It can be difficult to find a car within your price range, especially in today’s market.
Throughout 2024, some car experts have advised that now is not the time to buy a new car, as well as noting that there could be an impending collapse of car prices.
Still, this is not a sure thing, and there are also experts who insist that now is a good time to buy a car as dealerships are finally beginning to cut prices.
Regardless, there are just some people who can’t wait to buy a car, and so, they head to the dealership in search of a vehicle in their price range. TikTok user Dani (@its_danig) was one of those people, going to the dealership in search of a car for her parents. She ended up finding one for a good price—or so she thought.
Why did this monthly payment jump from $280 to $418?
In a video with over 661,000 views, Dani says she went to a dealership to pick up a used car for her parents. She eventually settled on a 2018 vehicle with around 50,000 miles on it, managing to secure the car for a monthly payment of $280.
However, the dealership later called her and said that they would not be able to offer her the car at that rate. Instead, they said that her monthly payment was now $418.
“I’m like, ‘No, it’s not,’” Dani says. “‘You told me $280. No one said anything about the financing not being approved already. No one told me a d*** thing about it. I’m not paying $418, or whatever the h*** it is.’”
While the dealership appeared to have tried to negotiate a lower monthly payment, it was still higher than what Dani originally agreed—and so, even though Dani says she will be paying off the car before the loan term, she says that she will be “taking the car back.”
What happened next?
In a follow-up video, Dani says that she was able to secure financing under the original terms with her credit union. Additionally, she says she plans to refinance after a year and pay off the car before the end of the loan term.
The ordeal appears to have stemmed from Dani signing a “spot delivery” agreement—a concept unfamiliar to her and one she says was poorly explained at the dealership.
“I didn’t read it very well, I guess, but…I went back and read it and I still didn’t understand it, and it just goes to show that I need to read things better and ask questions more, and that’s fine,” she details.
What is a “spot delivery” agreement?
For context, a “spot delivery” agreement, sometimes referred to as “yo-yo financing,” occurs when a car dealership allows a customer to bring home a vehicle before the financing is fully finalized. As noted by Jacqueline DeMarco for Capital One Auto Navigator, this is common when the dealership needs time to secure approval from a lender for the buyer’s loan.
While there are benefits to this kind of an agreement, such as the ability of the buyer to immediately take the car home, there are also issues that can arise.
If the seller cannot secure a loan for the buyer, they may ask the buyer to take on less-than-favorable financing (with high interest rates) to keep the car,” DeMarco writes. “Alternatively, the buyer would have to return the car—or risk having it repossessed or reported as stolen.”
@its_danig Dumb.
♬ original sound – its_DaniG
Commenters share their thoughts
In the comments section, users offered their opinions on Dani’s situation.
“Definitely a shady dealership lol if they’re are shady about the paperwork imagine how shady they are with the cars they buy and sell,” wrote a user. “I would take it back and run away.”
“If you have a credit union try getting the loan through them. That’s what we did and the dealership said there was no way they could even come close to the apr my credit union gave us,” added another.
“Oh boy glad you got that switched to your credit union, 1st rule of buying a car from a dealer, never everrrrr finance with them,” stated a third. “if you know youre gonna finace, get pre approved for an amount with your credit union, then you know what your car buying power is, and you can avoid all the hassle with the dealer.”
The Daily Dot reached out to Dani via Instagram DM and comment.
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