Bushing Scams at Washington Car Dealerships: How to Spot and Sue for Yo-Yo Financing Fraud
Buying a car in Washington State should be exciting, but bushing scams—also known as yo-yo financing fraud—can turn it into a costly nightmare. If you're searching for "bushing scam Washington state" or "yo-yo financing lawsuit WA," you've likely encountered a dealer who let you drive off with a new vehicle, only to call later claiming the financing fell through and demanding higher terms or add-ons. This deceptive practice violates Washington law, and victims can sue for fraud under the Automobile Dealer Practices Act (RCW 46.70) and Consumer Protection Act (RCW 19.86). As an attorney for plaintiffs specializing in auto fraud and dealership scams in Washington, we've helped clients recover payments, cancel contracts, and secure damages from dishonest dealers. This guide explains bushing scams, red flags, legal protections in Washington, and how to sue for yo-yo financing fraud.
With rising complaints about vehicle purchases to the Washington Attorney General, knowing your rights under the 4-day rule can prevent exploitation—don't let a dealer rig the deal against you.
What Is a Bushing Scam or Yo-Yo Financing Fraud?
Bushing, often called yo-yo financing, occurs when a car dealership allows you to take possession of a vehicle under a "spot delivery" agreement, then contacts you days or weeks later saying the financing wasn't approved. They "yo-yo" you back to renegotiate at worse terms, like higher interest rates, larger down payments, or unnecessary add-ons. This scam preys on buyers' attachment to the car, pressuring them to accept unfavorable changes to avoid losing it.
In Washington State, bushing is illegal if the dealer attempts to alter terms more than four business days (excluding weekends and holidays) after the sale. It's a form of bait-and-switch and violates numerous consumer protection laws. Victims often end up overpaying or stuck with unaffordable loans, leading to repossession or credit damage.
Red Flags of Yo-Yo Financing Scams at Washington Dealerships
Spotting bushing early can save you thousands. Common warning signs include:
Pressure to Sign Quickly - Dealers rush you to drive off without final financing approval, claiming "it's all good."
Calls After 4 Days - Contact more than four business days post-sale demanding changes—Washington law prohibits this.
Evasive Financing Talk - Vague assurances like "we'll handle the loan" without written confirmation.
Add-Ons or Rate Hikes - Sudden requirements for extended warranties or higher APRs.
Trade-In Complications - They sell your trade-in before finalizing, leaving you without leverage.
If these sound familiar, document everything—emails, contracts, and conversations—for a potential lawsuit.
Washington State Laws Protecting Against Bushing and Yo-Yo Scams
Washington has strong consumer protections against dealership fraud. Key laws include:
4-Day Rule - Dealers cannot change financing terms after four business days (excluding weekends and holidays) without your consent.
Consumer Protection Act (RCW 19.86) - Prohibits unfair or deceptive acts or practices; victims can sue for actual damages, treble damages (up to three times losses), and attorney fees and costs.
Automobile Dealer Practices Act (RCW 46.70.180) - Bans false, deceptive, or misleading statements or representations during the course of a motor vehicle transaction, including financing fraud.
Truth in Lending Act (Federal) - Requires clear disclosure of loan terms; violations allow rescission.
How to Spot and Avoid Bushing Scams in Washington
Prevention is key—here's how:
Get Written Approval - Insist on final financing confirmation before leaving the lot.
Review Contracts Thoroughly - Read all terms; question any "conditional" language.
Use Independent Financing - Secure a loan from a bank or credit union first.
Check Dealer Reviews - Look for patterns of yo-yo complaints on BBB or Yelp.
Know Your Rights - If called back, remind them of the 4-day rule and contact a consumer rights lawyer.
If already scammed, don't sign new terms and seek legal advice.
Steps to Sue for Yo-Yo Financing Fraud in Washington State
If you've fallen victim, you can sue the dealership for fraud. Here's the general process:
Gather Evidence - Collect contracts, emails, text messages, voicemails, and payment records showing changes after 4 days.
Consult an Auto Fraud Attorney - We evaluate for consumer protection law violations and will file suit in the proper district or superior court.
Consider Rescission - You can seek to cancel the contract, return the car, and recover payments/down payments.
Pursue Damages - Claim actual losses, treble damages, and fees; most cases settle pre-trial.
Litigate if Needed - With strong evidence, courts should favor consumers in Washington due to the liberal construction and interpretation of consumer protection laws.
Protect Your Rights: Contact a Washington Auto Fraud Lawyer Today
Bushing scams at Washington car dealerships exploit buyers, but with the right legal help, you can sue for yo-yo financing fraud and recover. At Hogue Law Firm, we hold dealers accountable under Washington consumer laws.
If you've been yo-yo'd, schedule a consultation—call 509-934-1998 or fill out our online form. Fight back now.