Yo Yo Car Sales

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The “Yo-yo Car Sale” is a scam used by some car dealers. A basic description of how it works is described below. If you have had a similar experience or in any way identify with it, you should contact an attorney immediately to see what legal options are open to you.

The “Yo-yo Car Sale”

Let’s say you recently bought a car. You purchased the car on credit and the sales person assured you that all of your financing was in order. You have signed copies of the sales contract and application for title, and even a temporary license plate. The vehicle is probably sitting in your driveway right now.

A few days or weeks later, a sales person from the dealership contacts you. You are told that what you thought was a done deal, isn’t. You are told that the financing fell through. Or you may be told that you agreed to a condition in the sale, and that condition fell through. You are also told that your options are to return the vehicle, get a co-signer for the loan, or sign all new paperwork.

You are instructed by the sales person to return to the dealership. You may be told to bring along someone who can co-sign a loan for you or the sales person may pick a person from your list of references to co-sign the loan. The sales person may even tell you that if you don’t return to the dealership with the car, he will have it repossessed or have you arrested. Often times the dealership will go through with these threats if you continue to refuse to return the vehicle. As soon as you get off the phone with the dealership, you should immediately contact an attorney, and seek legal help.

But what happens if you do return to the dealership? Odds are that the dealership will offer you a new sale or credit terms. These new terms won’t benefit you at all, and will be better for the dealer. The dealer may even repeat this process with you, until he has made as much money as he possibly can off of you.  You may begin to feel like a yo-yo going back and forth. Often times, these new terms and conditions allow the dealer to keep the entire down payment or trade-in.

You may want to simply return the vehicle to the dealer and demand what money you have paid be returned, and refuse to accept any modifications of the original agreement. Tell the dealer you will sue to get back your money if it is not refunded.

How to Handle the “Yo-yo Car Sale”

As already stated, please contact an attorney if you think you may have been a victim of the “Yo-yo Car Sale.” In addition to that, you should also follow these three steps:

Step I:
Go to the car and take out everything you have put in it! This means wallets, Cds, laptops, and other personal belongings. This precaution is necessary because the dealer may attempt to repossess the vehicle. You don’t want your personal belongings to be lost forever.

Step II:
Make sure you have all the paperwork from the purchase of the car in your personal possession. After buying the car you probably took all the sale paperwork you got from the dealership and put it in the glove box. Empty the glove box of every sticker, form, manual and piece of paper. Remove the temporary license plate even. This is usually green and in the back window of the car. Put all of this in an envelope for your attorney and put it somewhere safe. Do not leave it in the car!

If the vehicle is repossessed, the dealer may find and destroy the paperwork. You and your attorney need this paperwork as evidence of the original sale.

Step III:
Make sure you document what the dealer says to you and any threats that were made. The dealer may deny the threats he made to you. Your attorney should be able to explain how to best go about this.

What Legal Remedies are Available to Me?

First of all, remember how important it is to contact an attorney if you think you are a victim of this scam. Numerous state and federal laws are in place to protect you. What remedies are available depends on what legal action needs to be taken. Your attorney will be able to advise you on what needs to be done to ensure you don’t remain a victim of this scam.