How does spot delivery work?

How does a spot delivery work? I heard about them before and want to avoid them when I buy my next car.

Answer
“A spot delivery allows consumers to drive off with a new or used vehicle the same day. It’s a common dealership practice that’s often considered a scam.
The dealer will allow you to take your car home without receiving a loan approval or denial. If your loan is denied, you may be forced to return your car or sign a new (and unfavorable) contract.
Dealers like spot deliveries because people are more likely to sing unfavorable contracts when they already have the car. Spot deliveries are often considered scams and some states even made them illegal.
The best thing you can do to protect yourself is to wait until all paperwork is completed, approved, and finalized. You might have to wait a day or two to take your car home, but you’ll be glad you avoided the headache!
Once you get a good price for your new car, keep in mind that lenders will require full coverage. The higher the coverage, the higher your car insurance rates, but that doesn’t mean you have the empty your pockets for the proper coverage. Try using the Jerry app to help you save money. Jerry compares rates from 50 of the top providers and delivers the best deals to your phone in minutes for free.”
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Rachel Juillerat
Answered on Sep 10, 2021
Rachel Juillerat has her Master's in Publishing & Writing from Emerson College. You can view her work in the Independent, Cupid's Pulse, and the Penmen Review. She has worked in personal finance for five years before transitioning to insurance. She lives in Boston, where she spends her time exploring small New England towns, learning new skills, and napping through her cat's zoomies.
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