We all know the feeling. You have just found the perfect new car, in your price range, with all the features on your wish list. However, the day is just beginning as the next few hours will be spent negotiating with the dealership and signing dozens of documents to complete the financing and transaction.
The process is one most people dread and do their best to avoid at all costs. However, as technology continues to advance, dealerships have found ways to try and speed up the process and reduce the amount of time consumers have to spend buying a vehicle.
Instead of using traditional paper financing applications and contracts, many dealerships have begun to use E-contracts to help speed up the process. By using a digital signature, the overwhelming process can be simplified, saving precious time and frustration.
However, using this process does not come without risk to the consumer. Electronic contracts can be abused by charging more than the final agreed upon price or tacking on additional add-ons totaling hundreds or even thousands of dollars.
E-contracts are validated through electronic signatures which can be extremely difficult to prove when forged or signed without consent. When running a credit inquiry at a dealership that uses E-contracts, you provide your electronic signature. The dealership then has that signature, which could potentially be abused.
While there is no way to fully make sure that E-contracts are not abused, you can protect yourself by getting pre-approved for financing at your local bank or credit union. This prevents running an initial credit inquiry at the dealership, lessening the time your electronic signature is available.
As a PrivacyArmor® participant, you will also receive multiple alerts associated with your credit file to keep you informed about potential misuse. Not only will you receive an alert when a credit inquiry has been run on your credit file, you will also receive an alert when a new credit account or loan has been opened in your name.
By monitoring these alerts, you can be sure to secure your financial wellness and prevent severe damage from occurring.