Please help me, I might be in YOYO finance victim soon

[Edwinchik]

Maryland poor guy who first time buying a car

Hi, I had a bad experience in buying my first car already cause I am unsuspecting person, but I finally took the deal as I did signed the contract.

I have seen many cases regarding SPOT DELIVERY or YoYo finance.

After reading some related stories and I have a feeling now that I potentially will be a yoyo finance victim. Like all the contract does, the annual rate , price and everything has listed on the contract, but yet I have not obtain the finance paper work yet, and base on the sales team and finance team in this particular dealer shop, I assume they will tell me finance fell and need a new contract with higher annual rate or deposit , meaning I need to pay more money.

In the contract, it has a sentence stated "The Annual Percentage rate maybe negotiable with the seller. The seller may assign this contract and retain its right to receive a part of the finance charge."

does this implied that the dealer have the legal right to modify a new contract with different terms(Annual rates) and I need to bind it and sign a NEW CONTRACT or I will have to pay the contract payment and they repossess the car? meaning I am paying for nothing...

Or, If I do not agree to sign a new contract, does that mean the contract I signed would be VOID and car return ? I mean, if a dealer is going to do yoyo finance on you, will you still trust them? I am not

 

[quincy]

Hi, I had a bad experience in buying my first car already cause I am unsuspecting person, but I finally took the deal as I did signed the contract.

I have seen many cases regarding SPOT DELIVERY or YoYo finance.

After reading some related stories and I have a feeling now that I potentially will be a yoyo finance victim. Like all the contract does, the annual rate , price and everything has listed on the contract, but yet I have not obtain the finance paper work yet, and base on the sales team and finance team in this particular dealer shop, I assume they will tell me finance fell and need a new contract with higher annual rate or deposit , meaning I need to pay more money.

In the contract, it has a sentence stated "The Annual Percentage rate maybe negotiable with the seller. The seller may assign this contract and retain its right to receive a part of the finance charge."

does this implied that the dealer have the legal right to modify a new contract with different terms(Annual rates) and I need to bind it and sign a NEW CONTRACT or I will have to pay the contract payment and they repossess the car? meaning I am paying for nothing...

Or, If I do not agree to sign a new contract, does that mean the contract I signed would be VOID and car return ? I mean, if a dealer is going to do yoyo finance on you, will you still trust them? I am not

What is the name of your state, Edwinchik?

 

[quincy]

I see you added "Maryland" to your post. Thanks.

Here is a link to the thread you started yesterday: https://forum.freeadvice.com/consumer-contracts-guarantees-warranties-22/contract-i-signed-but-mistakenly-not-my-full-legal-name-613968.html

From the content in that thread, I get the distinct impression that you are looking for a way to void your contract. What is the real problem? Is it that you no longer feel you can afford the car?

You say this is your first car. How old are you?

In Maryland, as a note, you have less to worry about with "yo yo financing" than you might in other states. In Maryland, if financing on your car purchase falls through, you get any money you paid returned and, if you traded in a car for the sale, you get your trade-in back. Maryland dealers cannot sell a trade-in until the sale is final.

That said, it is wise and advised to not drive a new vehicle off the lot until the financing has been approved and the sale is final. Never sign any form until you read it thoroughly and understand what it says and means. In all states, yo-yo financing is considered a deceptive sales practice and is illegal but if you go to a dealer where you experience problems, you can file a complaint with the state Attorney General's office and/or the FTC.