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TACTIC

Spot Delivery / Yo-Yo Financing

You drive home, then dealer calls saying "your loan didn't go through." Predatory tactic.

// Why it matters

Spot delivery is when the dealer lets you drive the car home before the financing is fully approved. Days or weeks later, the dealer calls saying "your loan didn't go through, we need a higher rate or a bigger down payment." This is sometimes called yo-yo financing and is illegal in some states. Defense: NEVER drive a car home until the loan is fully funded. Wait for the dealer's call confirming "we have the loan." If they pressure you to take it before final approval, walk.

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