Is a spot delivery bad?

Is it bad to have a spot delivery? I just bought a brand new car, but I don’t know if I was approved for my car loan.

Answer
“Spot deliveries are a common dealership practice that are often considered a scam and even illegal in some states. Spot deliveries can go incredibly wrong for the customer, so be careful.
A spot delivery allows you to purchase a vehicle and drive off the same day before the loan application is approved or denied.
Unfortunately, if you’re not approved for financing, two things could happen:
  • You have to get a new contract with different terms than the original.
  • If you can’t afford the new terms, you must return the car.
Dealers like spot deliveries because people are more likely to sign on unfavorable deals because they already have the car. Spot deliveries can turn into a major inconvenience. The best thing you can do to protect yourself is to wait until all paperwork is completed, approved, and finalized.
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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