Avoid this dealership scam | Don't make my mistakes | Yo-yo financing | Spot delivery | 10 Day Rule

Thank you for coming to my TED Talk.
I haven't done a video like this before and this was the first take, so it takes me a couple minutes to "warm-up" and get into the story.
But really, this is a different video that I didn't edit much. It's just me on a little rant about a specific scam happening with dealerships across the country. It might be referred to as yo-yo financing or spot delivery or some other name. The problem is if this is done within 10 business days (hence the 10 Day Rule), it can be legit. Still, it's a scam when done intentionally (when the contract provision is abused). Or when it's like my case and the dealership violated my contract but wouldn't budge until I got a lawyer involved.
Let me know if this has happened to you or anyone you know, how you/they handled it, etc.
I hope this helps at least one person!
#dealershipscam

[@ladymai805]

In the mid-70’s I had my new car for two weeks when the Dealer called me at work and made it sound like I had to come back that night. He would not tell me why. I was working late and was totally exhausted. He wouldn’t let me come in the next day or later that night. I was not happy. I closed shop, picked up my sister and drove back to the dealership. This was like 8:30 in the evening. The very first thing I saw when I stepped out of my car was three other couples leaving who I’d seen on the lot the same day, I purchased my car. What are the chances of seeing the same people who purchased cars the same day, back on the lot the same night? All of them looked extremely upset and were talking among themselves in angry whispers. I didn’t use a trade in when I bought my car. I just put $1,500 down and signed the contracts. At no point was I ever told the terms had not been accepted by the lender. Now get this: These people had a sign on the wall that said, there was no cooling off period. You could NOT change your mind after three days. The sale was final. When we walked into the office, the salesman had the nerve to tell me his manager had changed his mind and I needed to give them another $1,000 or I would have to return the car. I didn’t even think about it. My sister and I screamed “NO!” really loud at the same time. The salesman, was sitting on his desk. He was so startled; he almost fell off. I took the car keys off my ring and threw them on the desk. I told them I wanted my money back RIGHT now and they could keep the car. I also demanded they give me a ride home, or let me use their phone to call for a ride. The guy looked shocked. He said, “But I know you love the car!” I told him I didn’t love it THAT much and repeated my demands three more times before he went to speak to the manager. After a while, he came back a bit cowed and told me my first deposit was fine and everything was okay. I told him, I thought it was, picked up my keys and left. They never bothered me again, but that experience left such a bad taste in my mouth I really didn’t give a damn when eight months later, a drunk driver hit that car in front of my house and turned it into scrap metal. I took my insurance check to a different dealer.

[@BoundlessFlux]

Wow that’s nuts

[@shoveljunk-americanpatriot7603]

Thank you Sir. We are our own best advocates. This type of thing should be taught in school. The system is rigged against the consumer. Get pre approval from your own bank first.

[@SelenaQ22]

OMG! I'm going through this right now! I left the dealership with the car on Thursday evening and the next day the financing office is saying that the lender did not approve the original APR (it was a Labor special) and my ONLY two options was to see if they could backdate the contract and if not, it was going to be raised. At first I thought "am I being punked?" I said there had to be a third option and she said there wasn't. I needed a whole night to process the BS. I called them on Saturday and told her that if they made a mistake is on them, not me and you don't offer a customer two options, when there 3, 4 i.e. drop the price, give concessions. She admitted that her manager told her that those were the two options. I told her that I would no longer with them and they could deal directly with my lawyer. I got two voices messages to call them back, one from her and the other from the manager of the dealership. I didn't respond. I'm waiting to hear back from my lawyer tomorrow...I'm disheartened that I dealership I've purchased two vehicles from before would pull this. You live and learn.

[@BoundlessFlux]

Urgh I’m sorry to hear that.. nice going separating yourself from them (they tend not to take the customer seriously). And that’s awful - not respecting your customer loyalty. Keep me posted (if you want to)

[@SelenaQ22]

@@BoundlessFlux I got a call from the manager and he said the he was notified of the situation and they would keep everything the same and "eat" the difference. I'm still annoyed, however at his phrasing and no apology. If I don't argue and threaten, then what? Thanks for the video and reading the rant. :)

[@BoundlessFlux]

No never and apology because that would be an admission.. glad to hear you stood up for yourself! Hopefully it’ll all be over soon (I’ll definitely be finding a different dealer to service my car when the time comes)

[@MariaRodriguez-nf2ts]

Welp. I’m an idiot. And I’ve signed 3 times and I’m sure a 4th is about to be proposed. I just got notified it didn’t go through again. I’m in WA and am reporting this. Straight up scammy!

[@mrsc1742]

Sad, scummy dealers have turned this into a scam. There are cases where if you buy a car on the weekend or after banking hours (when the correct bank dept is closed) the dealership is just "assuming" you will get approved by said bank at this rate. A few days later they may find out the bank will not approve the original terms. If not able to find financing based on the original terms, most dealerships will just eat the difference, but some will demand you resign or return the car. This all should be done within 10 days. If they call you a few weeks later, it is 100% a scam! Tell them you are on a cross country road trip and will return the car when you return and expect a full refund. For example, if you live in FL, tell them you are currently in CA but will return the car once you get back. Most will just eat the costs before accepting a vehicle with a few extra thousand miles added with no profit.

[@KeithBlade]

Good video.. Almost every car deal I've had has had some element of a scam. Most of the time I've been lucky to see it first. But my brother got taken by the scam in this video. Bottomline is ask many questions and stick to bigger name dealers, the yo-yo stuff happens more at the tiny 2nd rate dealers.

[@BoundlessFlux]

Thank you - and sorry to hear that about your brother. This was a proper Jeep dealership (the whole family you know CJDR) if that's what you mean by the bigger name ones (as opposed to the non-manufacture specific), but I could see how it would happen more with the smaller ones.

[@yeah_right88]

Always have your own financing before walking into a dealer. It's a conflict of interest. I've never even heard of this problem, because I use my own lenders or pay cash.

[@Ransu028]

Dealing with this right now, asking me to come in before 10 days and sign a new contract.. out of principle I’ll just give the car back and go elsewhere. Slimy out here in the market

[@BoundlessFlux]

Dang.. how annoying. Hope you find something even better elsewhere!

[@laurentinquinn1668]

Same thing happened to me. Salesman was assuring me that bank approved me and to take car home and not worry. Of course I would trust him... I parked it and waited till I get a confirmation from the bank that the purchase was funded :)

[@blakmomba7923]

I burst out laughing when he started adjusting his body as he says ok story time. 😂😂😂lol

[@TheSpectre2300]

Can a deal do a spot delivery scam on a leased vehicle?

[@blakmomba7923]

Let’s hear this story. I popped some pop corn just to hear it so it better be good 😂😂😂😂

[@creeknation6959]

I know this is video was made a while back. Don’t know what to do. I’ve had the car for two weeks. They called me told me to come in and re-sign the contract. I do not want to resign. The vehicle is an EV with bad batteries turns out it’s gonna cost $17-$20,000 to replace the batteries I’ve only had it for two weeks, drove less than 300 miles thing is they already sold my trade-in what would be my options?

[@BoundlessFlux]

This sounds more complicated than the 10-day rule scam I went through. Sounds more like they sold you a lemon… in which case there are plenty of lemon law lawyers that would be able to help you. I’d look some up that practice in your state (ideally city) and give them a call. Sometimes they give free advice on your situation before you have to hire anyone formally.

[@shawnpitchford777]

So was this like a national dealer like jeep or Chevy? Or a dealer that has a bunch of different cars and stuff?

[@BoundlessFlux]

This happened to me at an official CJDR dealer but I don’t see why others couldn’t pull off the scam so I’d be wary in any case

[@HighGrit]

Question, Is it 10 business days or calander days?

[@BoundlessFlux]

business days

[@johnryall815]

Depends on the contract and/or state law. Colorado is ten calendar days.

[@xstaycrunchy]

Currently going through the same situation. It been 27 days since I singed the contract. I just received a letter let me know that I have to return the vehicle because the bank they do business with will not approve my loan. I have yet to receive any information on how to make a payment. I called them and they said they want me to sing a new contract. I just emailed them stating that the contract specifically says they have 10 days to notify me. The letter was sent 2 days ago however they marked the paper with the date of my purchase. I don’t know if this fraud on their part.

[@BoundlessFlux]

The date that matters is the date you signed. That’s the contract. As for notifying you, they can’t backdate a letter - that’s wild. Without proof of reasonable attempt to contact you within those 10 business days, they’re at fault (from the little I know here assuming the typical scam I talked about). So they have to honor the terms you signed regardless of the bank. Hopefully you can make a good enough case that they back off and you don’t actually need a layer to threaten them (why incur that expense). Good luck!

[@paperrouteben1668]

they won’t give back my down payment is there anything i should do ?

[@BoundlessFlux]

That’s not right.. if they’re demanding the car back, then they need to pay you back in full. You can challenge that by stating where in the contract does it say they can keep your money (I assume that’s the case). What I did was also consult a lawyer over the phone. If you find someone local who deals with consumer issues (maybe even specifically auto) they typically will do a free consult over the phone to tell you if there’s a case or not.

[@staygrinding3817]

Did this affect your credit score at all?

[@23AndersonGray]

They won't get the car back until they issue a full refund. It's actually illegal in most states for them to do that ​@@BoundlessFlux

[@dmoneydance]

Your biggest mistake was not going to a bank (preferably your bank) & getting a check before shopping for a vehicle. It’s cuts out all the Dealer mess. 🙅‍♀️

[@dmoneydance]

Oh & don’t tell them you have a check until after you are rock solid on negotiating the price.

[@acatl33]

Fml I feel like this is about to happen to me as we speak 😤

[@BoundlessFlux]

Dang… how did it play out?

[@acatl33]

@@BoundlessFlux the 10 day period is this Friday. My trade in hasn’t been paid yet, waiting to see if I get a call or letter by mail for now

[@BoundlessFlux]

I see. Hopefully it’s all fine (or they miss their window) 🤞

[@staygrinding3817]

Damn I just fell for this. They charged me $600 more than ny initial payment. I'm in california and not sure if I can sue

[@BoundlessFlux]

Dang sorry to hear that. As long as they did it within 10 days then they have the right unfortunately. All you can prob do is give it back and they have to return everything you paid (down payment, first month, etc) and maybe that’s a negotiation if they don’t want you to return it. That’s assuming you can just walk away (I wasn’t in a position to do so so it would have been risky)