diff --git a/README.md b/README.md
index 23f7d9c..3bb3978 100644
--- a/README.md
+++ b/README.md
@@ -135,7 +135,10 @@ Here is a list of formatprograms that are supported by default, and thus will be
   And here the link to its page on the python website: http://pypi.python.org/pypi/autopep8/0.5.2.
 
 * `yapf` for __Python__ (supports formatting ranges).
-  It is readily available through PIP. Most users can install with the terminal command `sudo pip install yapf` or `pip  install --user yapf`.
+  Vim-autoformat checks whether there exists a `.style.yapf` or a `setup.cfg` file up in the current directory's ancestry.
+  Based on that it either uses that file or tries to match vim options as much as possible.
+  It is readily available through PIP.
+  Most users can install with the terminal command `sudo pip install yapf` or `pip  install --user yapf`.
   YAPF has one optional configuration variable to control the formatter style.
   For example:
 
diff --git a/plugin/defaults.vim b/plugin/defaults.vim
index 9a08304..20f4266 100644
--- a/plugin/defaults.vim
+++ b/plugin/defaults.vim
@@ -42,9 +42,15 @@ if !exists('g:formatter_yapf_style')
     let g:formatter_yapf_style = 'pep8'
 endif
 if !exists('g:formatdef_yapf')
-    let g:formatdef_yapf = "'yapf --style=\"{based_on_style:'.g:formatter_yapf_style.',indent_width:'.&shiftwidth.(&textwidth ? ',column_limit:'.&textwidth : '').'}\" -l '.a:firstline.'-'.a:lastline"
+    let s:configfile_def   = "'yapf -l '.a:firstline.'-'.a:lastline"
+    let s:noconfigfile_def = "'yapf --style=\"{based_on_style:'.g:formatter_yapf_style.',indent_width:'.&shiftwidth.(&textwidth ? ',column_limit:'.&textwidth : '').'}\" -l '.a:firstline.'-'.a:lastline"
+    let g:formatdef_yapf   = "g:YAPFFormatConfigFileExists() ? (" . s:configfile_def . ") : (" . s:noconfigfile_def . ")"
 endif
 
+function! g:YAPFFormatConfigFileExists()
+    return len(findfile(".style.yapf", expand("%:p:h").";")) || len(findfile("setup.cfg", expand("%:p:h").";"))
+endfunction
+
 if !exists('g:formatters_python')
     let g:formatters_python = ['autopep8','yapf']
 endif
@@ -185,10 +191,10 @@ if !exists('g:formatdef_eslint_local')
             if verbose
                 return "(>&2 echo 'No local ESLint program and/or config found')"
             endif
-            return 
+            return
         endif
 
-        " This formatter uses a temporary file as ESLint has not option to print 
+        " This formatter uses a temporary file as ESLint has not option to print
         " the formatted source to stdout without modifieing the file.
         let l:eslint_js_tmp_file = fnameescape(tempname().".js")
         let content = getline('1', '$')