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 aim is to assist you make better financial choices by offering you interactive financial calculators and tools that provide objective and original content, by enabling you to conduct your own research and compare information for free – so that you can make sound financial decisions. Bankrate has partnerships with issuers including, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this site are from companies who pay us. This compensation can affect the way and when products are featured on this website, for example such things as the order in which they appear in the listing categories, except where prohibited by law. This applies to our mortgage or home equity products, as well as other home loan products. However, this compensation will not influence the content we publish or the reviews appear on this website. We do not include the entire universe of businesses or financial offers that may be available 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 finance. Editor: Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the end of 2021. They are committed to helping readers gain confidence to take control of their finances through providing clear, well-researched information that breaks down otherwise complicated topics into bite-sized pieces. The Bankrate promises

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This compensation could impact how, where and when products appear in listing categories and categories, unless it is prohibited by law. This is the case for our mortgage, home equity and other home loan products. Other elements, such as our own proprietary website rules and whether or not a product is offered in your area or at your own personal credit score could also affect how and where products appear on this website. We strive to provide a wide range offers, Bankrate does not include details about every financial or credit item or product. After having a relationship with a dealer you drive off in your brand new or newly-purchased vehicle confidently. Although the financing hasn’t been accepted yet, spot delivery allows you to get your new car off the lot in a matter of minutes. But a few days later you get a phone call that no one wants to receive: Your loan isn’t working. If you are in this predicament the next step should be to determine if there is a problem with the information on your application that caused the denial or if you’ve fallen victim to a spot delivery scam. Can you be denied the car loan following preapproval? While the probability of this happening due to the reason that is legitimate is minimal, it is possible to be denied drive off the lot. Here are some common reasons why you may lose your job. The lender is likely to verify your employment when processing your application for funding. If they’re unable to confirm your employment status due to terminated, laid off or resigned, your loan application may be rejected. Your income went down. If it’s due to changes in your job or reductions in your hours at work by your employer or a reduction in hours by your employer, the lender may decide you can pay the monthly car payments and deny you an auto loan. Your application contains unverifiable information. Are there any mistakes on your application? Have you gotten another job or relocate after you were approved for the auto loan? These are all reasons to the lender to deny your loan when you did not inform them of the modifications. There are also instances when your loan may fall through because of a spot delivery fraud. In such a case you’ll have to act quickly to rectify the issue to avoid becoming a next time a victim. Check for indicators of a spot delivery scam When a dealer allows a spot delivery, this means you can leave in your car within the same day that you sign the papers. However, the actual financing of your loan isn’t likely to be finished in the foreseeable future. This is particularly the case if you are an end of the day when banks are closing. Check out how the dealer responds. If the dealer is offering to declare the vehicle stolen or take the vehicle back immediately, then you’re likely dealing with a scam. However, it is important to keep in mind the fact that there is no guarantee all delivery scams are scams. Mistakes can happen. A legitimate dealer might permit delivery on the spot, but they may make an error in your calculator on your loan application, which results in the loan being denied. If the dealer is able to assume that a buyer wouldn’t be approved and requires the buyer to resign for the vehicle with a higher rate of interest, then something fishy is likely to be happening. Examine the original documents. Take a look through the purchase papers. If you saw the ‘Seller’s right to Cancel’ or ‘Limited Right to Cancel’ form, you’re likely to be to have been a victim of a scam. Otherwise known as , these documents allow the seller to engage in the bait and switch method. In essence, this means that you’ll have for a higher amount than what was previously set price of the car. Luckily, these kinds of documents are prohibited in the majority of states. If you do find one among the mountains of documents you signed, it’s likely that you’re dealing an untrustworthy dealer. What do you do if been victimized The reality is that there are scammers across the board in every field. Car dealerships aren’t an exception. If you are a victim of a fraud involving delivery to the point, gather all of those original papers. Next, reach out to the office of . The officials will be able provide you with options at a state-specific level. In certain instances, authorities may request an outline of the events that led to your car purchase. It is a good idea to immediately note down every aspect of the procedure. Otherwise, it can be difficult to put the information later. What can you do to safeguard yourself from future harm if you find yourself in the middle of a scam that involves delivery on-site, there are actions you can take to avoid the same situation in the future. Be wary of ads from dealers in the automotive industry. Always read the fine print to learn more about the rebates and savings the dealer is advertising. Some come with terms that may make them inaccessible to you. Research dealerships to work with A quick internet search can aid you in finding a dealer within your region that has the highest ratings from customers. Avoid dealerships with several negative reviews or have a reputations for having scams. If something about a dealer makes you uncomfortable, find an alternative to deal with. You can arrange financing directly with a lender instead of using the dealer to finance via a bank, credit union, or online lender. You can before heading to the car lot to make sure you get the most competitive rate on financing. Make sure you take your time when purchasing an automobile isn’t easy do not hurry through the paperwork or sign it without understanding the fine print to get the deal done. Avoid a spot delivery You might not be happy with the idea of having to wait around until your loan is completed, approved and paid to drive off in your brand new car. But, staying clear of spot deliveries could eliminate the risk of being a victim of a scam involving a delivery spot. The bottom line: A spot delivery scam can be financially and emotionally taxing. If you’re seeking car, the best choice is to secure credit directly through the lender. Don’t depend in dealer finance. Not only is financing from dealers often more expensive and risky, but you also have the risk of being a victim of a spot delivery scam. If you’re seeking a reliable lender to work with, check out . Learn more

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Written by Contributing Writer Sarah Sharkey is a contributing writer for Bankrate. Sarah writes on a range of topics, such as savings, banking homeownership, homebuying and personal financial matters. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping their readers get the confidence to take control of their finances by providing well-studied, clear information that breaks down complex subjects into bite-sized pieces.

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