Call Kurtis When Car Sales Go Bad Yo Yo Financing Apr 19 2012

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So you buy a car you drive it off a lot you think it’s a done deal yeah but a first time car buyer called curtis when the dealership called more than a month later saying they couldn’t find him alone okay if your loan falls through apparently california law allows the dealership to ask you to fork over the entire price of the car curtis tells us but there are ways

To keep this from happening it’s pretty good on gas 21 year old derrick nasca is a proud first time car buyer well he’s actually a repeat first time car buyer a few months ago he got this 2010 chevy malibu we thought he’d bought the car his grandma pat nasco helped him negotiate the deal but more than a month later the dealership had bad news he called and said oh

What having problems kind of trying to find you somebody to hold the loan derrick was faced with three options come up with a bigger down payment find a cosigner or bring back the car there was nothing said to us at all about that this was a temporary or that this might not go through it’s cold spot delivery you take the car home right away even though the dealer

Has not finalized your loan it can lead to a predatory practice called yo-yo financing in which the dealership leads you to believe the deal is done but they reel you back in later saying financing fell through asking you to sign a more expensive loan it’s common enough in the united states that the federal trade commission has discussed it in a recent conference

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Carol luck nicob says yo-yo financing is often aimed at people with little or tarnished credit but anyone could prevent it from happening to them you can wait make your down payment let the paper will go through call back on monday see if the loan went through don’t take possession of the car until you know that the financing is in place or you could

Get pre-approved from your bank ahead of buying a car dereck refused to put more money down or get a cosigner so he returned his malibu and got this car from another dealership happy ending and it’s funny because the payments are less than what they were on the other car alright so if this happens to you ask for proof from the lender your loan was denied if the

Dealer turns that over you have to return the car or sign a new deal now if you have to give the car back to man your down payment back but the dealer they can’t charge you a restocking fee or they could also charge you for excessive wear why would a dealer allow somebody to drive off with a car without securing a loan first well a lot of these deals happen on

Nights and weekends when banks are closed they don’t want to wait until banks open back up so they don’t want to lose a sale so they’re gonna go ahead and push that deal through but a lot of consumer groups were against this and they are asking the ftc to ban the practice of yo-yo financing okay thank you sir all right if you have a consumer problem you can’t

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Call Kurtis When Car Sales Go Bad Yo Yo Financing Apr 19 2012 By CBS Sacramento