According to several news sources, some car buyers with poor credit can fall prey to a scam called yo-yo financing.

According to recent news articles, the car salesman typically involved with this type of scam sells the car to the buyer when credit approval from the finance company can’t be obtained. This usually takes place during the evening and allows the buyer to take the car home before the credit agency approves the deal.

When the agency finally responds with an objection, the dealership hits the buyer with a new loan at a much higher interest rate or threatens to force the driver to return the vehicle, which leads the car dealer to charge them a high rental fee or a wear and tear fee on the vehicle they thought they were purchasing.

Experts urge car owners to be aware of such scams. To learn more and be prepared for this type of situation, we urge you to read the full article by clicking here:

Don’t Fall Prey to Spot Delivery Scams and Yo-Yo Financing