Dealerships know that the real profits are in the financing, and sometimes they get so greedy as to act illegally to get even more than they are due out of your pocket. Yo-Yo Financing is a tactic that dealers use with customers that don’t qualify for the financing they were originally promised. Here’s how it works…
You go into the dealership and purchase a new car from the lot. The dealer requires you pay a certain down payment amount, they tell you how much the monthly payments will be, and you drive home in your new or used car. There are no issues until the dealer calls days or even weeks later to let you know that they were unable to get you the financing they originally promised, and need you to come back to sign another contract.
Once you arrive, the dealer explains that you will need to sign a new contract and agree to new terms. This can increase your monthly payments significantly and even require you to put more money down. While there could be issues where you are now being overcharged due to “confusion,” many dealers end up double charging for the time between the two contracts from backdating.
Are You Stuck in the New Contract?
Most people want to know if they are stuck in the new contract. We are able to answer this question for you, but will need to review your documents before saying anything for sure. Details in the contracts will determine what rights and options you have with the vehicle moving forward. Our firm offers free legal consultation and document review for auto fraud cases, and would be able to review yours as well.
If your goal is to get out of the new contract, we can help you work towards that goal. Some clients call us and are only concerned with the financing, and tell us that the rest of the car is great! In that case, we can work with to make sure that you aren’t paying twice for yo-yo financing.
Call Us And Ask Questions
You probably have a lot of questions about the Yo-Yo financing laws that dealerships must abide by, and we want to answer those for you. Call our firm at 818-254-8413 to speak with an expert auto fraud attorney about your situation. We look forward to speaking with you, learning about your case, and taking the steps needed to get you satisfaction.