CAR DEALER SAYS BRING THE CAR BACK! RE-SIGN CONTRACT? LOAN SCAM, FRAUD The Homework Guy Kevin Hunter

the car dealer wants their car back or wants you to resign papers it could be a spot delivery scam by the finance office hi i'm kevin hunter the homer guy here today with the amazing elizabeth it's your lucky day because you've arrived at the home of super high intensity training for car buyers for those of you who drove that new or at least new to you car home from the dealership only to get a call later well it could have been a few days or a week or two later to say a mistake happened or we need you to sign new paperwork or the financing fell through you could possibly be the victim of a car dealer yo-yo financing scam of all the shady things car dealers are known to pull this is by far the most common and unfortunately a widely used scam in dealerships today so what's a spot delivery you ask well here's what happens the dealer finance officer first leads you to believe that everything is good to go with the car you just bought you think you're good to go yep then you get a call a short time later to say you have to bring the car back but for this kind of nonsense to happen the dealer had to know something the moment you drove away in the car they did not officially have you approved for a car loan they had you sign all the paperwork so you thought everything was good to go and you took delivery of the car you left thinking the loan would have been approved and the car deal is done but it's not here's how they set it up the finance manager will look at the customer's credit history their finances the type of car and even the structure of the car deal he then makes an assumption that a given lender will approve the customer at a given interest rate and loan term so he has you the buyer sign all the paperwork well what's his plan well he plans to work on it later maybe it's saturday or it's late in the evening and the dealer wants to get as many people out the door as possible the finance man believes he can get a loan approved for you at a later time so he sends you down the road in this new vehicle and if you're the car buyer in this situation you go home oblivious to the fact that you don't actually have a loan approval and the dealer doesn't tell you anything otherwise you're clueless that a potential problem is looming there's a reason the car dealer does this they want you taken out of the market so you can't buy anything else exactly so you think you have a car deal you think you're done shopping that's right spot delivering a customer keeps the dealer in the driver's seat and gives them the first shot at selling you a car if you think this is the worst thing they could do to a customer to stop them from shopping elsewhere well think again it could actually get a lot worse than this as kevin mentioned weekends and late evenings are the most common time for a spot delivery to happen there's a number of reasons for this but most likely is that the bankers were offline or shut down at the moment of the sale so the dealer rolls the dice the finance officer has nobody to talk to on the bankers end and if there happens to be any possible challenges with either the car buyer's credit or the car they're trying to buy it could blow up in their faces the buyer signs all the paperwork like everything is done and heads home thinking this one's history but it's not it's not to be clear and fair not all spot deliveries are scams and not all spot deliveries are done for the purpose of being deceptive it might surprise you to know that spot delivering a car without a loan in place is actually everyday process at car dealerships across the nation as we've mentioned they are doing this to make sure that you don't decide to shop at another dealership that day because these guys couldn't help you at that exact moment if they don't spot you in a car the next dealership will they aren't about to let that happen and while not every spot delivery is a scam this technique is a source of car buyer horror stories all around the country we get emails on this all the time yep going home only to have the dealer tell you have to bring the car back is obviously very upsetting think about it you've probably told your whole neighborhood about your new car and your family stopping over to check it out now the dealer wants it back yes i don't blame you for being a bit ticked off you've been bragging about this car for crying out loud sometimes it's just an unfortunate mistake the finance man made a bad call on a customer with less than perfect credit and they couldn't get the deal done typically an f i manager will do everything they can to get a deal approved before agreeing to a spot delivery after all they don't get paid if the deal isn't done and the finance office is the one who's going to have to make that call when they need to have you come back in legitimate cases like elizabeth just mentioned it's not always known why the lender won't approve the loan it was just a bad call on a wrong customer or the wrong card deal and the bank turns it down however a dealer crosses the line from an honest mistake to a clear scam when the dealer tells you that you are approved for a car loan at a certain interest rate and term when you signed out there wasn't any confusion on your part the dealer made a direct statement to say that you're approved however that's not true and in many cases they absolutely know there is no way you'll qualify for the loan as written it's deliberate deception the dealer is counting on you to fall in love with this vehicle over the course of the next few days and wants you to believe it's yours but make no mistake they knew there was going to be a follow-up call the moment they let you take that vehicle you'll hear stuff like there's a problem with your paperwork and we need you to come back and resign or i'm sorry your financing fell through it could be we need more money down or your interest rate is going up or they say we forgot a couple of forms for you to sign or you need a co-signer if you want to keep this car you might also hear we just can't get you approved for the full amount of the loan whatever they say this is a horrible phone call for any car buyer to receive and unfortunately it is so commonplace that somebody right now is on the line with a dealership somewhere in the country while you're watching this video and they're getting this call from a dealer who's feeding them one or more of these lines it's quite traumatizing the car buyer arrives back at the dealership frustrated and rattled immediately they begin working on your emotional attachment to the vehicle because the truth is they don't want the car back they wanted you back so they could work you over that's right they have you where they want you willing to do anything to keep the car you've been driving this is where they hit you with the highest interest rate a longer term loan maybe they even get you to switch cars or put more cash into the deal the sad part is this is done to people way too often this gets even worse when you add a traded vehicle into the mix then you have something called a snafu or fubar for those of you military guys in this case the trade could already be gone and the slimiest deal is put right in the paperwork that all they have to do is give you the actual cash value of your trade most reputable dealers are pretty good about putting a trade hold designation on a vehicle if the deal is not properly done so we hope you get lucky in the trade nightmare that kevin described doesn't happen to you if this nightmare card deal does happen to you unfortunately we don't have really good news for you car dealers have been doing spot delivery for ages and they've learned how to cover themselves legally they often include a right of rescission agreement with the paperwork it's an actual form that you signed that says if for any reason the dealer cannot get a car loan approved that you must return the car and they stack the deck against you another form that they may use is a bca borrowed car agreement they'll use a bca to supersede the contract if your loan isn't approved we've said this many times and we can't emphasize it any stronger you must read everything no matter how boring it might seem and never sign something you don't understand of course you can try to fight the car dealer if you don't want to return the car but most people who go this route get dragged into a long drawn-out ordeal and possibly a very expensive fight very expensive you can always try filing a complaint with the attorney general's office but unfortunately most people don't win there are a couple of other things to try too if you're convinced that you got a decent deal on the car in other words it was a good buy well try talking to your own bank or credit union this is a step that you should have done first but it's never too late they might be able to help you out if it works out with your own banker you can take the bank check to the dealership and you're done with them you just cut them out of the financing discussion entirely if the dealer is simply trying to get you to resign paperwork through their in-house financing sources and they're either requiring that you put more cash down or your payment is going up refuse to sign it's against the law in most states for a dealer to try to force you to sign at a higher rate or higher payment perhaps the silver lining in all this is that it presents you with a chance to get out of the car deal entirely a deal you probably shouldn't have signed in the first place and then you can get refocused do better homework and start over don't forget if you don't want to resign the paperwork on the car just don't do it unwind the deal and get out of it the big question is how can you avoid the spot delivery scam in the first place well remember how often we tell you that you should talk to your own bank or credit union first if you're financing your car well this is just one of the reasons for that when you need a car loan the best way to avoid the spot delivery scam is to only use a car dealership's financing options as a dead last resort always go with a known banker first know what you qualify before contacting a dealership by having your financing already in place there's zero chance of you being a spot delivery scam victim when your own bank is involved and in the absence of having your own bank involved look the finance manager straight in the eye and ask a very pointed question am i approved through this lender to buy this car right now are you trying to push final approval of this loan off for another day and just doing a spot delivery for me he has no choice but to answer the question with a straight answer anything less is fraud the manager says yes you're approved to buy this card now ask them what bank and lender that you're approved through it should be an immediate answer make them write it down for you on company letterhead and sign it any finance manager that has a hard time giving you the name of the bank or refuses to is simply lying to you time to get up and leave there are cases where accepting a spot delivery works out okay for the car buyer but you must know exactly what's going on up front but that said based on everything we've already shared with you would you ever drive a car off a lot without knowing exactly what you're looking at with the financing that there's no opportunity for gray area left behind do you think any member of the homework guy team would accept a spot delivery even if we knew for sure that everything was okay i'd never do that the answer is no no way no how no dice nada nobody will ever convince me that he needed a car so badly that risking a spot delivery on unknown financial terms made sense if you really needed a set of wheels for the weekend that badly will rent a car for two three days and then come back early the next week seriously just rent the car you can thank me later for all the potential headaches that we just saved you i just want to reinforce never take a spot delivery without a guaranteed approval and finance already in place and if you have to go back for any reason you're making a mistake if you appreciate the video today and we gave you something more to think about well consider giving us that great big thumbs up smash that like button share this video with your your friends and family deserve to get just as lucky as you did today finding this video i also want to encourage you to join us on any of our social media platforms that you find in the description box below also as you see kevin's wearing his is that the best you can do right here we're looking for a few courageous car buyers out there who want to get these sweatshirts or shirts for themselves and go car shopping with it on if you do that and send us the video of you and your homework guy shirt on the car lot will publish your video story and send you a hundred dollars and you get a free shirt out of it and extra cash to spend and all of us get to have a little fun right kevin that's right if you love what we do and want to leave a tip the paypal and cash app links that you see here will be in the description box down below or on our website but no big deal if you can't do a tip just help us get the word out our subscribers are the luckiest car buyers of the planet and you want that to be you right exactly thanks everyone for coming back we'll see you on our next video you guys rock i'm kevin hunter with the amazing elizabeth we're out you [Music] [Music] foreign

Channel: Kevin Hunter The Homework Guy

Views: 244,054

Keywords: Car prices, Car prices set record highs, used car dealerships near me, car loan calculator, Auto sales, Used cars, Car, Cars, Car dealers, Automotive news, Car news, Automotive, Vehicle tax, Vehicle fees by state, Auto Shop, Car parts, Auto market, car dealer finance office, rebates for new cars, car loan scam, dealer rip offs, market watch out for this financing scam, what to do when a dealer lied to you, illegal things car dealers do, what to do if a dealership rips you off

Id: sBxjsMnx82g

Length: 12min 53sec (773 seconds)

Published: Thu May 06 2021