Kasey and Green Light Auto Credit did a fantastic job in helping us a great car!
When a dealer approves a customer for a car loan and they drive it off the lot, you might think the deal is done. However, if the dealer contacts the customer days later and says they don’t meet the loan requirements, that’s known as yo-yo financing. The buyer will then be forced to pay a higher interest rate in order to keep the car. Find out more about yo-yo financing and how you can avoid getting scammed.
If you’re in the market for a new or used car, you’ll want to take these steps to make sure you don’t end up with yo-yo financing:
If you’ve recently purchased a car and you get a call from the dealer saying there’s been an issue with your financing, it’s time to put your guard up. You’ll want to re-read all of the forms the dealer gave to you to see if you signed a form saying the sale was conditional. If you did sign such a form, you can return the car and move on.
Let’s say, though, that you love your new car and aren’t ready to give it up. Tell the dealership you want to see the lender’s letter that states that your financing was denied. If they can’t show it to you, there’s a good chance they’re trying to rope you into a yo-yo scam. It’s a good idea to talk to an attorney who’s familiar with auto fraud, and handle the sitaution the legal way without damaging your credit.
At Green Light Auto Credit, we work with a wide variety of lenders to get you the best interest rate possible, and we don’t stoop to the kind of underhanded loan tactics that yo-yo financing providers do. Contact us to learn how you can avoid getting scammed on auto loans.