DocDon

Caveat Emptor: SPOT DELIVERY aka: 'The Sign and Drive'

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There's been a lot of discussions revolving around consumers who drive off a dealership's lot only to realize they really don't "own" the car yet, as the financing hasn't gone through.

Reports are surfacing where consumers are finding things aren't always what they seem, some even returning to the dealership finding not only did their financing not go through, but their trade-in has already been sold!

It's called "Spot Delivery", and here's what's being said about it:

South Carolina Dept. of Consumer Affairs:

http://www.scconsumer.gov/publications/consumer_alert/spotdelivery.PDF

Arizona Attorney General:

http://www.azag.gov/press_releases/may/2004/052504b.html

New Hampshire Dept. of Justice:

http://doj.nh.gov/consumer/sourcebook/autos_new.html

State of Michigan Consumer Information:

http://www.michigan.gov/documents/cis_ofis_spotdeli_23752_7.pdf

State of Georgia General Assembly:

http://www.legis.state.ga.us/legis/2005_06/fulltext/hb879.htm

New Mexico Attorney General:

http://www.ago.state.nm.us/divs/cons/cons_faqs_auto.htm

Court of Appeals, State of Kansas:

http://www.kscourts.org/kscases/ctapp/2003/20030926/89948.htm

State of Oklahoma requirement for spot delivery:

http://www.umvpc.state.ok.us/faqs.htm

State of Louisiana:

http://www.legis.state.la.us/leg_docs/04RS/CVT9/OUT/0000LEC1.PDF

State of Illinois Attorney General:

http://www.ag.state.il.us/consumers/0405_Auto%20Financing.pdf

Maine Attorney General:

http://www.maine.gov/ag/index.php?r=clg&s=chap9

Kimmel & Silverman, Attorneys At Law:

http://www.lemonlaw.com/spotdelivery.html

ConsumerAffairs.com

http://www.consumeraffairs.com/automotive/spot_delivery.html

The Washington Post:

http://www.washingtonpost.com/wp-dyn/articles/A43629-2004Oct18.html

MSNBC:

http://msnbc.msn.com/id/3660557/

The Better Business Bureau:

http://www.bbb.org/alerts/article.asp?ID=611

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That happened to me many years ago by Ford Motor Credit. They gave 3.9% and away I went on a late Saturday afternoon with my new Mustang. Monday they called and stated that Ford Credit wanted an additional $1,000.00 down payment to keep the 3.9% interest rate or the new rate would be 9.9%. I told them I would like my trade-in back and they could have the Ford. Well they sold my truck ... I gave back the Ford got a attorney that same day ... eventually they ended up giving me a check for what the trade in amount was listed on the contract plus 1,000.00 for inconvenience after my attorney called Ford Headquarters threatening a lawsuit. This stuff goes on everyday ... get the financing approved and in writing before you drive away.

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That happened to me many years ago by Ford Motor Credit. They gave 3.9% and away I went on a late Saturday afternoon with my new Mustang. Monday they called and stated that Ford Credit wanted an additional $1,000.00 down payment to keep the 3.9% interest rate or the new rate would be 9.9%. I told them I would like my trade-in back and they could have the Ford. Well they sold my truck ... I gave back the Ford got a attorney that same day ... eventually they ended up giving me a check for what the trade in amount was listed on the contract plus 1,000.00 for inconvenience after my attorney called Ford Headquarters threatening a lawsuit. This stuff goes on everyday ... get the financing approved and in writing before you drive away.

This is very true! This happened to a friend of mine, but he wasn't smart enough to do what you did. He just got stuck with a very high interest rate car and had a very hard time paying it. He eventually traded it in at a different dealership to get a new car with a better interest rate.

The car dealerships don't want you to know that you DON'T have to drive away with that new car the instant you sign the papers to buy it. Tell them you want to make sure the financing goes through first, and keep driving your old car until then. Otherwise they will sell off your old car and you won't be able to get it back after that, and you won't be in a position to bargain with them any further.

Even if you have bad credit, try to get financing before you go to the car dealership. You'll be in a better position to bargain with them, and you might get a lower interest rate. Always be prepared to walk away from the negotiating table if they aren't giving you the deal you think you deserve. They don't want to let you walk out that door before you buy a car from them.

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I was in the military when this happened to me, so I took a trip to the JAG. I was told that I could turn the car back in and that the dealership had to pay me the RETAIL value of my car.

Instead, the offered to pay the extra the bank wanted in a down payment so I kept the car and the interest rate!

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This happened to me with my current car. They'd originally quoted a specific down, but when all was said and done, it was a month later and the down payment was double. Of course, at the time I was rather stupid about credit and had serious credit issues, so I really didn't know how to handle it.

Worse, I got laid off right after I did get financing. Ugh.

Glad it's paid off now.

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I found my own way to deal with this issue - before I went to the dealership I got myself approved for a 0% credit card with a line a bit larger than the amount I would be financing on the car. When the dealer tried that crap on me I just told the F&I guy that he can tell his lender they can accept 5% on the loan as the papers now read or they can get 0% because I am prepared to turn the deal into a cash sale.

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Hello I just wanted to say hello and to let all the members know that I am currently a finance manager in the auto biz and have been for 15 yrs. I would like to help the members here if they have any questions concerning the purchase of a automobile. I feel I do a respectable job and do not fit into the normal " car guy " view that is to say the way people see automobile personal. Feel free to contact me at igetayes@yahoo.com

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this happened to me in 97, I picked the car up, then got a call two days later saying they needed 3x's the deposit to get us approved. I told them we couldnt afford that. They said I needed to bring the car in, I then told them that my wife had it and she would not be returning from california for a week or so(2500mile round trip just highway alone) amazingly enough, they worked out the downpayment. Scam artists 99% of em

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... I was told that I could turn the car back in and that the dealership had to pay me the RETAIL value of my car. Instead, the offered to pay the extra the bank wanted in a down payment so I kept the car and the interest rate!

Same thing happened to me last year! Bought a new 2006 Tuson from the local dealer and traded in a 2002 Ford Escape. There was some snafu with the financing and they called the next day and wanted an addtional $2K down to secure the loan. I told then forget it, and that I was retuning the Tuson.

Got to the dealer and they had already sold and delivered my trade to another customer. Told then that was thier problem, not mine and I wanted my trade back as the deal was not completed. After about an hour of standing my ground, the dealer 'discounted' the Tuson with a 'dealer rebate' of $2K and closed the deal.

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We ran into this when we got our Saturn Relay. Initially planned to trade in our Saturn S-Series wagon, but said we weren't quite sure. Decided to keep the wagon and get the Relay, but they said they'd already PIF the wagon so the note now belonged to GMAC.

Some quiet, calm tension rose up there in the dealership in which we said fine, we'll PIF the wagon here on the spot, and we're walking out the door without the Relay. A phone call and a few minutes later, and they'd "gotten it back" from GMAC so all was well.

Loan and rate held.

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Have any of you seen the Volkswagon ads "Sign Then Drive"? Is that the same type of deal you guys are talking about?

Allow me to answer this question first. No, this is not what they are referring to. a Spot delivery (if you had read any of the links listed above about it) is when the dealer has you sign a form of "bailment agreement" that basically entitles them to renig on the deal they offered for a variety of reasons.

this happened to me in 97, I picked the car up, then got a call two days later saying they needed 3x's the deposit to get us approved. I told them we couldnt afford that. They said I needed to bring the car in, I then told them that my wife had it and she would not be returning from california for a week or so(2500mile round trip just highway alone) amazingly enough, they worked out the downpayment. Scam artists 99% of em

The basic answer to the problem is "READ EVERYTHING YOU SIGN" If you read something that said every other peice of paper you sign is subject to some sort of approval and you still sign, I say it's your own fault.

I am a finance manager and I see how many people don't read the paperwork, or even worse.. they sometimes ask me to "shut up and show me where to sign" when I am explaining the disclosure boxes...

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This happened to me in grad school, when my credit was spotless. I couldn't afford a new purchase, and was doing a lot of freeway driving in L.A., so I needed a new, reliable car. I opted for a lease. Because I did not meet a minimum income requirement (remember, I was in grad. school), my dad cosigned (as he had for a previous lease). My dad hadhas AAA++++++ credit.

Three days after I drive a stinking Corolla off the lot, they call and want the car back, period. Toyota Motor Credit wouldn't accept an out of state cosignor on a lease. Period. They still had my crappy old trade-in, thank goodness. But it was a horrible experience.

I went to a GM dealership that set the whole lease up, dad out of state, no problem.

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This happened to me in grad school, when my credit was spotless. I couldn't afford a new purchase, and was doing a lot of freeway driving in L.A., so I needed a new, reliable car. I opted for a lease. Because I did not meet a minimum income requirement (remember, I was in grad. school), my dad cosigned (as he had for a previous lease). My dad hadhas AAA++++++ credit.

Three days after I drive a stinking Corolla off the lot, they call and want the car back, period. Toyota Motor Credit wouldn't accept an out of state cosignor on a lease. Period. They still had my crappy old trade-in, thank goodness. But it was a horrible experience.

I went to a GM dealership that set the whole lease up, dad out of state, no problem.

Sorry to hear you had a frustrating dilemma with Toyota. Sounds like the dealership did OK, they just dropped the ball in communicating with the bank. Glad GM could work it all out for you. By the way, did the GM car do well for you? Did the lease work out OK?

This story brings up a valid point..

Technically all vehicle deliveries are spot deliveries, to an extent. When you buy a car the Dealership finances your first based upon the stipulations it's bank would give the customer (with dealer discount).. The car is delivered.. THEN the dealer sells the contract to the bank, and it takes assumes the note. If the bank decides there was something wrong with the application process (i.e. customer doesn't mention that they aren't full time yet), then the bank calls the dealership and the deal either unwinds from their or is recontracted at terms agreeable to the bank.

Other times dealerships intentionally use the spot delivery forms, or bailment agreements, to get the customer out the door and in the car... Then three weeks later they call you... After you've already tinted the windows and installed the XM.. Tells you the bank wouldn't take the deal it's .75% higher, or you can take this special rate from GMAC and the price changes to this... But they don't tell you that over the phone, they make you come in..

This has apparently worked on poor credit customers for years (dateline or NBC did a show on it) but now dealerships are getting greedy and trying to pull this crap on good credit customers..

The whole thing really chaps my a$$ as it first steals my customers, then makes them wary of all salesmen next time they purchase... Doesn't help my cause at all and it certainly doesn't help them..

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By the way, did the GM car do well for you? Did the lease work out OK?

Yep, all was well. I kept the car through the end of the lease and then bought a Jetta. :) Pontiacs aren't really my thing, but it served my purpose.

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Yep, all was well. I kept the car through the end of the lease and then bought a Jetta. :) Pontiacs aren't really my thing, but it served my purpose.

Glad to see there was a little loyalty to the brand that helped you out... :|

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Glad to see there was a little loyalty to the brand that helped you out... :|

Only a car salesperson would say that. :)

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I had a simlar thing happen to me back in 1998 I was young and dumb and was "shopping" all over lowering my score like crazy...Anyways, I was trying to buy a Chevy SUV at the time and was told everything was ok Bla bla , by the so called finance cubicle nerd, and all I needed to do was give them my cash down.

So I did it unknowingly that I was not truly approved, Needless to say I drove the car for a month before they contacted me and told me the news, And I had been calling them asking when I was supposed to come down and finish the financing process because it was getting close to a month at that time. I was in the Army at the time and they called me at my unit and told me I wasn't approved and I had to bring the vehicle back.

Needless to say I was Poed and felt and looked like a JACK AZZ!!! i did get my money back after threating them I was going to go to JAG and tell them they were trying to rip me off. I definattly learned how f%C&ED up car dealers are after that one. I will never do that again ever!!:twisted:

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This just happened to me. I thought I had bought a 2005 Infiniti G35 drove it the entire month of June and they just picked up the car this morning. I got my $1500 down payment and am going elsewhere. Shady dealer fired all their finance people the next day.

Terrible experience. I believe I'm better off after the experience. Learned so much!

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