What You Need to Know About Yo-Yo Car Sales

You’ve probably purchased a car from a dealership, but chances are you haven’t heard the phrase “yo-yo car sales.” What exactly does it mean? Yo-yo car sales are a deceptive sales tactic used by dealerships in which customers are tricked into signing financing for a loan that is by no means guaranteed and could actually fall through. In this post, we’ll unpack what yo-yo car sales are and how they work so you can protect yourself next time you’re in the market to buy a vehicle.

How Yo-Yo Car Sales Work

The yo-yo car sales trick works like this: When you sign the agreement for financing there is fine print that says the dealer has the right to take back the vehicle if the financing changes and you don’t agree to the new terms. After some time has passed, the customer is contacted and told that their loan was not approved and that they must sign a new contract with higher interest rates and/or monthly payments to maintain possession of their vehicle. This is where things start to get shady; if the customer refuses to sign the new contract, they will be threatened with repossession of their vehicle or other legal action.

In some instances, the dealer has already sold the customer’s trade-in vehicle so you can’t even get your old car back!

This practice is very unethical, but unfortunately, it’s happening at many dealerships across the country. A surefire way to protect yourself from being taken advantage of by yo-yo car sales tactics is to pre-arrange financing with RMLEFCU.

How RMLEFCU Can Help You Avoid This Deceptive Sales Tactic

Protect yourself from this nasty sales trick by getting pre-approved with RMLEFCU. Getting pre-approved with us will not only give you extra bargaining power at the dealership but will also give you peace of mind that you won’t be deceived into a yo-yo car sale. Additionally, RMLEFCU offers car loans that start at very low member rates.

What To Do If You Become a Victim of Yo-Yo Car Sales

If you think you may have been taken advantage of by yo-yo car sales tactics, there are several steps you can take to address the issue. First and foremost, contact your local consumer protection agency as soon as possible; these agencies are dedicated to protecting consumers from unfair practices such as yo-yo car sales. Additionally, if your dispute cannot be resolved through consumer protection services, consider taking legal action against the dealership responsible for using these tactics on you.

The Big Takeaway

Yo-yo car sales are an unethical practice used by some dealerships to force a sale and make an extra buck off unsuspecting customers. It’s critical for car buyers to be aware of this practice so they can take necessary steps to avoid being conned by these conniving dealerships. By researching dealerships thoroughly before making any purchases, always reading contracts carefully before signing them, and getting pre-approved with a lender like RMLEFCU, you can rest assured that your next car buying experience goes as smoothly as possible.

If you’re interested in applying for one of our auto loans to reap the benefits of pre-approval, reach out to us at (303) 458-6660 or stop by any of our branches.

*Annual Percentage Rate. Restrictions may apply. Rates subject to change.