First, I would like to stress that not all cash deliveries should be considered fraud and that not all traders should be considered misleading. Delivering a vehicle to a customer is a daily process at car dealerships across the country. Sometimes a delivery to the spot can be an accident. A CFO makes bad phone calls and signs a customer ignorant of a bad interest rate or a bad appointment. This usually happens with customers with less perfect credit. Some states require merchants to obtain the Bank`s approval within a specified time frame. Recently, New Jersey revised the delivery time to four days. If bank authorization cannot be obtained within this time, the customer must return the vehicle. Once out of this four-day allowance, customers can demand the initial contractual terms – the dealer remains responsible for internal financing. Internal financing, also known as full regression, can open a worm box in relation to different rules. After signing the contract and all the paperwork for the car of your purchase, the dealer will leave the delivery of the car and drive it home totally unaware you have not officially approved under the terms of the car loan that you have agreed and signed. « Cash delivery » is a technique used by car dealers to get you to take charge of the delivery of a vehicle immediately after you have agreed to a car contract.
But be warned: just because you park money and drive out of the dealership with a new vehicle doesn`t mean you can keep driving. No, it`s not a scam, but in bad judgment, it can be a very bad deal. The vast majority of merchants only make a cash delivery if they are very, very confident that it works. Most of the time, that`s what they do! The bank will list the loan as « pending at level B, » which gives the trader the information he needs, at what interest rate he should use. They will continue to sign and send to customers with 5.99% or whatever authorization is pending. If finally the bank wants the approval of the loan, 9 times of 10 it is to the set where it was up and everything is in order. Although there are no laws in many countries that prevent the practice of cash delivery, several conditions apply. For example, it is considered a misleading practice for a customer to sign a contract on terms that you know may not be approved.
This is commonly referred to as the « yo-yo » agreement, and it can lead your car dealership into a world of difficulties – and not least, it could lead to group action. Keep in mind that if you have signed a spot delivery contract, you are not obliged to keep the car. The dealer probably won`t want to do it, so be prepared to hold on to your weapons if you want. Except for all the merchants in my cash delivery state every day. At the time, I worked with many CEOs who didn`t think twice about spot deliveries. They would argue that if they didn`t turn back enough cars, they wouldn`t be aggressive enough! Their motto seemed to be: « If the customer can graze a mirror, we will find out. » Every dealer I`ve been associated with has delivered spot customers. Delivery to the spot can be emotionally devastating because it works. You`re going to make it look like you`ve just bought a car, and two weeks later, the dealer calls you to tell you to bring the car back.
Other states have different rules for cash delivery. In Wisconsin, dealers must provide financing if they provide a vehicle and cannot have the customer licensed through a third-party lender.