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What's Your Credit Score?

The "Spot Delivery" . . .
a Disaster Waiting to Happen!

The "Spot Delivery" in a car dealership is a tactic many car dealers use to get the customer down the road in their new car as soon as the deal is agreed upon, so the customer doesn't have a chance to change their minds. If given enough time many customers will have second thoughts about a car deal.

The "Spot Delivery" is a bad practice that causes lots of grief for car buyers and car dealers alike. Most often it's done before the car financing is approved, and this is where the trouble begins.

The Finance Manager in the car dealership has to be able to make an educated guess based on a person's credit report and their credit application as to where they can get them financed, and at what rate. The Finance Manager may not be able to actually get the car financing approved by the bank for one to three days depending on what day of the week it is, and on what time of the day it is.

So they make their best guess, print out all the corresponding paperwork and get the customer to sign everything just like the loan is already approved.

In fact, the customer is led to believe that the loan is indeed approved, and their car deal is done. This is done so the customer thinks in his or her mind that they have bought and financed a car. Thinking this, they will not consider backing out of the deal when they come to their senses! In the customer's mind the deal is completed and it's time to move on.

Now if the bank approves the car financing as the Finance Manager structured it everything is fine. The dealership processes the paperwork and the deal is done. What happens however, if the bank won't approve the deal? Believe me, this happens a lot more than you can imagine.

Remember, the customer is under the impression that their car loan has been approved. If the bank won't approve the loan the best case scenario is that the Finance Manager gets the deal approved somewhere else and has to call the customer back in to sign a whole new batch of paperwork. More than likely the interest rate and the payment will be higher; perhaps even the down payment increases.

If the Finance Manager is slick enough he or she can get the customer to go along with the new terms and everybody is happy.

The worst case scenario is that the customer is told the dealership can't get them financed and they have to bring the car back! If the customer refuses the dealership will go and get the car. If the customer traded in a vehicle it may or may not have been sold by the dealership, so that opens up a whole new can of worms.

I get emails all the time from people who go through this stuff. I usually tell them to file a complaint with their state's Attorney General's office and to get a lawyer.

If you ever find yourself buying a car in a car dealership, and they are trying to hustle you down the road in the car ask for written proof that the loan has been officially approved. If they can't or won't provide you with this proof then don't take the car until it is proven to you that the car financing is approved.

If you don't, and succumb to the temptation of taking the vehicle before it's a done deal, it could be your driveway that the tow truck backs into to take your car back.

To avoid this whole mess you should arrange your own financing before you go to buy a car.

  • The following is an excellent source for auto loans for people with an "Excellent" to "Less Then Peerfect" Credit Rating: AutoLoanSolutions

  • Here are several excellent car loan sources for people who have a "Poor" to "Bad" Credit Rating: AutoLoanSoup and MyAutoLoanFinder.com .

The lenders above specialize in helping individuals obtain bad credit auto loans for the purchase of a new or used vehicle. Apply to them and compare. You're under no obligation to accept any of their offers.

Also visit my new website GreatCreditCardDeals.com to apply for a credit card. If managed properly it could eventually improve your credit rating.

If you're not sure what your credit rating is go to CreditReport.com.

This article was written by Tony Iorio of InsiderCarSecrets.com.

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