Multiple consumer groups have petitioned the Federal Trade Commission to deter "yo-yo" vehicle sales transactions. They want the agency to require that retail installment sales contracts declare the contract's credit terms will stand regardless of a dealership's ability to transfer the deal to a lender.
The request by the Center for Responsible Lending, the Consumer Federation of America, Consumers for Auto Reliability and Safety, the National Association of Consumer Advocates, the National Consumer Law Center and U.S. Public Interest Research Group would raise the "spot delivery" stakes for a retailer if adopted.
A spot delivery occurs when a customer takes delivery of a vehicle before a lender purchases the finance contract. It's then up to the dealership to get the contract purchased as soon as possible, at the same terms agreed upon with the customer, which can be dicey.