The “Spot Delivery” in a car dealership is a tactic many car dealers use to get the customer down the road in their new car as soon as the deal is agreed upon, so the customer doesn’t have a chance to change their minds.
With time many customers will have second thoughts about a car deal, or have “Buyer’s Remorse,” and want to cancel the whole deal. This is a problem most car dealers have to contend with on a regular basis.
The “Spot Delivery” is a bad practice that causes lots of grief for car buyers and dealers alike. Most often it’s done before the financing is approved and this is where the trouble starts.
The Finance Manager in the car dealership has to be able to make an educated guess based on a person’s credit report and their credit application as to where he or she can get the customer financed, and at what rate, term etc. He or she may not be able to actually get the deal officially approved by the bank for one to three days.
So they make their best guess, print out all the corresponding paperwork and get the customer to sign everything just like the loan is approved. In fact, the customer is led to believe that the loan is indeed approved, and their deal is done. This is done so the customer thinks in his or her mind that they have bought and financed a car. Thinking this they will not so easily consider backing out of the car deal once they come to their senses!
Now, if the bank approves the deal as the Finance Manager structured it everything is fine. The dealership processes the paperwork and the deal is done. What happens however, if the bank won’t approve the deal . . . and this happens very often?
Remember, the customer is under the impression that their loan has been approved. If the bank won’t approve the loan the best case scenario is that the Finance Manager gets the deal approved somewhere else, and has to call the customer back in to sign a whole new batch of paperwork. Most likely the interest rate and the payment will be higher, and perhaps even the down payment goes up!
If the Finance Manager is slick enough, he or she can get the customer to go along with the new terms, sign the new loan contract and everybody is happy.
The worst case scenario is that the customer is told the dealership can’t get them financed at all, and they have to bring the car back! If the customer refuses, then the dealership will go and get the car. If the customer traded a vehicle it may or may not have been sold by the dealership, so this opens up a whole new can of worms!
If you ever find yourself buying a car in a dealership, and they are trying to hustle you down the road in the car ask for written proof that the loan has been officially approved. If they can’t or won’t provide you with this proof then don’t take the car until it is proven to you that the financing is officially approved.
If you don’t do this, and succumb to the temptation of taking the vehicle before it’s a done deal it could be your driveway that the tow truck backs into to take your car back.
To avoid this whole mess you should arrange your own financing before you ever go to buy a car. Go to your local bank, credit union or apply online in advance of buying a car. You will save yourself a lot of trouble, and you will have more control over the whole car buying process.
Tony Iorio is the webmaster and publisher of InsiderCarSecrets.com, a web site that helps people save money, time and aggravation when buying a car. All of the information, tips and secrets found on this web site have been gleaned from his 37 years of successful, experience working in car dealerships as a Service Manager, a Body Shop Manager, a Car Salesman, a Finance Manager and as a Sales Manager. He has also owned and successfully operated an independent body shop and a used car dealership. For more tips on financing your car and avoiding the “Spot Delivery” visit Car Financing Tips.