I've become a victim of Spot Delivery Scam.

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SkyActivG

Joined
Oct 15, 2013
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Location
Maryland
My Story....





On 12/29/2015 I went to a Honda dealership to purchase a 2016 Accord. The sales manager pulled my credit which was 574, but due to my good standing with Honda Financial, they were supposedly able to get me approved with 2k down at 10%. I drove off the lot that evening in a new car. I just needed to come back with the trade title signed by the co owner which was my grandfather and an additional 1k. I met with a different business manager and she talked about a credit freeze on Experian. I told her yes I have one, but the other two CBs aren't frozen. She then mentioned that she was working with another bank. I'm not sure what she meant by another bank. This whole deal sounds troubling to say the least. The dealership had the 30th and possibly the 31st of December to get the financing situated. I'm not sure what to think at this point. Should I call Honda Financial tomorrow to see what exactly is going on instead of going back to the dealership? I didn't mention the additional 1k because the business manager was a different one. Please Please everyone watch out for Spot Delivery Scams. This is the first time that I've encountered such horrid unprofessional dealership practices. I've already notified the Better Business Bureau and next will be the Attorney General and FTC. I'm not to be toyed with in regard to scams. I can have this dealership take the car back and take a serious loss.
 
It's unfortunate that this happened to you, and should remind you to stay away from that dealer in the future.

Also, only ever pay cash for a car. Paying interest is a mugs game.
 
Let's see, if you were in good standing, your interest rate wouldn't be 10%. You should just let them unwind the deal and see what rate you qualify for at a credit union like Penfed. But a 574 is not a good score. I don't think they did anything too slimey, the bad credit score makes it difficult for the dealer too. If you read other threads, this is somewhat typical. They think that the bank will do 10%, but if the bank rejects it once they get all the paperwork, then they shop it to different banks hoping one will take it. If not, then they unwind the deal. They're just trying to get deals done. As I said, your low score didn't help you. It's usually only that low when you didn't pay a few bills, you probably have a couple of 1x30 day lates or worse, 1x60 or 1x90. When you pay your bills on time, you can get rates of 3%, when you don't, it's 10% or more.
 
Holy smokes...someone who presumably doesn't pay their debts complaining about how they're treated by a creditor. Lots of irony/karma is all I read.

BTW, I love & expect Spot Delivery - it's how I roll.
 
You're only a victim of the scam if you took title to the car and paid a higher rate than quoted. Even then you'd have to sign papers which you could refuse to do. Having said you might have one [censored] of a fight getting a cash deposit back. NEVER leave a deposit on a car of more than $500, I leave as little as possible. Never pay that deposit with anything but a credit card. Oh and never co-sign a loan for someone. If they don't pay you're responsible as a co-signer and it's your credit that will get trashed if you don't pay.

Honestly with a 574 credit score I doubt Honda will finance the deal. The only option the dealership has is probably a sub-prime lender specializing in bad credit loans. People with bad credit don't have many options unless they can pay in cash.

As a side note when I sold cars interest rates for sub-prime loans were in the 18% or higher range. And the F&I guy forced them into extended warranties telling them the bank wouldn't fund the loan w/o it. Be careful. Good luck!
 
I don't think you were scammed. The dealership is doing everything they can to sell you a car. Trust me. They want to sell you several cars !

Find someone that can help you make the right moves to get your credit score higher. In a few months you may be able to really get a better deal.
 
With a credit score that abysmally low, you'll likely have go through an alternative financer that specializes in bad credit. That's probably what's happening; Honda wouldn't give you credit so they're trying to find an alternative.

What on earth did you do to get a credit score that low? If you're having that much trouble paying your bills, it'll be better for you to pay off all of your debt in a timely manner and raise your score before buying more luxuries on credit.
 
If you did not sign anything for payments, interest or term (loan note) and clearly have bad credit you are mercy of bank and what dealer can provide.

A brand new accord at 10% interest because you have bad credit seems like an expensive choice that will not help you get out of bad credit.
 
You drove the car off the lot, what is the rate you signed off at, and with what bank? Maybe Maryland does business different than NY but no one ever rolled off the lot with a car unless the deal was fully funded and all papers were signed. Am I missing something or have things have changed in auto sales in the last 14 years?

How this unfolds will be very interesting. To the dealer that car is now a used car if they have to take it back. I wonder what will happen with your deposit if you have to return it. Someone messed up big time IMO.
 
Originally Posted By: stevejones
Holy smokes...someone who presumably doesn't pay their debts complaining about how they're treated by a creditor. Lots of irony/karma is all I read.

BTW, I love & expect Spot Delivery - it's how I roll.


A dealer is not a creditor and could absolutely car less if the debtor makes a single payment. They get a kick to sell loan and especially at higher rate then what is required for these dregs (no offense OP) for making the deal.

My wife takes advantage of dealers in having me taking extras to sweeten selling price and also their financing only to rip it all away at signing and use her own credit union. Very upset finance managers.
 
Originally Posted By: Olas
Save up enough money to buy it.


Olas, your repeated advice is sound but in this real time situation is pretty much meaningless. The OP has some personal financial issues with that credit score and apparently had to have grandpa co-sign the last car loan. There might be more financial back-story than he cares to share. Hope grandpa doesn't get burned when it all shakes out.

The hardest thing is usually to bear down and fix the credit score and whatever caused it instead of kicking the can down the road again. Too late for that. Good luck OP, let us know how it shakes out please.
 
Originally Posted By: AZjeff
Originally Posted By: Olas
Save up enough money to buy it.


Olas, your repeated advice is sound but in this real time situation is pretty much meaningless. The OP has some personal financial issues with that credit score and apparently had to have grandpa co-sign the last car loan. There might be more financial back-story than he cares to share.


From the outside an 2016 Accord is an expensive choice for person who needs to take advantage of family kindness with a poor record of paying bills....I hope grandpa doesn't get burned either .
 
Good luck. Hopefully something good happens on Monday, that helps to move this issue towards some sort of resolution.
 
574 score is a fairly high risk loan. Did he think he deserved a better deal on looks or something else? I see no scam here with the information provided. Ed
 
Reading Skyactiv's post again carefully just raises more questions about the whole transaction. He put $2K down and had to go home and get $1K more and a title to a trade-in co-signed by grandpa. Having a title usually means the car is paid for (good thing) but needing $3K with a trade to make a deal sounds like the trade didn't have much value. Sounds like the finance guy was being creative to get a car sold at the end of the year.

Sky, are you saying that after almost 2 weeks you don't think the financing is a done deal? That's fishy.

Sorry the conversation hasn't supported your side better, especially knowing how poorly people thing of new car dealers' methods. Instead of the BBB, AG, FTC, NAACP, AARP etc. you might have better luck telling your story to the guy on the local news who goes and embarrasses businesses to give people their money back. Again, good luck.
 
If you have a signed contract and they changed anything get a lawyer and don't give them any more money and don't make any payments until you talk to that lawyer.

A friend drove a brand new Ford for 3 years without making any payments because the dealer changed the contract after the deal was made. The friend finally dropped off the car at the dealership and went on his way.

You need help from someone on your side of the deal.
 
Originally Posted By: AZjeff
Reading Skyactiv's post again carefully just raises more questions about the whole transaction. He put $2K down and had to go home and get $1K more and a title to a trade-in co-signed by grandpa. Having a title usually means the car is paid for (good thing) but needing $3K with a trade to make a deal sounds like the trade didn't have much value. Sounds like the finance guy was being creative to get a car sold at the end of the year.

Sky, are you saying that after almost 2 weeks you don't think the financing is a done deal? That's fishy.

Sorry the conversation hasn't supported your side better, especially knowing how poorly people thing of new car dealers' methods. Instead of the BBB, AG, FTC, NAACP, AARP etc. you might have better luck telling your story to the guy on the local news who goes and embarrasses businesses to give people their money back. Again, good luck.
\


DON'T mix him up with me. My wife and I paid cash for the vehicles new in my sig.
 
Originally Posted By: SkyActivG
I can have this dealership take the car back and take a serious loss.


That is your answer right there. Return the car. There are other dealerships and better cars than a Honda.
 
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