Car Title Delay


Car Title Delay Scam: How It Works

This scam occurs when the dealer delays paying off your car because of their floor plan. A floor plan is a credit line for dealerships to buy vehicles. It allows them to go to auctions and buy their inventory without paying for it up front.

This is obviously very handy for small dealerships that do not have enough money to pay for their cars. The lender receives interest payments from the dealer for their inventory, and are paid when the car is sold.

Most dealers don’t want to keep hundreds of cars on their lots without a floor plan since they have to pay a commission every time they sell a vehicle. So, if it is a bad month, the dealership will delay the clients’ paperwork in order to manage their numbers and not have to pay the lender.

This means you have just bought a beautiful car and think everything has gone smoothly, but the dealer might have delayed the registration of your new car while they still have the loan from your bank.

Car Title Delay Scam: How To Avoid

This scam does not happen very often as the dealership could lose their floor plan forever and be out of business, but it does still occasionally occur. The worst case scenario would be if you had an accident while your car is not registered to you as you would not be eligible for your insurance, even if it was not your fault.

Make a phone call the day after buying the car to check with the dealer, just to let them know you are on the ball.


Car Title Delay Scam: How To Report

Let your family and friends know about the Car Title Delay Scam by sharing it on social media here, using the buttons provided. You can also officially report the scammers and questionable dealers to the Federal Trade Commission using the link below:

Report To The FTC Here

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selma hrynchuk
Selma HrynchukSelma is a fraud prevention specialist renowned for her expertise in private eye investigations and a remarkable partnership with law enforcement agencies. Beyond her investigative triumphs, her public speaking engagements and written works have empowered countless individuals to protect themselves and stay ahead of deceptive schemes. Selma's legacy shines as a tenacious agent of change, unyielding in her commitment to battling fraud and ensuring a safer world for all.

2 thoughts on “Car Title Delay”

  1. I had a paid of car that took in for a trade to get a new car and pay the rest of the amount. The first thing they asked me for was if I owned the car and I I had the title, we got in the agreement of the payments and they had verified my application. They called me to let me know I qualified and so we signed of the car now are buying a diff car, payments haven’t started but now the dealer ship called and asked me if I had the title that their waiting for it? I said no you guys have the title. Would they even do a trade without one, Idk what’s their deal here.

  2. A automotive finnace company sent me 3 quotes for refinancing my vehicle. I have since chosen to stick with my current lender. Today, the company called my office to verify employment. In the loan documents they sent me, there was an authorization form to collect this information from my employer. Obviously I didn’t sign nor submit it. Is this legal to initiate a loan or proceed without authorization from me?

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