Oklahoma Is Ahead of the Pack on Automobile Spot Delivery Laws
Shottenkirk, Jerry, THE JOURNAL RECORD
Non-prime spot delivery of automobiles has been in place in Oklahoma since 1998, and the state's rules and regulations regarding the transaction are quite favorable compared to some other states, said Eric Johnson, consumer financial services attorney at Phillips, McFall, McCaffrey, McVay & Murrah.
Johnson was a featured panelist at the National Automotive Finance Industry Conference last week at Lake Las Vegas. Johnson presented Spot Delivery in These United States: Legal Update and Trends in Spot Deliveries, a program that went into the rules of non- prime auto financing.
Non-prime customers are those who have less than perfect credit. While customers with A and B credit often secure credit elsewhere, those with lower scores often have credit arranged by dealers who work with an array of finance companies.
Spot delivery allows customers to secure a vehicle before the financial information is approved.
Oklahoma sets the terms better in what happens to a down payment and what happens to a traded-in vehicle (if financing is not approved), Johnson said. It's probably a lot more favorable to consumers than in other states.
The state's New Motor Vehicle Commission and Used Motor Vehicle Commission set the regulations for the transactions.
In 1998 the New Motor Vehicle Commission came down with rules saying if you are going to spot deliver, here are the terms you have to use and here is what has to be in your agreement, Johnson said. Spot delivery has probably been around for the past 20 or 30 years but they just didn't have any set terms between the dealer and the consumer. …