Spot Delivery

Spot delivery occurs when a dealer allows a customer to take delivery before financing is formally approved and funded. The dealer delivers on a conditional approval, expecting the lender to fund within a short window. If the lender declines, the dealer must unwind the deal.

Spot delivery is common practice but carries risk. Dealers should have a clear spot delivery agreement, ensure the customer understands the conditional nature of the transaction, and have a defined process for handling any deals that need to be unwound. Proper documentation protects the store if a deal falls through.