MICHIGAN STATE AFIP EXAM
QUESTIONS AND ANSWERS 100%
VERIFIED
Installment sale and consumer lease agreements must be available in English. -
ANSWER-True
Before taking any collection against the _____ the creditor has to send the ____, by first
class mail, a notice indigating the primary obligor has become delinquient and the
_____ is responsible for payment obligation. - ANSWER-cosigner
When it comes to document prep fees they are permitted if charged for both cash and
credit sales. They cannot exceed _______ - ANSWER-5% of cash price or $220,
whichever is less.
The state of MI imposes installment sales contract it has to include the following: -
ANSWER-1. Do not sign this contract if it's blank
2. You are entitled to a true copy of the contract you signed without charge.
3. Warning: The insurance hereunder does not cover liability to persons or damage to
property unless indicated heron
The seller or sellers agent is required to sign the contract at the time the buyer signs it -
ANSWER-True
The seller or sellers agent MUST give the buyer a copy of the executed contract at the
time the contract is executed. - ANSWER-True
The maximum finance charge is ___ for all vehicles. - ANSWER-25%
There is no maximum term on retail installment agreements. - ANSWER-True
A dealer may not advertise or represent a vehicle to be a demo, executive,
manufacturer, leased, new motor, used vehicle, second hand vehicle, unless it is
defined in MI motor vehicle code. - ANSWER-True
An extended service contract, maintenance plan, road hazard protection, or auto club
service are... - ANSWER-add on products that are not considered insurance by MI and
do not require a seperate listing or itemization
Dealers are allowed to sell and finance ____ - ANSWER-1. Satellite Radio and 2. MET
products
QUESTIONS AND ANSWERS 100%
VERIFIED
Installment sale and consumer lease agreements must be available in English. -
ANSWER-True
Before taking any collection against the _____ the creditor has to send the ____, by first
class mail, a notice indigating the primary obligor has become delinquient and the
_____ is responsible for payment obligation. - ANSWER-cosigner
When it comes to document prep fees they are permitted if charged for both cash and
credit sales. They cannot exceed _______ - ANSWER-5% of cash price or $220,
whichever is less.
The state of MI imposes installment sales contract it has to include the following: -
ANSWER-1. Do not sign this contract if it's blank
2. You are entitled to a true copy of the contract you signed without charge.
3. Warning: The insurance hereunder does not cover liability to persons or damage to
property unless indicated heron
The seller or sellers agent is required to sign the contract at the time the buyer signs it -
ANSWER-True
The seller or sellers agent MUST give the buyer a copy of the executed contract at the
time the contract is executed. - ANSWER-True
The maximum finance charge is ___ for all vehicles. - ANSWER-25%
There is no maximum term on retail installment agreements. - ANSWER-True
A dealer may not advertise or represent a vehicle to be a demo, executive,
manufacturer, leased, new motor, used vehicle, second hand vehicle, unless it is
defined in MI motor vehicle code. - ANSWER-True
An extended service contract, maintenance plan, road hazard protection, or auto club
service are... - ANSWER-add on products that are not considered insurance by MI and
do not require a seperate listing or itemization
Dealers are allowed to sell and finance ____ - ANSWER-1. Satellite Radio and 2. MET
products
