The terms “yo-yo car sale”, “spot delivery” or “bait and switch” are used interchangeably to describe an unconscionable sales tactic used by many auto dealerships across the nation. In a typical yo-yo car sale some form following typically occurs;
A dealer sells a consumer a vehicle under favorable terms then lets the consumer drive away with the vehicle prior to final approval of the financing arrangements.
After the consumer has had possession of the vehicle for a couple days, the dealer calls the consumer to tell them that there is a problem with their financing.
The consumer drives back to the dealer (in their new car) where the dealer then asks the consumer to sign a new financing agreement, usually with a higher interest rate or with additional insurance products.
If the consumer refuses to sign the new agreement, the dealer takes the keys to the vehicle leaving the consumer embarrassed, humiliated and stranded without transportation.
Breach of Contract- Requiring the consumer to sign a new financing agreement is a breach of the original contract.
Conversion- At the time the dealer allows the consumer to leave with the vehicle, the consumer is in lawful possession of the vehicle. If the dealer takes the car back “repossesses” the vehicle it is essentially stealing the vehicle from the consumer. Click HERE for more information on Illegal Auto Repossessions.
Fraudulent Misrepresentation- The representations that were made in the original contract regarding interest rate, payments, etc, were materially false and intentionally misrepresented.
Consumer Credit Code Violations- If the consumer does not agree to the new terms and the dealer takes the car back there is an Illegal Auto Repossession. In order for the dealer to regain possession of the vehicle it must do so in accordance with the law. Click HERE for more information on Illegal Auto Repossessions.
Truth and Lending Disclosures- Auto dealerships that engage in this type of behavior frequently fail to comply with the truth and lending requirements required by law.
If you believe your rights as a consumer have been violated, you want collection harassment to stop, a debt collection lawsuit has been filed against you, or if you just want to discuss your situation, the Johnson Law Firm is here to help. Click the above link for a free consultation or call us at (515) 224-7090. You have nothing to lose.