The yo-yo financing scam also known as spot delivery scam is a common practice among some fraudulent dealers. The scam is usually practiced with those car shoppers who have low credit scores and who are aware of that fact. If you are thinking about buying a vehicle and you know you have got a low credit score, you had better think twice before entering the dealership.
It is advisable that car shoppers pre-arrange their financing before actually entering the dealership. You can either turn to a credit union or a bank or borrow money from a family member. The only thing you are not advised to do is turning to the dealership for financing.
Now, lets see how the yo-yo financing scam works. You enter the dealership without primarily arranging the financing, then you choose a car and the dealer arranges all the documents of financing for you. Later on, he/she informs you that you can take the vehicle home. You think all the paperwork is completed and you go home in your new vehicle.
A few weeks and sometimes even a few days past, the dealer calls you to inform that your car financing fail through. Do you know what this means? This means that you will have to either agree to pay higher interest rates to get a new financing or just return the vehicle and pay additional fees for the wear and tear.
In such a scenario the dealer knows that with your credit score you will not likely qualify for the deal, so he/she lets you take the car home and get familiar with it so that you cannot later on leave the vehicle.
Thus, if you have a bad credit score and you have not managed your vehicle financing beforehand, then you are the right person for the fraudulent dealer. If, however, you have been a victim of the yo-yo financing scam, you had better find a skilled local auto dealer fraud attorney. The lawyer may help you get remedies under the state and federal laws.
