The quick idea

“Spot delivery” (sometimes called a “yo-yo sale”) is when a dealer lets you take a car home before financing is final—then calls days later saying the deal “fell through” and pressures you to sign a new contract that’s worse for you.

What spot delivery usually looks like

You pick a car, sign paperwork, and drive off. Then you get a call:

• “The bank didn’t approve you.”

• “Your rate changed.”

• “You need a bigger down payment.”

• “Bring the car back today.”

Sometimes the dealer offers a “fix” that costs you more. Other times they demand the car back and threaten repossession—even though the situation may be more complicated than they’re making it sound.

Why it’s risky for consumers

Spot delivery can create confusion about:

• Whether you actually own the vehicle yet

• Whether your trade-in is already sold

• Whether your down payment is refundable

• Whether you’re being pressured into a contract you don’t want

The biggest risk is being rushed. High-pressure tactics can lead to signing a second contract with:

• A higher interest rate

• A longer term

• Added products you didn’t agree to

• Different price or fees

Red flags that should make you slow down

• The dealer won’t give you copies of everything you signed

• You’re told you must return immediately “or else”

• Your trade-in is suddenly “gone” and you’re told you have no choice

• You’re asked to sign a new contract with different numbers than before

• The dealer says your down payment is “non-refundable” without showing you where you agreed to that

• You’re told you can’t bring a lawyer or take time to review

What to do if the dealer calls saying financing fell through

1) Don’t sign anything on the spot

You can say: “I’m willing to discuss this, but I’m not signing anything today. Send me the details in writing.”

2) Ask for the specific reason, in writing

Request:

• The lender’s name

• The date the application was submitted

• The reason for denial or change

• A copy of any adverse action notice (if applicable)

3) Compare the new contract to the original

Look for changes in:

• APR and total finance charge

• Term length

• Amount financed

• Price of the vehicle

• Add-ons (warranty, GAP, service plans)

• Dealer fees and “documentation” fees

4) Protect your trade-in and down payment

Ask:

• Where is my trade-in right now?

• Has it been sold? If yes, to whom?

• What is the exact refund amount and timeline for my down payment?

5) Keep communication calm and documented

Avoid phone-only conversations if you can. Follow up by email or text:

• “Confirming our call: you said the financing was not approved and you want me to sign a new contract at X% APR.”

What to document (this matters)

Create a folder (paper or digital) and save:

• All purchase/lease documents and finance contracts

• Buyer’s order, retail installment contract, and disclosures

• Any add-on product contracts

• Proof of down payment (receipt, bank statement)

• Trade-in paperwork and payoff info

• All texts/emails/voicemails from the dealer

• Photos of the odometer and vehicle condition (in case the dealer claims damage)

A practical checklist before you return to the dealership

• Bring your full document packet

• Bring a friend as a witness if possible

• Take notes of names, times, and what was said

• Ask for all changes in writing

• Do not hand over the keys until you understand your rights and options

• Do not sign a new contract you don’t fully agree with

Common myths

Myth: “If the dealer says the deal is canceled, it’s automatically canceled.”

Not always. The paperwork and state law matter.

Myth: “You have to accept the new terms or you’ll be arrested.”

High-pressure threats are often about leverage, not legal reality.

Myth: “Your down payment is gone.”

That depends on what you signed and what happened with the transaction.

When to talk to a consumer attorney

Consider getting legal advice if:

• The dealer won’t return your down payment

• Your trade-in is missing or sold

• You’re being threatened or harassed

• You suspect the paperwork was changed or misrepresented

• You were pressured into a second contract

If you’re dealing with a spot delivery situation or other dealer fraud concerns, Ginsburg Law Group, PC can review your documents and help you understand your options. Contact us for a free case evaluation. Contact us at intake@ginsburglawgroup.com.