KIMMEL & SILVERMAN, ATTORNEYS AT LAW
So you purchased a beautiful new car, signed all the necessary paperwork and drove it right off the lot with a big smile on your face. The dealer got you approved on the "spot". Or so you thought.
A few days or weeks later, the dealer calls and asks you to return to "sign a few more papers". "Mr. Smith", they say, "we couldn't get the car financed and you need to sign a new loan with another bank" or "you need someone to co-sign", or "give us another $1000 and we can do the deal", or "Mr Smith, we need to increase your monthly payment to get this done". The dealer may even have delayed paying off a traded vehicle loan or refused to mail registration papers, all to place additional pressure on the consumer to do as they are instructed or to face dire consequences to their credit.
Sound familiar? It gets worse.
If you refuse, the dealer may threaten to repossess the car, tell you that you have no legal entitlement to keep it or even make you wait for hours at the dealership under some excuse, to wear you down. This situation is most common involving consumers with bad credit, since dealers perceive that such people are vulnerable and easy to take advantage of.
Most consumers assume the dealer is telling the truth and will do whatever the dealer says, resulting in higher payments, additional money being spent over the life of the loan and/or thousands of dollars in increased "hidden" costs. Those who refuse, see their cars repossessed.
What is happening here? It's a scam. Dealer fraud. Unlawful. Illegal. Call it what you will. The industry has given it a name: Spot Delivery, a description which refers to the dealer placing a consumer in a car "on the spot", to get the sale, only to "yo-yo" them back at a later date for additional funds. Played to perfection, a dealer can reap thousands of dollars in unearned fraudulent gain.
What to know about Spot Delivery
If you signed purchase documents and registration applications and if you obtained insurance for the vehicle, had a new license plate put on the car and/or had your old plate transferred, the car belongs to you.
Spot Delivery happens to unsuspecting consumers throughout the United States. It is very popular with dealers in Pennsylvania, New Jersey and Delaware. If you find yourself in this situation, the chances are good that you have legal remedies available to right this wrong.
If you believe you are a victim of a Spot Delivery scam and wish to discuss it with a consumer attorney, call 1-800-LEMON-LAW (1-800-536-6652) or email us. Remember to leave a daytime telephone number where you can be reached. Based on the information you provide us, an attorney will meet with you to discuss your claim. If we do decide to represent you, the process will be cost-free.
Kimmel & Silverman are only able to assess Spot Delivery cases in PA and NJ. For other states, please contact your state Attorney General's office.