What to do when a car dealer says your financing fell through Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial decisions by providing you with interactive tools and financial calculators as well as publishing quality and impartial content. We also allow you to conduct your own research and compare data for free and help you make financial decisions with confidence. Bankrate has partnerships with issuers including, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The deals that are displayed on this site are from companies that compensate us. This compensation could affect how and when products are featured on this site, including, for example, the order in which they may appear within the listing categories and other categories, unless prohibited by law. Our mortgage, home equity and other home loan products. But this compensation does not influence the content we publish or the reviews that appear on this website. We do not cover the universe of companies or financial offers that may be accessible to you. MoMo Productions/Getty Images

4 min read Published August 11, 2022

Sarah Sharkey Written Sarah Sharkey Written by Contributing Writer Sarah Sharkey is a contributing writer for Bankrate. Sarah writes on a range of topics, including banking, savings tips, homebuying, homeownership and personal financial matters. Written by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate from late 2021. They are committed to helping readers gain confidence to control their finances by providing clear, well-researched information that breaks down otherwise complicated topics into bite-sized pieces. The Bankrate promise

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There are money-related questions. Bankrate has the answers. Our experts have been helping you manage your money for more than four years. We are constantly striving to provide consumers with the expert guidance and the tools necessary to make it through life’s financial journey. Bankrate adheres to a strict code of conduct standard of conduct, so you can rest assured that our information is trustworthy and precise. Our award-winning editors and reporters provide honest and trustworthy content that will help you make the best financial decisions. The content we create by our editorial team is factual, objective and is not influenced by our advertisers. We’re open about how we are able to bring quality information, competitive rates and useful tools for you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for placement of sponsored products and, services, or through you clicking specific links on our website. Therefore, this compensation may affect the way, location and in what order products appear within listing categories, except where prohibited by law for our mortgage home equity, mortgage and other products for home loans. Other factors, like our own website rules and whether the product is available in your region or within your own personal credit score can also impact the way and place products are listed on this site. Although we try to offer a wide range offers, Bankrate does not include specific information on each credit or financial item or product. After having a relationship with a dealer you drive off with your brand-new or used car with confidence. Although the financing hasn’t been approved quite yet, spot delivery permits you to get your new vehicle off the lot in a matter of minutes. But a few days later you receive a message that nobody wants to get: the financing isn’t working. If you are in this situation the next step must be to determine if there’s a flaw in the application that caused the denial or if you’ve become a victim to a scam involving delivery on the spot. Are you able to be denied an auto loan following preapproval? While the probability of it happening for an actual reason is extremely minimal, it is possible to be denied drive off the lot. There are a few common reasons for this the job was terminated. The lender will likely check your employment when processing your application for financing. If they’re unable confirm your employment because you were terminated, laid off or quit, your application could be denied. Your income went down. It could be due to an employment change or a reduction in working hours from your employer or a reduction in hours by your employer, the lender could decide that you can not afford the car payment each month and refuse your auto loan. Your application contains unverifiable information. Are there typos on your application? Did you get another job or relocate after being preapproved for an auto loan? This is a reason to the lender to deny your loan in the event that you fail to inform them of your modifications. However, there are occasions where your financing could fall through because of a spot delivery fraud. In this case you’ll have to take swift action to correct the issue and avoid falling again a victim. Be aware of signs that indicate frauds involving spot delivery. When a dealer allows a spot delivery, this means you can leave with your vehicle on the same day you sign the documents. However, the actual financing of your loan may not be complete in the foreseeable future. This is particularly relevant if you get to an end of the day when banks are closed. See how the dealer reacts If the dealer is threatening to declare the vehicle stolen or repossess the vehicle immediately, then you are likely dealing with a scam. It is crucial to note the fact that there is no guarantee all deliveries are scams. Mistakes can happen. In fact, a legitimate dealer could permit delivery at the spot but an error in your calculator on your loan application which leads to the deal falling through. If a dealer can reasonably believe that a buyer won’t be approved and asks the buyer to sign for the vehicle at a greater interest rate or else, something is likely going on. Examine the original documents. Look through the purchase documents. If there was a ‘Seller’s Right to Cancel’ or ‘Limited Right to Cancel’ form, you’re probably to have been a victim of a scam. These documents leave room for the seller to proceed with the bait and switch method. This means you’ll have for a higher amount than what was previously agreed upon price of the car. Fortunately, such documents are illegal in most states. However, if you discover one in the mountain of paperwork you originally signed, it’s likely that you’re dealing with an untrustworthy dealer. What to do if you’ve been victimized The reality is that there are scammers in nearly every industry. Car dealerships aren’t an exception. If you’ve been the victim of a scam involving delivery on the spot make sure you have all those original papers. Next, reach out to an office at . At that point, officials will be able to provide you with options on a state-specific basis. In certain instances, investigators may ask for an outline of the events that led to your car purchase. It is a good idea to immediately write down every detail of the procedure. In the event that you don’t, it will be difficult to piece the information later. How can you protect yourself from future harm if you find yourself the victim of a spot delivery scam There are ways to prevent this from happening again to avoid it again in the near future. Be cautious about advertisements from dealerships for cars. Read the fine print to learn more about rebates of savings that the dealership is advertising. Many come with conditions that may make them inaccessible to you. Research dealerships to work with A quick search on the internet can assist you in finding a dealership within your region that has the highest ratings from customers. Avoid dealerships with a number of negative reviews or have a reputations for having scams. If something about a dealer makes you uncomfortable, find an alternative to deal with. Arrange financing directly through a lender Instead of relying on a dealer for financing via a bank, credit union, or online lender. You can before heading to the car dealership make sure you get the best price on financing. Be patient when buying an automobile isn’t easy do not rush through the paperwork or sign the contract without reading the fine print to ensure you get the deal done. Don’t take a spot delivery You may not be thrilled by the thought of having to wait around until the loan is approved, processed and funded for you to take off in your brand new car. But, avoiding spots will eliminate the possibility of being a victim of a scam involving a delivery spot. The bottom line: A spot delivery scam could be financially and emotionally taxing. If you’re looking to purchase car, the best option is to get credit directly through the lender. Do not rely in dealer finance. Not only is dealer financing generally more expensive however, you’ll also be exposed to the risk of being a victim of a spot delivery scam. So, if you are seeking a reliable lender to partner with, check out . Find out more about the company.


Written by Contributing Writer Sarah Sharkey is a contributing writer for Bankrate. Sarah writes about a range of subjects, including banking, savings tips homeownership, homebuying and personal financial matters. Editor: Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are passionate about helping their readers gain the confidence to take control of their finances through giving clear, well-studied facts that break down complicated topics into digestible pieces.

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