Yo-yo transactions, also referred to as spot-delivery, take back, MacArthur or gimme-back transactions are one of the most widespread automobile dealer abuses today, applying to new and used car sales and automotive leases. In these cases, consumers believe that a vehicle’s installment sale or lease is final, and the dealer gives the consumer possession of the car “on the spot.” The dealer later demands the consumer to return the car because of financing issues. Upon returning to the car dealership, the salesperson claims that the consumer did not qualify for financing, though they can still process the deal at a higher interest rate or with a larger down payment.
Dealers insist that the consumer is bound by an agreement, although they feel free to back out of the deal if the consumer does not agree to the unfavorable terms. If the consumer does not return the vehicle or agree to rewrite the transaction on less favorable terms, the dealer repossesses the vehicle and, in some extreme cases, has the consumer arrested if the consumer does not return the car.
If you have been scammed by a dealer, it is recommended that you call the bank that allegedly turned down your financing to verify if that is the case. More importantly, the paperwork must be reviewed to determine whether you bought the car or not. If you did buy the car, the dealer must honor the terms on the legally binding contract signed by the consumer. If the consumer did not buy the car, they can return the vehicle for a refund of the deposit and a return of any trade-in.
Buying a car is typically a great experience, though there are dealerships that will take advantage of hopeful consumers. If you suspect that you entered a yo-yo deal, you may be entitled to collect legal fees and punitive damages. Contact our auto fraud lawyers at Darfoor Law Firm at 1-833-DARFOOR for a free case review.
For more information on Yo-Yo transactions, or if you have any comments or suggestions visit our twitter page. We look forward to hearing from you.