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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.
Rachel Juillerat · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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