Spot Delivery Fraud. How to Avoid It?

Spot delivery fraud is one of the most popular dealer frauds. Sometimes it is also referred to as Yo-Yo financing. Dealers use this scam for people with a bad credit, who are not able to get a good APR anyway.

The whole point of the scam is giving the buyer a car “on the spot” with an aim to “yo-yo” him back later on to ripoff more money.

You can tell you are a spot delivery fraud victim if your dealer says you don’t have any problem with your credit report and you can get a good APR on the loan. You get the keys handed on and drive away happily, thinking you will get the loan you were promised.

But after some days or weeks you receive a call from the dealership letting you know your loan fell through. You are asked to come to the dealership to have things settled down. In case you refuse you are told you have no legal right to keep the car. Keep in mind that is a real scam! If you have signed purchase documents, the car is yours even though it doesn’t get financing.

If you fall for the scam, you are probably going to pay a higher interest rate, a fee or get someone to co-sign.

How to avoid Spot Delivery Fraud: Never drive the car away until you haven’t got financing. Read all documentation and research on financing options yourself.

If you have already become a victim of Yo-Yo financing, contact your Attorney General or Better Business Bureau to get the dealership penalized. Another infrastructure you can get more information from is the DMV.

You can also get a consultation from a Dealer Fraud Attorney.

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