Spot delivery (or spot financing) is a term used in the automobile industry that means delivering a vehicle to a buyer prior to financing on the vehicle being completed. Spot delivery is used by dealerships on the weekend or after bank hours to be able to deliver a vehicle when a final approval cannot be received from a bank. This method of delivery is regulated by many states in the U.S., and is sometimes referred to as a “Yo-Yo sale” or “Yo-Yo Financing.”
During a spot delivery, many consumers believe that the deal is final when in fact it is not. Signed agreements allow the dealership the right to take the car back or renegotiate the agreement if it cannot obtain financing within a specific amount of time.
- ^ Jump up to:ab Ducey, Joe (20 June 2016). “Spot delivery is a bad idea when buying a car”. ABC 15 Arizona. Retrieved 26 February 2018.
- ^Dunn, Catherine (24 November 2014). “Yo-Yo Sales: For Subprime Borrowers, Car Contracts With Many Strings Attached”. International Business Times. Retrieved 26 February 2018.
- ^ Jump up to:ab c Carrns, Ann (18 April 2012). “Consumer Advocates Seek Halt to ‘Yo-Yo’ Car Financing”. The New York Times. Retrieved 26 February 2018.
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.