How to avoid a scam known as yo-yo financing when you buy a car.
Transcript
[MUSIC PLAYING] Manwell found a car he liked at a local dealership. The dealer offered financing, so Manwell submitted an application, signed some papers, and took the car home. But a few days later, the finance manager called. Manuel's financing wasn't approved. So he went back to the dealership.
They offered him a different financing agreement, but this one had a higher rate and a higher monthly payment. Manwell knew he couldn't afford it, but the dealer started pressuring. Him. If Manwell didn't sign the new agreement, the dealer said he would have to return the car he bought. And the dealer said Manuel couldn't get his old car back because it was already for sale.
Manwell knew his rights. He didn't let the dealer intimidate him. He said he would report the dealer to the Attorney General if they didn't make it right. So the dealer canceled the contract. Manwell returned the car he bought, and the dealer gave Manwell his old car back. Now Manwell knows to compare offers from several lenders. And get his financing before he goes car shopping. If he chooses the dealer financing, he also knows to ask if the deal is final and to get that in writing.
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