All Sales Final? Maybe Not. Yo-Yo Deals.

[Skye]

https://www.npr.org/2023/02/04/1152932192/yo-yo-car-sales?ft=nprml&f=

https://www.lendingtree.com/auto/can-you-back-out-after-signing/

https://www.nclc.org/wp-content/uploads/2022/08/letter-to-colorado-mvdb-jan2019.pdf

https://sbg.colorado.gov/sites/sbg/files/DR 2434_e_2.pdf

I wasn't familiar with "Yo-yo financing" or deals; it's when the dealer cannot secure financing under the signed agreement (either honestly, or not) and renegotiates the deal.

It reads like this practice or problem is primarily within the local, used car dealer arena. If interested further, check within your state for any supporting laws.

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[Inthehighdesert]

I know there’s time when financing legitimately falls through. But that first article is something else. States should go after licenses for that type of ……. . It’s really shortsighted on the dealers part as well. As a consumer if this happened I‘d go after the individual at the dealer as well as the dealership itself.

 

[twbthird]

The most frequent victims of the spot delivery scam appear to be people that do not have the wherewithal to 'go after' the perpetrators. Sometimes, the justice you get is the justice you can afford.

What is most depressing to me is dealer lobbying organizations defending this practice, as if buyers with lousy credit were somehow taking advantage of innocent car dealerships.

Is it any wonder that many of us refer to them as "stealerships"?

 

[ice445]

I think the main reason a lot of dealers rely on this is because of the hours they want to be open. Saturdays and Sundays are the most popular times that people buy cars. But obviously banks are open only until 5PM in most places, and generally closed on Sunday. So it creates a situation where the deal will be waiting on approval for the next morning while they let you drive home with the vehicle.

But of course, the problem is that some shitty dealers will abuse the hell out of it, quoting you some outlandish rate that your credit couldn't possibly get you so that they can capture your trade in. I like that law that was mentioned about not letting them sell your trade in until a deal is officially funded. That seems like simple common sense.

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