May 20, 2026
By Barrie Charapp Beaty
Charapp & Weiss, LLP
bbeaty@cwattorneys.com
Spot delivery continues to be a hot button for federal and state regulators and particularly plaintiffs’ Its time for a refresher quiz on spot delivery. With the FTC looking closely at dealer practices, dealers and personnel need to be reminded of what is correct for spot deliveries.
Where are the rules? Usually in state law. A few states prohibit spot deliveries. Some states have enacted statutes to standardize spot delivery practices. Many states have not specifically addressed spot deliveries. Even where there is no specific statutory permission, one must still avoid certain practices to protect against claims of unfair and deceptive acts and practices under state law and federal law.
Here is a quiz to determine your knowledge of proper spot delivery practices.
- True or False? Unless spot delivery is prohibited by state law, a dealer has a right under state law to rescind a deal prior to titling the vehicle for the customer.
- True or False? Once we deliver a vehicle, we must seek approval from a finance or lease source.
- True or False? Even though we have determined to rescind a RISC or lease, we can negotiate a revision with a customer.
- True or False? Once we decide we must rescind a deal, we can retake the vehicle in any way we can.
- True or False? We have put the car out for pick up by a recovery service because we decided to rescind the deal, but we are unable to find it. We can report it stolen.
- True or False? We have a difficult customer who is finally agreeing to return the vehicle. Because of the extra work we had to do, we wish to keep the downpayment. We may do so if we can justify our expenses.
- True or False? We spot delivered a car. We have limited space to hold the trade. We decided to wholesale it on a string. That is permitted.
- True or False? Once I spot deliver the vehicle, I should not pay off the trade until the deal is complete.
- True or False? We have the vehicle back. Our policy is to charge half the federal allowance for mileage put on the vehicle, and we may do so.