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'Spot delivery' is a bad idea when buying a car

Posted: 5:55 PM, Jun 20, 2016
Updated: 2016-06-21 01:50:47Z
Have you heard of "spot delivery" or "spot financing?" It's where you can take a car off a dealer's lot even though financing hasn't been worked out. You just give them a deposit.
 
Michael Regalado put down $1,800 and he was able to drive off with a van while financing details were being worked out. However, he says 10 days later, the dealer called and said he couldn't be financed so they wanted the car back and they were going to keep the deposit.
 
Michael said that deposit should be his. These are the problems some buyers are having with spot financing.
 
It usually happens on a weekend when banks aren't open. Too many times, dealers say they can't get the deal talked about and the interest rates will be much higher than normal or the deposit will be kept.
 
If you can, before shopping for a car, have financing options worked out, and never drive off the lot until all financing details are written into a signed contract.
 
Here's more on spot delivery.
 
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