Don’t Fall Victim to Yo-Yo Financing When Buying a New Car

Discovering that you didn’t actually get approved for a new car after the purchase can be a nightmare scenario for many buyers. Unfortunately, some dealerships engage in shady practices like “yo-yo financing” to take advantage of unsuspecting customers. One such customer is fighting back by suing the dealership that pulled this deceitful tactic on him.

What is Yo-Yo Financing?

Yo-yo financing is a deceptive practice where a dealership allows a customer to drive off the lot with a new car before finalizing the financing terms. Later, the customer is informed that the financing fell through, and they must either return the car or agree to less favorable terms, such as higher interest rates or larger down payments.

Protect Yourself from Yo-Yo Financing

To avoid falling victim to yo-yo financing, follow these tips:

Get Pre-Approved for Financing

Before visiting a dealership, secure financing from a trusted lender. This way, you know exactly how much you can afford and won’t be at the mercy of the dealership’s financing offers.

Read the Fine Print

Always carefully review all documents before signing anything. Pay close attention to the financing terms and make sure everything is in writing.

Be Wary of Pressure Tactics

If a dealership is rushing you through the financing process or pressuring you to sign quickly, take a step back. Don’t be afraid to walk away if something doesn’t feel right.

By staying informed and vigilant, you can protect yourself from falling prey to yo-yo financing and ensure a smooth car-buying experience.