What is the Yo-Yo Financing Lawsuit?

The Yo-Yo Financing lawsuit is a legal dispute that involves car dealerships and the practice of yo-yo financing. Yo-yo financing, also known as spot delivery, is a common practice in the automotive industry where a customer can take a car home before financing is finalized. If financing falls through, the dealership may repossess the vehicle, leaving the customer without a car and often in a worse financial situation than before. The lawsuit alleges that this practice is fraudulent and misleading.

Background on Yo-Yo Financing

Yo-yo financing has been a common practice in the automotive industry for decades. When customers want to buy a car, they typically need to secure financing before completing the purchase. However, this process can take days or weeks, which can be a frustrating experience for the customer. To address this, some dealerships allow customers to take the car home before financing has been finalized.

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