What is a backup contract from a car dealer?
A local Toyota dealership is requiring me to sign a backup contract on the car I want to buy. The salesman says that I have to sign this backup contract if I want to purchase the car in case my financing falls through. Not only does it have a higher APR than my credit union loan, but it also means the dealership can run my credit again, potentially lowering my score. What is a backup contract and should I sign it?