“Cash delivery” is a technique used by car dealers to get you to take charge of the delivery of a vehicle immediately after you have agreed to a car contract. But be warned: just because you park money and drive out of the dealership with a new vehicle doesn`t mean you can keep driving. Vehicle dealers will sometimes file pink or “creative” credit applications to convince a lender to accept financing for a vehicle. This creativity can take many forms: an improvement in the consumer`s income, a subtle increase in the length of employment of the consumer, an exaggeration of the lifespan of the consumer at his current residential address, etc. Once the lender verifies the information contained in the return with the interest rate, duration and other conditions for the proposed financing, it is not uncommon for the lender to be suspicious or skeptical and then reject the application. This means that the trader must find another set of figures and information that can finance the agreement…….. the distributor does not want to lose the potential sale. If any of the information on the temperate sales contract needs to be changed, the trader must contact the consumer and rewrite the agreement… but how the trader explains the need to call the consumer if the trader told the consumer that the agreement was final…. uh-oh…. Often, people who have been put under pressure by these cash delivery systems are the most vulnerable, those with struggling loans or low incomes, who do not have many alternatives. At the end of the day, take your time and do your homework. Think about it and don`t let the saleswoman immerse you in anything.
Many consumers leave a trader think and are told by merchant employees that the transaction is approved and it is all over. But too often, this is not the case. Across the country, too many consumers are tolerated and taxed with understanding by car dealers who conditionally deliver a vehicle but do not advise the consumer. Conditional delivery (also known as “cash delivery” or “yo-yo sale”) is made when the finality of the purchase or lease transaction has not yet been concluded. This “new authorization” usually takes the form of the proposed financing terms, which are accepted by the potential lender.