Watch Out For These Seven "Reasons" Given by Dealers for Yo-Yo Scams
Buying a new car vehicle can be complex and difficult. If you are also financing that new vehicle, there are a few things you should keep in mind:
- Secure your financing before you go to the dealer. This will help you avoid the tricks and traps dealers often use to get you to pay more for your car loan.
- If you can't secure financing outside of the dealer, go to at least a few dealerships to compare rates and financing offers.
- If you have chosen a car and dealer, be sure to take your time and read all the paperwork before you sign the dotted line. You have the right to take the documents home and look at them before signing.
- Be sure your contract is final and funded before you drive away with your new car.
Even with those precautions, a dealer may try to pull a "yo-yo scam." These scams happen when the dealer cancels the original deal and later forces the consumer to return and accept a more expensive offer.
Dealers use an array of tactics to lure car buyers back. In most cases, dealers know of financing problems before you leave the lot. Be wary if you hear any of the following "reasons" for why your financing fell through after you leave the dealership: