Complaint / review text:
I recently watched a show on ABC, The Lookout. It described a tactic known as Yo Yo Financing.in this tactic, the dealership looks for people with less than stellar credit and creates a sweet deal for you on terms and financing using your trade-in to help finance the deal. Then they gladly put you in your new vehicle with registration papers and temp tag on the premise that the finance officer will have no problem getting the deal done in the morning with the banks, once you drive off the lot without a confirmed bank deal. They call you back a few days later with bad news, the deal didn't go through and they now need to raise the financing. You don't agree to the new terms and decide to go return the vehicle and get your trade-in back. Here's where the tactic goes into play. They say they have already sold your vehicle so if you still want the credit, you can use it to sign the new deal at a large interest rate increase or you can choose another vehicle to purchase. Either way you do not get your car back so you are kind of stuck.
This is where my circumstance comes into play. We had the salesman call us with a great deal. We gave him our credit info to pass over to the finance officer so we would not waste our time at the dealership. He said all was fine and come get our truck, bringing mine in to verify the trade in price. Everything was going great, we were even going to refer a lot more business their way, friends with stellar credit, because of the courtesy provided and getting our dream vehicle when everyone else gave us a hassle. Once we got to the finance officer's desk, things escalated. We were given a deal of 6.9% interest with our trade-in making payments affordable. He said he would get the deal done in the morning, so we should just enjoy our new vehicle. While we were in his office the salesman took the plates off my own truck and put them on the new truck asking if I wanted help taking the things from my truck and putting them in the new one.
All of the sudden the show, ABC's Lookout, popped in my head. I refused to drive the new car off the lot until we had firm numbers in hand and I was able to talk to the bank offering financing to make sure the deal was done. Thank God I did that. We drove off the lot in my own vehicle that night, calling the next morning to see how it was going. They told me they needed $5000 down, then they said they wanted 6 months pay stubs or bank statements. Then they said the interest rate would be 9.18%, a far cry from 6.9%. I refused the deal, then proceeded to tell them that it sounded like Yo Yo financing. Of course they denied it and I got a text from the salesman, a call from the finance officer and a call from the sales manager, asking why I didn't want the deal.
I expressed again my concerns that it sounded like Yo Yo financing and instead of a sympathetic ear, I got an angry individual telling me to take my business elsewhere. So this is the deal, guys and gals. DO NOT drive off the lot in a new car until you have a confirmed deal from a bank. DO NOT take the finance officer's word on what paperwork you are signing. READ EVERYTHING.in mine, it had a nice clause in it where I could not sue the dealership for anything and that I had to use Arbitration instead. Also the bank has the right to rescind any deal given within 30 days. If you want to review the program, I watched it aired 8/28/13 on ABC at 10 pm. I will not mention names because it does not matter who the salesman was, only that the finance officer and the sales manager knew what they were doing. They run the show so BUYER BEWARE.