Avoid Yo-Yo Sales
(West Memphis, AR) Trying before you buy may seem like a great idea when you’re car shopping, but lots of times, it’s just a disguise for a bad deal.
Consumers have plenty of things to consider when searching for a car.
There’s make, model and, most of all, price.
That’s followed by credit checks, financing, and sometimes confusing paper work.
Things can get even more complicated in what industry insiders call a yo-yo sale.
That’s when dealers allow the customer to take possession of the vehicle before financing is finished and the deal is done.
However, the customer often gets strung along, because there’s back and forth over the financing, and in the end, they wind up with a more expensive purchase.
Lots of folks then feel obligated to sign on the dotted line, even if the terms have changed.
Arkansas’ Attorney General recently issued a consumer alert about this very topic, reminding residents of their rights.
First off, customers do not have to accept the deal if the terms of the agreement have changed.
In fact, Arkansas law gives consumers the right to cancel the sale and return the car.
The seller isn’t allowed to charge for mileage put on the car while in the potential buyer’s possession.
In Tennessee, the buyer must compensate the dealer for usage of the car.
In both states, buyers and sellers are required to sign documents ahead of time, stating the anticipated terms.
While the sale is pending, the dealer isn’t supposed to deposit a down payment or re-sell a trade in.
Of course to be safe, it’s simply best not to take possession of a car before the deal is final, that way you never have to put the brakes on a bad deal!