Mid-Southerns claim to be victims of 'yo-yo financ - WMC Action News 5 - Memphis, Tennessee

Mid-Southerns claim to be victims of 'yo-yo financing'

(WMC-TV) - They drive them off the lot, only to have the dealer yank them right back.

The auto sales industry calls it "conditional financing" or "spot deliveries." Consumer advocates call it "yo-yo financing," a sales scheme targeting consumers who either cannot pay cash for a used car or cannot secure their own third-party financing.

A buyer puts cash down on a used car and drives it off the lot -- only to be 'yo-yo'd' right back when the financing fails. The dealer then keeps the buyer's down payment as a 'mileage reimbursement.'

And it is completely legal. Click here to read and watch the full story.

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