Signing online for credit

Car buyers will be able to electronically sign credit agreements online from December 31.

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Car buyers will be able to electronically sign credit agreements online from December 31.

At the moment, consumers applying for finance using the internet have to sign a hard copy of the agreement before the contract is completed.

Unlike finance arranged at a car dealership, buyers signing an agreement online will get a 14-day cooling-off period during which they can cancel without penalty.

Whatcar.com editor James Harding said: ‘The 14-day cooling off period is welcome but we would still encourage buyers to take their time and not rush into any credit agreement.

‘Make sure you read and understand all the terms and conditions and appreciate the true overall cost of the finance, not just the monthly payment. You could save hundreds of pounds by shopping around for the best deal – see the Whatcar.com advice section.

‘If you sign a credit agreement at a car dealership, there is no opportunity to back out so tread carefully. If you prefer hard copies of credit agreements, bear in mind that finance arranged away from a creditor’s premises, at your home for example, provides a five-day cooling-off period.’

New rights for buyers signing finance deals at car showrooms will not be introduced until the spring of 2006.

• Visit Whatcar.com’s advice section for more help.