yo-yo financing
n.— «The consumer signed a financing contract with the dealer without fully understanding the terms, or the contract was incomplete or not in writing. The customer assumes the credit deal is finalized and the car is theirs. The auto dealer delivers the vehicle “on the spot” and permits the customer to take possession of the car. Some weeks or even months later, the dealer contacts the customer to advise them that their financing plan was not approved and they must agree to new financing—at less favorable terms—or return the car. This practice is called “yo-yo” financing. The dealer stands accused of not having properly disclosed the credit deal he originally sold to the customer was conditional on the approval of the application.» —“Advance preparation can sweeten new car-buying experience” by Trish Powell Midland Reporter-Telegram (Midland, Texas) Feb. 16, 2007. (source: Double-Tongued Dictionary)
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