Spot Delivery.

In plain English

Spot delivery is when a dealership lets you take a car home on the spot, before the financing is finalized and the lender has formally approved your loan. It feels like the deal is done, but the contract often includes a clause letting the dealer unwind it if the loan falls through. If approval comes back at a worse rate, the dealer may call you back days later to re-sign at a higher payment, a practice sometimes called yo-yo financing. You are not required to accept new, worse terms. You can ask to return the car and get your trade-in and down payment back.

01Why it matters

If the dealer calls you back to redo a spot-delivery deal at a higher rate, you have the right to walk away and recover your trade-in and deposit instead of accepting a worse loan.

02The math, step by step

You sign on a Friday at a quoted rate and drive off in the car. The following Tuesday the dealer says financing fell through and you must re-sign at a higher rate or a bigger down payment. Your first constructive step is to ask, in writing, to cancel the deal and get your trade-in and down payment returned, rather than agreeing under pressure. Rules on spot delivery and yo-yo financing vary by state, so check with your state attorney general or DMV if a dealer pressures you.

03What this is NOT