Spot delivery - Misplaced Pages

Delivery of a vehicle to a buyer prior to completed financing Not to be confused with Spot contract.

Personal finance

Credit · Debt
Mortgage Car loan Charge card Credit card Unsecured personal loan Rent-to-own Student loan Pawn Title loan Payday loan Refund anticipation loan Refinancing Debt consolidation Debt rescheduling Bankruptcy
Employment contract
Salary Wage Salary packaging Employee stock ownership Employee benefits
Retirement
Pension Defined benefit Defined contribution Social pension Social security
Personal budget and investment
Active management Alternative investment Asset allocation economics growth Bond (finance) Cash Diversification (finance) Equity (finance) ESG Estate planning ETF Financial adviser asset plan planner independence Fundamental analysis Government bond Growth investing Growth stock Hedge (finance) Impact investing Investment advisory Investment performance Investment style Investor profile Market risk Passive management Portfolio optimization Speculation Stock Stockbroker Target date fund
See also
Asset pricing Bank Citizen's dividend Cooperative Credit union Economic bubble Financial deepening Financial inclusion Financial risk Fintech Guaranteed minimum income Market impact Risk-return spectrum Social dividend Structured product Sustainability Systematic risk Universal basic income Volatility (finance) Watered stock
v t e

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.

References

^ 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.
^ Carrns, Ann (18 April 2012). "Consumer Advocates Seek Halt to 'Yo-Yo' Car Financing". The New York Times. Retrieved 26 February 2018.

External links

FTC document on spot delivery

This finance-related article is a stub. You can help Misplaced Pages by expanding it.

Categories: