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    Quiz #11 – Motor Vehicle Financing

    by Dealer 101

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    1. Question 1 of 3
      1. Question

      Interest rates must be shown on the Contract as “APR*” so Buyers can understand the actual yearly cost of borrowing

      *APR means “Annual Percentage Rate”

      Correct

      Incorrect

      Hint

      Dealers must convert all interest rates to standard APR (Annual Percentage Rate.

      The Annual Percentage Rate (APR) is the annual rate charged for the Buyer’s loan, shown as a percentage that represents the actual yearly cost of borrowing over the term of a loan.

    2. Question 2 of 3
      2. Question

      The “Car Buyer Bill of Rights” limits a Dealer’s compensation from an institution financing the purchase of a vehicle to:

      • Select ONLY the correct answers

      Correct

      Incorrect

      Hint

      California’s “Car Buyer Bill of Rights” (AB 68) limits a Dealer’s compensation from an institution financing the purchase of a vehicle is limited to no more than:

      • 2% for terms up to 60 months
      • 2.5% for terms of 60 months or longer

      This limitation does not apply when the assignment requires the Dealer to bear the entire risk of financial performance for the consumer or when the assignment is more than six months after the date of the Conditional Sale Contract.

    3. Question 3 of 3
      3. Question

      Dealers must disclose all Terms of Financing, including any item purchased

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