Causeway Nissan

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Beware Of Spot Delivery!
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MANAHAWKIN, NEW JERSEY -- It happened to us, It can happen to you!

So you purchased a beautiful new car, signed all the necessary paperwork and drove it right off the lot with a big smile on your face. The dealer got you approved on the "spot". Or so you thought.

A few days or weeks later, the dealer calls and asks you to return to "sign a few more papers". "Mr. Smith", they say, "we couldn't get the car financed and you need to sign a new loan with another bank" or "you need someone to co-sign", or "give us another $1000 and we can do the deal", or "Mr Smith, we need to increase your monthly payment to get this done". The dealer may even have delayed paying off a traded vehicle loan or refused to mail registration papers, all to place additional pressure on the consumer to do as they are instructed or to face dire consequences to their credit.

Sound familiar? It gets worse.

If you refuse, the dealer may threaten to repossess the car, tell you that you have no legal entitlement to keep it or even make you wait for hours at the dealership under some excuse, to wear you down. This situation is most common involving consumers with bad credit, since dealers perceive that such people are vulnerable and easy to take advantage of.

Most consumers assume the dealer is telling the truth and will do whatever the dealer says, resulting in higher payments, additional money being spent over the life of the loan and/or thousands of dollars in increased "hidden" costs. Those who refuse, see their cars repossessed.

What is happening here? It's a Scam. Dealer Fraud. Unlawful. Illegal. Call it what you will. The industry has given it a name: Spot Delivery, a description which refers to the dealer placing a consumer in a car "on the spot", to get the sale, only to "yo-yo" them back at a later date for additional funds. Played to perfection, a dealer can reap thousands of dollars in unearned fraudulent gain.

That is exactly What happened to my husband and Myself. We went car “looking” one evening, and pretty much got “talked into” buying a new car.

We were just looking. We told the sales people that our credit was not good, we were totally upfront and honest with them. Why waste everyone’s time. They proceeded to let us know how many programs there were out there for people like us. We spent 5 hours in the showroom, and after several attempts to just walk out, they came up with a deal for us and put us in a 2009 Nissan Sentra. We left feeling satisfied. Then 14 days later they called us to let us know that they could not find a bank to finance our loan? We didn’t quite understand this because we had signed all the contracts and had notified our other loan company to let them know that our current car loan wasn’t late, that Causeway paid it off. Boy was I wrong. Causeway told us that they were sorry, but we either had to return the car or put more money down, or they could put us in an “older car”.

We were told that they practice this all the time. We said no to all and returned the car, They told us how sorry they were and offered to put a new windshield in our current vehicle, which of course we took, because ours was broken, But told them that would not keep us from trying to protect other people from what we just went through. I am writing the BBB. After extensive searching on the internet to see if this has happened to other people, I found all kinds of scams and things that car dealer ships used to reel in their buyers. I want to warn people to learn things before you go in. Try to get financing before you go into dealerships, don’t sign papers that say “Subject to loan approval” if it is not 100% the day you sign, don’t sign. Its that simple. Please take a minute to visit these sites. Knowledge is power. We were taken, and unfortunately for them, I had 2 people whose cars leases were up and they were looking to “buy”.

Needless to say the salespersons name that I gave to them was quickly withdrawn. Everyone that knows me and my husband, now knows about shady car deals, and through our experience knows how to protect themselves, where to buy and where not to buy.

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User Replies:
skelly39 on 07/23/2009:
Great post. A lot of people don't know that dealerships do this. You probably saved at least a few people from getting caught up in this.
Anonymous on 07/23/2009:
agreed this is a very good post and helpful to other would be car buyers to read thoroughly and make sure they understand exactly what is going on.

but I have to ask a question. on the day you walked out of the dealership with your brand spankin' new car and all the signed documents, did it say anywhere on there *subject to credit approval* or something similar?

those sales ppl are smooth talkers for sure, but I've never heard of a dealership yet that legally got away with a *done* deal and then revoked it later. I'm certain if you take a look at your original paperwork you will find somewhere in there that it was pending approval.
BokiBean on 07/23/2009:
Couldn't have been written any better. I knew nothing of this, thanks for the heads up!
tinydancer89 on 07/23/2009:
thank you for this post. I have not so good credit and probably would have fallen for something like that, I guess the old saying really is true...if something seems too good to be true it probably is. dang.
RammaaJ on 07/23/2009:
Well I still have the documents, and I don't see the subject to credit approval at all.. But it is quite possible it is on there..However, If you simply Google " Spot Delivery" or yo yo scam, you will find myself how popular it is. I actually found out two of my friends had this happen to them and both their cars were sold while they had the "new" car. One got to keep the car because their car was sold, the other friend had to go to court and was awarded kelly blue book value of the car that got sold..which wasn't much. So Buyer beware!
RammaaJ on 07/23/2009:
This is What tells you to due to protect yourself if you have been Spot delivered.

* Remember that if you have signed papers, you own the car, regardless of whether the vehicle has been financed.

* Your credit was good or the dealer would not have delivered the car to you at the price you agreed to pay

* A finance document showing payments, deposit, interest rate and other financial items is a binding contract, giving you specific legal rights.

* You own the car subject to making payments only. The dealer cannot change that once you take possession.

* Keep all copies of your paperwork and anything else associated with the sale (including calendars, photographs, advertisements). If the finance manager asks for your papers at any time for any reason, refuse! Keep these documents in a safe place, not the car.

* If you are called back to the dealership to sign additional papers, either do not go or do so in a different car than the one you bought.

* Have a friend or spouse drive you and witness whatever is being told to you. This will prevent the dealer from taking your car as hostage, an all too common happening.

* If a dispute arises with the dealer over the contract and the dealer demands the car is returned, park it in a garage or remote location until the matter is resolved, to prevent it from being taken against your wishes.

* Put together a complete timeline of everything that happened from the time you thought of purchasing the car until the car was taken away. Try to remember specific names of dealership personnel and any statements that were made to you during conversations with the sales and finance staff.

* Keep track of all monies you had invested into the purchase, including registration, insurance, down payment and trade. Never pay cash and always get a receipt!
madconsumer on 07/23/2009:
great info.

very helpful.
jktshff1 on 07/23/2009:
Anonymous on 07/23/2009:
Very well written!
youtoo0002 on 01/06/2013:
everybody knows causeway is the big rip-off,don't go there....
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