Bill to limit "yo‑yo" auto financing moves to shorten dealer financing window; advocates and dealers spar

Representative Nathan Sosa introduced House Bill 3,178 to the House Committee on Commerce and Consumer Protection on Feb. 4, saying the bill would curb the practice often called "yo‑yo financing," where a buyer signs purchase paperwork, drives the vehicle home and later is told the lender will not buy the retail installment contract under the promised terms.

"The goal of House Bill 3,178 is to make sure that Oregon consumers are not put in that position again," Representative Sosa said. The introduced bill would shorten the time a dealer has to secure promised financing from 14 days to four days (an amendment under discussion would clarify four business days), require a dealer to honor the originally promised terms or void the contract without financial penalty to the buyer if a lender will not purchase the contract, and require a separate, conspicuous disclosure form outlining key terms to buyers — including a requirement to provide the disclosure in another language if the buyer is not proficient in English.

Consumer advocates told the committee they strongly…