Yo-yo financing works like this: the dealer lets you drive the car home on a "spot delivery" while the financing is still being arranged. Days or weeks later, the dealer calls to say the original financing fell through and you need to come back and sign new documents with worse terms. The dealer may threaten to repossess the vehicle if you do not agree.

This practice is deceptive for several reasons. First, dealers typically know at the time of delivery whether the financing is approved — the "financing fell through" story is often false. Second, the dealer uses the buyer's attachment to the vehicle (and fear of losing it) as leverage to extract worse terms. Third, the practice violates the Truth in Lending Act's requirement that financing terms be disclosed accurately and completely at the time of the transaction.

Under Florida law, yo-yo financing can constitute a FDUTPA violation, fraud, and a violation of § 501.976. The dealer's representation that the original financing was approved — when it was not, or when the dealer knew it might not be — is a misrepresentation that induced you to take delivery and give up your negotiating position.

If you are in a yo-yo situation, you have options. You can return the vehicle and demand the return of your down payment and trade-in. You can negotiate from a position of knowledge — the dealer needs to complete the transaction too. Or you can consult an attorney before signing anything new. Do not let the dealer pressure you into signing new documents without understanding your rights.

If you already signed new documents under pressure, you may still have claims for the difference in financing costs between the original terms and the new terms, plus attorney's fees under FDUTPA. Document everything — save all communications with the dealer, keep copies of both sets of financing documents, and note the dates and substance of all conversations.