Scams are made almost every single day. Whether they are telemarketers attempting to get your credit card information, or door-to-door salesmen attempting to sell you a random toy or product, every single one is looking to take your money for something that is not exactly what it seems.
These scams, throughout the years, have become more devious and nefarious, and have come to infiltrate almost any industry or business that you can think of. One of the larger industries that is currently the target of scams almost out in the open are the auto dealerships and automobile industry. These industries carry large amounts of money, and are prime for the picking for those looking to run a scam and make some money.
A very popular scam that is both knowingly and unknowingly run is the auto dealer yo-yo delivery scam, or the spot delivery scam. This scam, whether intentional or not, preys on your feelings and emotions as a buyer, and can easily suck you into a never ending loop of danger and payments. Here is what to expect, and how to avoid, a spot delivery scam.
What is a spot delivery?
A spot delivery deal is when you, as a consumer and customer, are attempting to purchase a vehicle from a dealership or auto retailer. If you are to attempt to get financial help through a bank, the dealership will usually be able to contact the bank in question and work with them to get you a proper interest rate, payment plan, and length of payment periods.
In cases where the bank may be closed after a certain period, such as in the late evenings, the dealership may make a spot delivery. This is when a dealership, attempting to get a sale on their record, will make an agreement of sale to you without fully consulting the bank, and instead assuming or generalizing the amounts needed for the financial help.
Why is the scam?
A scam, by definition, is a plot or scheme used to either swindle or take money from people or possible targets through unscrupulous means. These can range from simple card tricks, such as magician hustles, to large-scale operations and parties working together to sell misplaced products, or look to increase their profits through misinforming others.
In terms of the spot delivery scam, however, the scam is much more subtle. Using both modern loopholes and current automobile sales stores, these scams are able to swindle you out of your hard-earned money through tricky and often confusing financial schemes.
When it comes to spot deliveries, there are inherent flaws that are not generally readily available for you to know about. In the cases of spot deliveries, although you may assume that the contract and deal is final, it is in fact still open. In these such agreements, the signed paperwork is still open for renegotiation of the financial terms of the financial aid. However, the dealerships will generally not let you know that it is still open.
Instead, these businesses will allow you to drive off with the vehicle, thinking that you are now the proud owner of a new and modern vehicle. Then, a few weeks down the line, they will call you, stating that there has been some issues with your financial statements, and that you need to renegotiate the terms of the agreement. This is where the danger lies.
Why is it so dangerous?
The danger lies where the dealership will attempt to raise the price of the interest rate, as well as how much money you plan to put down. In this way, they hope to have already secured your potential interest as a buyer and take you off the market, all why increasing how much they make from the deal.
What is so dangerous about this is that the scam not only plays on your financial situation, but on your emotions as well. Leaving you to drive the vehicle around for a few weeks ensures that you have shown the vehicle off at least a little bit. If you have shown it to your friends, family, or significant other, it can be quite embarrassing to have to explain to them that the vehicle had to be returned due to a failure of acquiring financial aid from the bank.
In these instances, the scammers know that this will occur, and will always try to push this angle. Preying on emotions is something many scammers are taught to do, as those are the easiest to manipulate into getting a better deal and payout for themselves.
Not always a scam
Now, having learned of a spot delivery scam, it is important that you know that not all dealerships are looking to work this angle. In some cases, it can be just a simple mistake by an agent that was genuinely attempting to get you a good deal and misinterpreted the potential financial outcome. It can also be a simple overlook by the financial manager who made a bad call on your statements.
In these cases, it is important to understand that, no matter what, it is not fun to be caught in these situations no matter if it was a scam or not. As such, it is advised that you speak with an experienced financial advisor to establish a proper way to take care of these recent discoveries to your financial plan on the vehicle.
