I purchased a new vehicle at a southern California dealership on 2/27, signed the paperwork, gave them a $1000 down, and picked up the vehicle on 2/28. Turns out the financing for the agreed upon terms was never approved by the bank because they needed income verification, yet they never told me this and allowed me to still take the car (spot delivery / yo yo scam?) For 3 weeks now I've been trying to get the lender to approve my income with no success and now the dealership wants me to come back and pay a higher interest rate that "doesn't require income verification". I know I'm getting scammed and should just return the vehicle but I'm afraid they will try and keep my down payment or charge me mileage? What are my options?
If the dealer cannot get financing and sends the buyer notice that they are exercising their right to cancel the contract, then the dealer must refund the full downpayment to the buyer, they cannot keep any of it. If you cannot get financing on your own, then that is not spot delivery because the standard contract does not state that it is contingent on the buyer getting financed on his/her own. If the dealer does not exercise its right to cancel, then your first payment is due to the dealership and all payments are due to the dealership, unless given written notice of assignment to a finance company.
If you believe that you were scammed, save all your documents and don't leave any of them in the car, keep them in a safe place, and have an experienced car fraud/consumer lawyer, review the documents and your case facts in private, not on a public website, such as this.
#YoYoScam #ConsumerProtection #AutoFraud
Assuming your car dealer is using the standard Reynolds and Reynolds "retial installment sale contract" (a long yellow sheet to you) the box in the top right hand corner describes dealer as "seller/creditor" and therefore, by contract, it is the dealer who actually agrees to finance the transaction. Then, in reading the contract further, you will likely find that the dealer has "reserved" the right to unwind the deal and return the consumer's money and get the car back IF the dealer cannot "assign" (which essentially means 'sell') the contract to another business which it regularly does business with AT a rate (profit) it likes. So, it is the same (essentially) as what most lawyers learn at law school, which is "I will sell you a car if I feel like it" or an illusory contract. Dealer holds all cards and you hold almost none. That all said, further in to the contract it typically would say that IF dealer chooses to unwind the deal, he MUST give you a 100% refund and return trade in and you MUST give back car immediately. The letter, if there was one, canceling the deal almost certainly says this too. Read all of them. This is WHY attorneys almost universally say, " we will need to see and review all related writings" in order to opine, as the devil is in the details. That ALL said, they have no contractual or legal right to "re-negotiate" and do so only from the position of intimidation. Talk to a consumer protection attorney like Mr. Stempler and get some help. You will be glad you did.
http://www.calemons.com/beware-of-the-yo-yo-car-deal/
