Spot Delivery
The practice of “spot delivery” occurs when the buyer and dealer sign the installment sales contract and the buyer takes delivery of the vehicle “on the spot,” prior to the seller obtaining financing from a lender. The dealer then may require the buyer to return the vehicle or sign a new contract if they are unable to obtain financing.
It is the position of the Department of Insurance and Financial Services (DIFS) that once a motor vehicle loan is closed and the buyer takes possession of the vehicle, the dealer cannot rescind the contract or request the return of the vehicle for any reason. Dealers are required to ensure all conditions related to the closing of an automobile purchase be met prior to the borrower’s execution of the contract. If the dealer is unable to secure financing, the dealer must accept payments from the borrower at the same or better terms until they can secure financing on the borrower’s behalf at the same or better terms.
New loan documents should not need to be resigned nor should any terms of the contract change from the original terms.
Reviewed 06/2025
