Finance:Spot delivery
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Short description: Delivery of a vehicle to a buyer prior to completed financing
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Spot delivery (or spot financing) is a term used in the automobile industry that means delivering a vehicle to a buyer prior to financing on the vehicle being completed.[1] Spot delivery is used by dealerships on the weekend or after bank hours to be able to deliver a vehicle when a final approval cannot be received from a bank.[1] This method of delivery is regulated by many states in the U.S., and is sometimes referred to as a "Yo-Yo sale" or "Yo-Yo Financing."[2][3]
During a spot delivery, many consumers believe that the deal is final when in fact it is not.[3] Signed agreements allow the dealership the right to take the car back or renegotiate the agreement if it cannot obtain financing within a specific amount of time.[3]
References
- ↑ 1.0 1.1 Ducey, Joe (20 June 2016). "Spot delivery is a bad idea when buying a car". ABC 15 Arizona. https://www.abc15.com/news/let-joe-know/spot-delivery-is-a-bad-idea-when-buying-a-car. Retrieved 26 February 2018.
- ↑ Dunn, Catherine (24 November 2014). "Yo-Yo Sales: For Subprime Borrowers, Car Contracts With Many Strings Attached". International Business Times. http://www.ibtimes.com/yo-yo-sales-subprime-borrowers-car-contracts-many-strings-attached-1726648. Retrieved 26 February 2018.
- ↑ 3.0 3.1 3.2 Carrns, Ann (18 April 2012). "Consumer Advocates Seek Halt to 'Yo-Yo' Car Financing". The New York Times. https://bucks.blogs.nytimes.com/2012/04/18/consumer-advocates-seek-halt-to-yo-yo-car-financing/. Retrieved 26 February 2018.
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