AFIP Certification Practice Test 2026: Ace
Your F&I Exam with Realistic Q&A
Description:
Prepare confidently for your AFIP (Association of Finance & Insurance Professionals)
certification with our comprehensive practice exam. This resource is meticulously designed for
aspiring F&I Managers and automotive professionals, featuring up-to-date questions aligned
with the latest 2026 guidelines on TILA (Regulation Z), CLA (Regulation M), UDAAP, and
the Used Car Rule. Test your knowledge on key concepts like credit sales, leasing disclosures,
adverse action, and ethical sales practices with detailed answer explanations that solidify your
understanding. Whether you're studying for the initial certification or a seasoned pro needing a
refresher, this practice test simulates the actual exam format to pinpoint your strengths and
weaknesses.
Stop guessing and start mastering the material that will define your career. Download your free
practice test now and take the first step toward becoming a certified F&I expert!
, AFIP Certification Practice Test 2026: Questions & Answers
1. Which two federal agencies are primarily responsible for enforcing prohibitions against unfair or
deceptive practices in auto financing, and what are the specific terms for their enforcement
areas?
o a) The FTC issues UDAP violations, and the CFPB issues UDAAP violations.
o b) The CFPB issues UDAP violations, and the FTC issues UDAAP violations.
o c) Both the FTC and CFPB jointly issue violations for UDAAP.
Answer: a
Explanation: The Federal Trade Commission (FTC) enforces prohibitions against Unfair or
Deceptive Acts or Practices (UDAP). The Consumer Financial Protection Bureau (CFPB)
enforces the broader standard of Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) for
entities under its jurisdiction.
2. When a second retail installment sales contract must be executed shortly after the original due to
a necessary correction, how should the date on the new agreement be handled?
o a) The date from the original agreement must be used to maintain continuity.
o b) The date the new agreement is signed by the customer must be recorded.
o c) The date is optional, as the contract terms are what matter most.
Answer: b
Explanation: The second contract is considered a new agreement. The date of execution (the
date the customer signs the new contract) must be recorded to reflect the accurate start of the
legal obligation. Using the original date would be inaccurate.
3. In contract law, which event can terminate an offer before it is accepted?
o a) The offeror revokes the offer.
o b) The death or incapacity of the offeror.
o c) A reasonable amount of time has passed.
o d) All of the above.
Answer: d
, Explanation: An offer can be terminated by revocation by the offeror, rejection by the offeree,
death or incapacity of either party, destruction of the contract's subject matter, or by the lapse of
a specified or reasonable time.
4. What defines "consideration" in the formation of a legally binding contract?
o a) A formal written document signed by both parties.
o b) The mutual exchange of something of value between the parties.
o c) The verbal agreement to the terms of the deal.
Answer: b
Explanation: Consideration is the fundamental concept that each party must provide something
of value (e.g., a car from the dealer, a promise to pay from the customer) to make the contract
enforceable.
5. How does the Truth in Lending Act (TILA) categorize a transaction where a dealership helps a
buyer arrange financing for a vehicle purchase?
o a) A direct loan.
o b) A credit sale.
o c) A lease agreement.
Answer: b
Explanation: When the dealership extends credit directly to the customer or arranges the
financing for the purchase, it is considered a "credit sale" under TILA/Regulation Z, triggering
specific disclosure requirements.
6. What is the function of an "acceleration clause" in an installment contract?
o a) It allows for early payoff without penalty.
o b) It permits the lender to demand immediate payment of the entire balance if the borrower
defaults.
o c) It automatically increases the interest rate after a certain period.
Answer: b
Your F&I Exam with Realistic Q&A
Description:
Prepare confidently for your AFIP (Association of Finance & Insurance Professionals)
certification with our comprehensive practice exam. This resource is meticulously designed for
aspiring F&I Managers and automotive professionals, featuring up-to-date questions aligned
with the latest 2026 guidelines on TILA (Regulation Z), CLA (Regulation M), UDAAP, and
the Used Car Rule. Test your knowledge on key concepts like credit sales, leasing disclosures,
adverse action, and ethical sales practices with detailed answer explanations that solidify your
understanding. Whether you're studying for the initial certification or a seasoned pro needing a
refresher, this practice test simulates the actual exam format to pinpoint your strengths and
weaknesses.
Stop guessing and start mastering the material that will define your career. Download your free
practice test now and take the first step toward becoming a certified F&I expert!
, AFIP Certification Practice Test 2026: Questions & Answers
1. Which two federal agencies are primarily responsible for enforcing prohibitions against unfair or
deceptive practices in auto financing, and what are the specific terms for their enforcement
areas?
o a) The FTC issues UDAP violations, and the CFPB issues UDAAP violations.
o b) The CFPB issues UDAP violations, and the FTC issues UDAAP violations.
o c) Both the FTC and CFPB jointly issue violations for UDAAP.
Answer: a
Explanation: The Federal Trade Commission (FTC) enforces prohibitions against Unfair or
Deceptive Acts or Practices (UDAP). The Consumer Financial Protection Bureau (CFPB)
enforces the broader standard of Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) for
entities under its jurisdiction.
2. When a second retail installment sales contract must be executed shortly after the original due to
a necessary correction, how should the date on the new agreement be handled?
o a) The date from the original agreement must be used to maintain continuity.
o b) The date the new agreement is signed by the customer must be recorded.
o c) The date is optional, as the contract terms are what matter most.
Answer: b
Explanation: The second contract is considered a new agreement. The date of execution (the
date the customer signs the new contract) must be recorded to reflect the accurate start of the
legal obligation. Using the original date would be inaccurate.
3. In contract law, which event can terminate an offer before it is accepted?
o a) The offeror revokes the offer.
o b) The death or incapacity of the offeror.
o c) A reasonable amount of time has passed.
o d) All of the above.
Answer: d
, Explanation: An offer can be terminated by revocation by the offeror, rejection by the offeree,
death or incapacity of either party, destruction of the contract's subject matter, or by the lapse of
a specified or reasonable time.
4. What defines "consideration" in the formation of a legally binding contract?
o a) A formal written document signed by both parties.
o b) The mutual exchange of something of value between the parties.
o c) The verbal agreement to the terms of the deal.
Answer: b
Explanation: Consideration is the fundamental concept that each party must provide something
of value (e.g., a car from the dealer, a promise to pay from the customer) to make the contract
enforceable.
5. How does the Truth in Lending Act (TILA) categorize a transaction where a dealership helps a
buyer arrange financing for a vehicle purchase?
o a) A direct loan.
o b) A credit sale.
o c) A lease agreement.
Answer: b
Explanation: When the dealership extends credit directly to the customer or arranges the
financing for the purchase, it is considered a "credit sale" under TILA/Regulation Z, triggering
specific disclosure requirements.
6. What is the function of an "acceleration clause" in an installment contract?
o a) It allows for early payoff without penalty.
o b) It permits the lender to demand immediate payment of the entire balance if the borrower
defaults.
o c) It automatically increases the interest rate after a certain period.
Answer: b
