The ‘spot delivery’ financing scam for a new vehicle seems to be par for the course these days, even with well known supposedly reputable manufacturers via their new or used vehicle dealerships.
From an ethical perspective, it’s really a shame that people engage in this sort of tomfoolery (spot delivery financing), but these days we are surrounded by criminals who will go to any length to mess with somebody’s peace of mind just to put a few extra bucks in their desperate pockets. We have heard of this scam so we thought it should be known, especially by those working in the automotive aftermarket. It may help you in some way just to be aware of it, even if you’re not financing a new vehicle.
So, your beloved vehicle that you’ve had for decades possibly finally takes a dump and there’s nothing you can do unless you want to spend a small fortune on a new engine, so you decide to trade it in for a new one. You’ve been working your ass off trying to keep your small business afloat after the pandemic because your sales have tanked. The price of everything you buy has skyrocketed especially interest rates on loans, but you’re hanging in there. You get a big sale that helps you pay down all your balances significantly and you know your credit will go back up, but you need a new vehicle asap and you’ll need to finance it until the next big one comes in and you can pay it off and avoid paying all that interest.
You don’t go the route of buying a used vehicle, because now the prices are so high for used it’s only a couple of thousand dollars more most likely to buy a brand new one. Now here’s where you think to yourself, well…maybe if I just buy a used vehicle from a private party for cash? The only problem there is that you’re busy as all get out and you need a reliable vehicle now and you don’t have time to drive whatever vehicle or vehicles around to your mechanic to get them checked out, so you pull the trigger and buy a new car. Now, you may fall victim to the ‘spot delivery financing’ scam.
The dealer runs your credit, makes you an offer, pushes the extended warranty to up the total and you sign the deal with a down payment, which they collect there on the spot (thus ‘spot delivery financing’). You turn in your keys for the trade-in, you say goodbye to your old pal and you’ve got a new baby. You drive home, your wife is stoked so you’re good to go there, and your new relationship with the new vehicle starts to blossom, until…BAM!
A few days later the dealer calls you and tells you that you need to put down more money or that you need to sign a new deal at a higher rate, or that they need paystubs, bank statements or tax returns. That seems a bit fishy to you. It’s all part of the ‘spot delivery financing’ scam rulebook.
From what we understand, you’ll need to check the law for your particular state. Bottom line, if they try to pull the old ‘spot delivery financing’ scam on you, you may have 10 days from the date of purchase to either abide by their new terms and sign a new contract, or return the car. They’ll have to pay you your deposit back and give you your trade in back. You also have the option apparently of filing a consumer fraud lawsuit against the company if you’ve been financially burdened. It’s really sad that people you should trust like a major dealer would do this to you, but it happens every day.
If you are planning to purchase a new vehicle, do your best to do it with good credit. If you aren’t able, be careful as you may fall victim to this disrespectful practice that is rampant in today’s world. And if you do and you need help, there are attorneys who specialize in spot delivery financing for your state.
Stay safe out there~!
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