Auto Dealer Delivery Scams

When buying a new or used car, it is a relief to close the deal. You finally agree to the price and terms of the purchase. Unfortunately, the dealership may call you a few days later to say the financing fell through. Sometimes, this is part of a dealer delivery scam that gets you to pay more for the vehicle.

If the dealership changed the terms of your purchase after delivery, you don’t have to accept the new terms. Contact a vehicle fraud attorney for legal advice on your car purchase.

What Are Auto Delivery Scams?

An auto delivery scam involves delivering a car with the pretense that financing is approved when it isn’t, then demanding the car back on worse terms. Also known as yo-yo financing, shady car dealers do this to get more money for the same vehicle. There are no specific laws against spot financing. So, you have to be aware of the practice to protect yourself.

Spot financing refers to conditional financing done without final approval by the bank or lender. Car dealerships use spot financing on the weekends or evenings when loan financing offices are closed. Dealerships can also use spot financing to close a deal quickly without waiting for final approval.

Unfortunately, a dishonest salesperson can use spot financing to change the purchase terms of the vehicle. They may agree to a financing deal you don’t qualify for to get you in the car or to get your trade-in vehicle. A few days later, they will demand the car back because the financing wasn’t approved. Scammers will use high-pressure sales tactics to get you to take the car at a higher price or worse interest rate.

Is Spot Financing Against the Law?

Spot delivery is not illegal. It’s a helpful option for buyers and sellers when they can’t get immediate approval for a vehicle purchase. Car buyers should know about a contingent sale and what it can mean if the deal doesn’t go through. Dealerships are not always clear when the sale is contingent or final.

How Can You Protect Against Spot Delivery Scams?

The easiest way to prevent a delivery or yo-yo scam is to get your financing preapproved before going to the dealership. You can go to your bank or credit union for a car loan before going to the dealer. With secured financing, you will know the financing terms before negotiating the sales price.

If you’re buying a used or new car with dealer financing, make sure you know if the deal is final or contingent on lender approval. If the financing is not approved, you can wait to take possession until after lender approval. You should keep your own car or truck if it’s part of the trade-in deal. That way, the dealership won’t sell it and leave you without a vehicle.

Be cautious when a dealership lets you take a vehicle off the car lot without signing a contract. The car-buying experience is complicated, and you should get any deal in writing before you take possession or hand over your trade-in.

What Are Online Vehicle Delivery Scams?

Online vehicle delivery scams are a different type of fraud. This can involve fake vehicle sales that try to get your credit card or personal information. Beware of buying a vehicle online unless it’s from a trusted source.

Some scammers can spoof emails, phone numbers, or online ads to make them look legitimate. A sign of an online vehicle scam is when the seller wants you to pay for the purchase with gift cards or wire transfers.

Do You Have To Return a Car After the Deal Falls Through?

With auto-delivery scams, the sales agreement generally will include language that the final sale depends on financing. You’ll have to return the new vehicle if the financing deal doesn’t go through. But you don’t have to sign a new contract or accept worse financing terms.

Your lemon law rights depend on the state where you buy the vehicle. States like California and Maryland have consumer protection laws that require the dealer to make a full refund if the financing doesn’t go through. They may also require the auto dealer to give you back your trade-in.

Can You Sue a Dealership for a Dealer Deliver Scam?

Changing the terms of the purchase if you don’t qualify isn’t against the law. However, intentional misrepresentation to defraud the buyer is illegal. Deceptive practices and bait-and-switch tactics are types of auto fraud. If the dealership lied about the terms and tried to change the sales contract, you can report it to the Federal Trade Commission (FTC).

Can a Dealer Fraud Lawyer Help With Delivery Scams?

If the dealership changes the purchase terms after you take the new car, you can return the vehicle without signing a new contract. If the dealer ripped you off with a financing scam, talk to a dealer fraud lawyer. A lawyer can help you get your money back after an auto dealer delivery scam. Contact a dealership fraud lawyer to find out about your legal options.