Home » Articles » Uncategorized » Car Dealer Sales Tactic Under Review
There’s a tactic that some car dealers use, dating back decades, known as a bailment agreement. Also called yo-yo or be back, it can jeopardize your purchase without you even realizing it. Essentially, it allows dealers to bring you back to renegotiate terms after you’ve already driven off the lot.
Spot Delivery: The Dealer’s StrategyWhen you buy a car from a dealership, they often employ spot delivery, meaning you can drive off with the car before financing is finalized. To expedite the process, you sign various documents, including a bailment agreement, which states you’ll return the car if financing falls through.
The Financing GameDealers submit your financing application to lenders based on their estimation of your creditworthiness. If they miscalculate or if the lender doesn’t approve the terms as expected, the dealer can leverage the bailment agreement to renegotiate terms, potentially costing you more money.
Avoiding the TrapTo protect yourself, avoid signing a bailment agreement until financing is secured. Insist that the dealership finalize financing before taking the car. This prevents them from using the agreement to their advantage if financing terms change.
A Cautionary TaleA customer’s experience illustrates the risks of spot delivery. By refusing to take the car until financing was finalized, they avoided potential renegotiations. When the dealership miscalculated incentives, they lost leverage and had to honor the original deal.
Asserting Your RightsDon’t hesitate to reject a deal with a bailment agreement. Insist on a level playing field where both parties commit to finalized terms. If the dealership won’t guarantee the deal without recourse, it’s not worth the risk.
The Resurgence of an Old TacticRecent reports indicate a resurgence of bailment agreements in dealership practices. With awareness from sources like Jalopnik and Steve Lato, buyers need to remain vigilant. Don’t be swayed by pressure tactics; there are always other options available.
Stay informed and stay assertive.In the realm of car buying, knowledge is power. By understanding dealership tactics like bailment agreements, buyers can protect themselves from potentially costly renegotiations. Stay informed, assert your rights, and don’t settle for anything less than a fair deal.
Watch our YouTube video: https://youtu.be/XcTmj3KyExo?si=Tr6u5nLyrkvst2BI
Don’t let uncertainty hold you back. If it’s your car, you deserve a title.
Tell us about your vehicle and we'll direct you to a title recovery method that matches your scenario.
"*" indicates required fields
Are you a 501(c)(3) non-profit organization looking for title assistance with donated vehicles? Learn more about how CarTitles can help prepare your transfer paperwork for no cost. Contact [email protected] for more information.