What “Spot delivery” means
Spot delivery means you sign, drive away the same day, and the dealer finishes placing the loan afterward. Most of the time the loan funds and nothing changes. The problem is the contract language: many dealer contracts let the seller cancel if it can’t assign the loan to a lender on the agreed terms within a set number of days.
When that happens, buyers get a call to “come re-sign,” often at a higher rate, with a bigger down payment, or with products added. That is yo-yo financing. Rules on it vary by state.
How it shows up at the dealership
Clues you’re in a conditional deal: a “bailment,” “conditional delivery” or “seller’s right to cancel” clause, or an approval described as “pending.” If your trade-in is involved, the dealer may already have sold it.
Worked example · illustrative numbers, not a quote
A yo-yo call, by the numbers
| Signed: $30,000 at 6.9% for 72 months | $510/mo |
| Call 9 days later: “new terms” at 11.9% | $585/mo |
| Cost of accepting | about $5,390 more interest |
Illustrative. You may have the option to return the car and get your down payment and trade back, depending on your contract and state law.
What to do
- Ask before signing: “Is my financing final and funded?” Get a yes in writing if possible.
- If called back, don’t sign anything new on the spot; ask for the original contract and the cancellation terms in writing.
- Contact your state attorney general or a consumer attorney if the dealer won’t return your down payment or trade.
What to say
“I signed a contract at 6.9%. Please put in writing why it can’t be funded and what my options are under the contract, including returning the car and getting my down payment and trade back.”
Also called: yo-yo financing, conditional delivery.