How A Dealer "Yo-Yo" Scam Works
A typical conditional sale or spot delivery is any deal where the financing is not finalized until after the consumer has already taken the car home from the dealership. The conditional sale becomes a “yo-yo” scam when the consumer is called back into the dealership and told that the deal cannot be made as agreed. At that point, the consumer is told to either return the car or accept financing at more expensive terms.
Car buyers who experience a yo-yo scam receive on average an interest rate that is five percentage points higher than someone with the same risk level who had not experienced a yo-yo scam.