Conditional Delivery Agreement

Late 2024, the LAW^® team revised the document previously titled Limited Right to Cancel, which pertained to "spot deliveries". Explore the highlights of conditional delivery and the highlights of this updated document.

Benefits of Conditional Delivery

A conditional delivery agreement allows automotive dealers to let customers take possession of a vehicle before financing is secured. While this process involves certain risks, when managed properly it provides several benefits to dealers.

Gives you a competitive advantage over dealers who make customers wait by not offering conditional delivery.
Reduces the risk of buyers remorse by allowing customers to take possession of the vehicle without having to wait days for financing approval.
Improves efficiency by easing congestion in the finance office and keeping deals moving.

Using a Conditional Delivery Agreement may help you close deals faster, increase sales, and keep customers satisfied. However, to realize these benefits, the document must be written clearly and used responsibly or you run the risk of unhappy customers and increased regulatory scrutiny. That is why our team put so much effort into creating a document you can use with confidence.

Car salesperson shakes hands with a couple buying a car.

LAW Conditional Delivery Agreement

LAW's revised Conditional Delivery Agreement helps dealers navigate the conditional, or spot delivery process. The document is designed to help set customer expectations about the process, outline what happens if the dealership cannot secure financing for the purchase or lease, and provides protection for the dealer if the vehicle is damaged while in the customer's possession.

Because conditional deliveries continue to draw attention from regulators, the document has been refined and adapted for multiple states, with an updated name that more clearly communicates its purpose to customers. This document can be for both direct and indirect financing. Explore some key document highlights below.

Explore Your F&I Library

LAW Conditional Delivery Agreements are just one of the many documents that may be available in your state's LAW F&I Library^®. These libraries include state-specific and multi-state documents that have been developed through extensive research and collaboration with legal counsel intimately familiar with your state's compliance requirements and best practices. Most documents are available in both print and digital formats for your convenience.

If you are unsure whether your current F&I documents are keeping up with today's compliance standards, fill out the form below to get in touch with a dedicated consultant to schedule a complimentary F&I Document Review. This service includes:

Collecting and reviewing your F&I documents
Providing a detailed assessment highlighting areas of risk in your documentation practices
Discussing ways to help reduce your compliance risk

Don't wait to find out if the documents you're using today are up to the task of protecting you and your business. Reach out today and gain clarity and confidence in your compliance.

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