4 Ways To Avoid A Yo-Yo Scam

Financing a car can be difficult enough without being scammed. It is especially hard for borrowers with subprime credit. Unfortunately, some dealerships do not hesitate to take advantage of their potential customers. The yo-yo scam has become a common way of getting people to agree to higher loan rates. Here are four ways to avoid yo-yoing.

  1. Secure a bad credit car loan before you go to a dealership.
  2. If you can not secure financing prior to shopping, go to several dealerships in order to compare pricing and interest rates.
  3. Read all of the paperwork. You are allowed to take all of the paperwork home with you prior to making your decision.
  4. Never drive away until you are sure the sale and financing are finalized.

Despite these cautions, you may have a dealer try to run a yo-yo scam on you. If you think that you are being scammed, tell the dealer outright. Let them know that you will be contacting the Better Business Bureau and the Consumer Financial Protection Bureau. That should make them wary of scamming you.