Avoid Dealer Fraud: Resigning the Paperwork

Sometimes it is very common for the dealership to contact the consumer after the sale, and ask him to re-sign the paperwork, or bring the vehicle back because the financing could not be worked out, all after being told that it was a “done deal”.

When a dealership and the buyer agree upon terms, the contract is signed, insurance is purchased, temporary tags are issued or permanent tags are transferred from a trade vehicle, and the vehicle is driven off the lot by the new owner, the sale is complete. There is a common direction in the industry called a “spot delivery” or “yo-yo sale,” where the dealer “spots” the vehicle to the consumer, congratulating the consumer, and then attempts to “pull back” or rewind the deal like a yo-yo after failing to obtain the financing that they assured the consumer was complete at the time of the sale.

When the dealer contacts the buyer about a change in terms or requests that the consumer come up with a larger down payment, or co-signer, and re-sign the contract, the consumer should advise the dealership that they have a done deal, and, in the event that the vehicle is re-possessed by the dealership, which is referred to as the act of conversion, the consumer’s rights have been violated and the consumer should contact our office immediately.