Confirm financing before relying on the deal

Spot Delivery and Yo-Yo Financing

Spot delivery occurs when a buyer takes the vehicle before financing is final. Problems arise when the buyer is later told to accept worse terms, add money or return the vehicle.

Source review: July 26, 2026Transaction safety
Key answer

Recognize conditional delivery, changing loan terms and requests to return to the dealership after taking the car home.

Ask whether financing is final

Before leaving, ask which lender approved the loan and whether all conditions are satisfied. Read any conditional-delivery or bailment agreement.

Keep every signed document

Take the buyer’s order, retail installment contract, credit application, temporary registration and conditional-delivery terms. Do not leave the only copy with the dealer.

Do not rely on “you are approved” verbally

The contract should show the creditor and terms. If the dealer says approval is pending, understand what happens to the vehicle, down payment and trade if financing fails.

Respond carefully to a callback

Ask for the reason in writing and a copy of the lender decision. Do not sign a replacement contract without comparing APR, term, payment, amount financed and total cost.

Preserve the trade and deposit position

A traded vehicle may already be at risk of resale, and down-payment funds may be held. Document all promises and seek state-specific help when the dealer changes terms after delivery.

Worked deal example

The callback changes the real deal

A buyer signs at 7.2% and drives home. Three days later the dealer says financing failed and offers 11.9% with another $2,000 down. The buyer compares the signed documents, asks for the lender decision in writing and does not treat the new terms as a minor paperwork correction.

Questions to ask before agreeing

  1. Which lender gave final approval?
  2. Is delivery expressly conditional?
  3. What happens to my trade and down payment if funding fails?
  4. Why are the replacement terms different?
  5. Do I have copies of every original document?
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Frequently asked questions

Is every spot delivery a scam?

No. Conditional delivery can be lawful, but the risk is material when financing status and consequences are unclear or terms are changed deceptively.

Do I have to sign a worse contract?

Do not assume so. Review the signed documents and obtain state-specific legal or regulator guidance.

Who can I contact?

Depending on the issue, the lender, state dealer regulator, attorney general, FTC or CFPB complaint system may be relevant.

Official sources and further reading

These sources support the guide’s definitions and consumer-protection context. State-specific rules and individual contracts can change the result.