Arizona Auto Purchases

Arizona consumers should beware of "spot-delivery" when purchashing a new or used car. Spot-delivery is a unscrupulous lending practice employed by many Arizona auto dealers in which the dealer delivers possession of a vehicle to a customer, on the spot, before financing is in place. Often in an on the spot delivery deal important financing terms are left blank on the purchase contract. When this is done, the dealer is free to enter terms that are detrimental to the consumer.

Arizona residents have reported many cases in which car dealers allow customers to believe the financing is already approved or will be approved very soon, and the customer will take possession of the vehicle. The dealer will then wait a few days, or even weeks, then tell the customer that original financing deal could not be obtained. The consumer is then asked to either return the vehicle or the dealer will re-open negotiations. If the consumer traded in a used vehicle, Arizona law requires dealers return that car if financing cannot be obtained, but dishonest dealers may claim that the consumer’s trade-in vehicle has already been sold.

After having driven the car for days or weeks, often the customer doesn't wish to reliquish his new vehicle and the dealer then arranges financing at much higher terms than originally offered.

The Arizona Attorney General's office advises consumers:

• Not to accept “spot delivery.” Wait until financing has been approved before you take possession of the vehicle from the dealer.
• To carefully read the contracts before signing. If there are blanks left in the contract, ask the dealer to complete the blanks before signing any paperwork.
• To consider shopping for financing before you go to the dealer.