Can a Car Dealer Reposses My Car?
Spot Delivery and Yo-Yo Scams
Many people have never thought that a car dealer could "undo" or "unwind" a credit contract before the first payment is even due. But this practice is has been around for more than 50 years and continues to plague consumers.
If a car dealer has told you that your credit has fallen through or that they need to unwind the financing, you may be a victim of a spot delivery or yo-yo scam.
Are Spot Deliveries and Yo-Yo Sales Legal In Michigan?
Michigan financing and vehicle title law make it illegal to engage in spot deliveries and yo-yo scams. Under Michigan law, if a car dealer executes the contract of sale and financing contract, then the deal is done, and the dealer has no right to "unwind" the deal. The only reasons that a dealer can repossess the vehicle are if the consumer defaults on the contract. The conditions of default are usually on the back of the installment contract or financing agreement. But, if you have not missed a payment or defaulted, the car dealer must honor the contract.
Why Do Car Dealers Spot Deliver Vehicles?
Usually, car dealers will try to repossess cars if they are unable to find a finance company that is willing to assume payments on the car loan from the consumers. This can happen for a number of reasons, but most often, it happens because the car dealer has lied to the finance company about the deal or falsified paperwork. If the finance company finds any problems with the paperwork, they will refuse to take the deal, even if they have previously approved the consumer for financing.
Contact Lyngklip & Associates for a Free Phone or Zoom Consultation
There's no need to fight a crooked car dealer by yourself. Get the representation of Michigan's wrongful repossession law firm.