid the spot Delivery Scam?
The spot delivery scam is a common auto dealer scam that you should be aware of as a car shopper. The scenario of the scam is the following; you go to a dealership, you like a vehicle, negotiate the price, sign all the necessary documents and drive away. In other words, you get the car on the spot. After you take the car home and drive it happily for a couple of weeks, the dealer calls you back to inform that car financing fell through because of your credit score and you need to come back to sign new documents to get the car loan approved.
When you go to the dealership, the dealer will tell you that you need either a co-signer to get your car loan approved, or you need to add more money to the down payment, or just increase the amount of the monthly payments. In most of the cases, car buyers fall for this scam; they agree to pay whatever the dealer asks them to pay just to continue driving their vehicle.
More seldom a car shopper may refuse to do whatever the dealer says. In such cases, dealers usually threaten to repossess the vehicle. It should be noted that mostly customers with bad credit undergo such a scam. However, the dealer’s responsibility in such cases is to inform the buyer that the loan may not be approved with such a credit score. Obviously, this all is a trick that some dealers practice in order to sell their vehicles.
Avoiding the scam
- Know your credit score BEFORE you enter the dealership.
- Try to arrange car financing through a bank or a credit union, rather than a dealership.
- Do not sign ”conditional” contracts.
- Do not drive your new car home, until the loan is completed.
The spot delivery scam occurs to unsuspecting car buyers throughout the U.S. every day. If you think you are a victim of such a scam, you must contact a dealer fraud lawyer for legal help. The Margarian Law Firm is a California based full-service law agency with skilled personnel and aggressive customer protection strategies. Call us at (818)-553-1000 for more information.