Spot Delivery Scam
Spot Delivery Scam - Overview
SUMMARY: Dealer sells you the car, you drive off the lot. 1 week later the dealer calls to say the "financing fell through". The dealer insists you owe an additional $750 cash plus the interest rate will increase on the 5 year loan.
Spot Delivery Scam - How It Works
What Happened: This is known as the "Spot delivery scam". What happens is, you, knowing your credit is damaged, are fully aware that your initial "bad credit loan application" will probably be subject tocloser scrutiny and higher interest rates.
However, it seems as if you filled out all the paperwork and "finalized the deal" AND this is precisely how unknowing applicants get scammed by "financing with the dealer".
Subject to financing clause - Somewhere buried in the fine print is a clause stating your loan is "subject to financing". This clause enables the dealer to recall your vehicle - if for some reason your loan is NOT approved - even though you signed the contract and thought it was a "done deal". This clause is binding unfortunately...BUT... you can fight it by getting your own financing - even after you've driven off the lot - see below
Spot Delivery Scam - How to Prevent it
How you avoid the "financing fell through" scam: Always get your own financing from an outside lender - never finance at the dealer you buy the vehicle from. There is no rule that says you must get financing from the dealer, however they will push for it. Don't give in.
By financing with an outside lender you are negotiating the purchase price of the car - not the monthly payment - which is a sign the dealer may attempt the "financing fell through" scam.
If you do get caught up in the scam, you can always sign up with www.MyAutoLoan.com. You can get your own financing very quickly - with bad credit as well: : Bad Credit Auto Loan Review. You can get financing in about 48 hours for the original vehicle price - deliver a check to the dealer - done deal.
If you do finance with the dealer make sure the financing goes through BEFORE you drive off the lot.
The sly auto dealer knows you'll give little resistance to their "callback" since you are a "bad credit borrower"and usually "expect high interest rates". The odds are, you'll cave in and "make it back to the dealer pay extra and re-sign the cotract for the higher interest rate... that you don't deserve.
More Bad Credit Auto Loan Scams
Spot delivery scam
Sold "As Is" scam
Phony credit score scam