Here at Auto Credit Express, we always get questions about auto finance contracts, but lately we`ve received a series of consumer inquiries that look pretty much like this: “What is a conditional sales contract?” Check your arbitration agreement to make sure it applies to a conditional delivery and that it will survive a terminated agreement. e) A conditional delivery contract may not exceed fifteen days. In the automotive sector, these types of contracts are referred to as “conditional sales contracts” to “conditional supply contracts”. 2. The subcontract shall contain the agreed value of the subcontracted vehicle (1);  And if you have lined up all your ducks, you can make conditional deliveries with minimal risk. And you can also correct all these types of media if they ask you if you`re making “yo-yo” deals by saying, “No, we`re making conditional deliveries.” Volume 4, Edition 6 Yes, if you have accepted something and they withdraw you and ask you to withdraw under the wrong conditions, just say no. Here are the keys. Tell them that you know exactly what cash delivery is. A second scenario is for the merchant to call the buyer back to the dealership to sign another sales contract – this one does not come with conditions – usually at a higher rate in a practice known as “yo-yo” financing. (b) A retail investor and a potential buyer may enter into a conditional supply contract. (j) The potential retail investor must return the commercial vehicle received under the conditional supply contract in the substantially identical condition in which it was at the time of performance of the conditional delivery contract. Let your attorney check your conditional delivery procedures to first determine if your state`s laws allow the practice and, if so, if the practice is regulated. I would read your contact carefully.

In Ohio, you don`t have “time to think” and the only person who can cancel the sale is the dealer. The sale is subject only to the condition that the dealer is able to obtain financing on the terms you have accepted in your contract, not whether or not you like the car (like some may be different. Click here for a great recent article on national conditional delivery issues. Conditional delivery is legal in North Carolina, but it has to be done in a certain way. To be brief, the dealer must have the consumer sign a conditional delivery contract and a valid sales contract, keep the vehicle on the dealer`s insurance policy (not on the consumer`s insurance policy) and mark a distributor sign (not a 30-day day) on the vehicle. A merchant`s inability to properly structure a conditional delivery transaction can pose a big problem for the distributor – and perhaps a good outcome for the consumer.. . . .