1|Page
AFIP CERTIFICATION TEST 2025/2026 EXAM
CURRENTLY TESTING NEWEST COMPLETE EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS
WITH RATIONALES!! (100% CORRECT ANSWERS) /A+
STUDY MATERIAL||LATEST EXAM!!!||
Which of the following disclosures are required by the
Consumer Leasing Act/Reg. M to be on a lease
agreement? - Answer-· Detailed information regarding the
lessee's responsibility for maintaining and servicing the
vehicle
· Excess wear and use standards
· An early termination fee
· The lessee's requirement to provide the vehicle
insurance required by the lessor
· Other items not addressed in the question
The APR or Annual Percentage Rate is a mandated
disclosure. It must be used in oral discussions with a
customer, in funding-related advertisements, and on the
retail installment sale agreement. A customer asks, what
does APR mean? Your response should be: - Answer-
That's the "cost of credit" as a yearly rate.
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As noted in the Truth in Lending Act and Reg. Z, if the
customer owes more on the trade-in than the used car
manager allowed, what should the F&I manager do? -
Answer-A. Record the deficiency as a negative down
payment.
B. Increase the price of the vehicle and/or the trade-in so
the numbers still add up correctly.
C. Depending on the situation, either A or B.
D. None of the above
If a Dealer receives a cease and desist order for an ad
they ran that violated the Truth in Lending Act/Reg. Z. If
the Dealer continues to run the ad, what are the potential
penalties? - Answer-They could be required to pay a fine
of up to $41,484 per day, per violation
Which Act does Regulation Z implement? - Answer-Truth
in Lending Act
How are deferred down payments treated under Truth in
Lending Act and Regulation Z? - Answer-A deferred
downpayment occurs when the customer commits to a
larger dollar amount than the unencumbered funds he is
able to provide at the time the request for credit is
,3|Page
submitted to a finance source. (Also referred to as a "hold-
check")
(The customer tenders $3,000 in cash at the time the
credit application is completed and sent to a funding
source. However, the customer promises to provide
another $2,000 in cash within five days. The request for
credit sent to the funding source indicates a downpayment
of $5,000.)
· The total amount of the deferred downpayment must be
paid in full before the second otherwise regularly
scheduled payment. (Before that second direct withdrawal
is taken from the customer's bank account, 100% of the
deferred amounts must have been paid.0
· A finance charge cannot be imposed on the deferred
amount. · The deferred amount cannot be included in the
amount financed - it must be recorded (included in) the
recorded downpayment
· With the exception of California, the deferred
downpayment
NOTE:
If the customer provides one or more check to be included
in the total amount of money recorded as the
downpayment (hold-checks) all of the checks have to be
dated as of the date of the transaction. You cannot collect
"post-dated" checks.
, 4|Page
Whenever discussing financing with a prospective
customer regarding the cost of credit, regardless of if it's in
an oral discussion, advertisement or during disclosure on
an installment sale contract, the term "APR" or "annual
percentage rate" should be used. TRUE / FALSE -
Answer-TRUE
According to Regulation Z, it is necessary to disclose APR
and the Finance Charge? TRUE?False - Answer-TRUE
The Truth In Lending Act (TILA) is implemented by
Regulation Z? TRUE ? FALSE - Answer-TRUE
With the exception of some Precomputed Interest
contracts used by secondary finance sources, all other
installment sales contracts are simple interest or interest-
bearing contracts. The following is a layman's explanation
of a simple interest installment sale transaction. In a
precomputed contract the finance charge is computed on
the assumption the contract will run full term. If the
customer terminates the agreement during the repayment
term, he will receive a refund of the unearned premium.
AFIP CERTIFICATION TEST 2025/2026 EXAM
CURRENTLY TESTING NEWEST COMPLETE EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS
WITH RATIONALES!! (100% CORRECT ANSWERS) /A+
STUDY MATERIAL||LATEST EXAM!!!||
Which of the following disclosures are required by the
Consumer Leasing Act/Reg. M to be on a lease
agreement? - Answer-· Detailed information regarding the
lessee's responsibility for maintaining and servicing the
vehicle
· Excess wear and use standards
· An early termination fee
· The lessee's requirement to provide the vehicle
insurance required by the lessor
· Other items not addressed in the question
The APR or Annual Percentage Rate is a mandated
disclosure. It must be used in oral discussions with a
customer, in funding-related advertisements, and on the
retail installment sale agreement. A customer asks, what
does APR mean? Your response should be: - Answer-
That's the "cost of credit" as a yearly rate.
,2|Page
As noted in the Truth in Lending Act and Reg. Z, if the
customer owes more on the trade-in than the used car
manager allowed, what should the F&I manager do? -
Answer-A. Record the deficiency as a negative down
payment.
B. Increase the price of the vehicle and/or the trade-in so
the numbers still add up correctly.
C. Depending on the situation, either A or B.
D. None of the above
If a Dealer receives a cease and desist order for an ad
they ran that violated the Truth in Lending Act/Reg. Z. If
the Dealer continues to run the ad, what are the potential
penalties? - Answer-They could be required to pay a fine
of up to $41,484 per day, per violation
Which Act does Regulation Z implement? - Answer-Truth
in Lending Act
How are deferred down payments treated under Truth in
Lending Act and Regulation Z? - Answer-A deferred
downpayment occurs when the customer commits to a
larger dollar amount than the unencumbered funds he is
able to provide at the time the request for credit is
,3|Page
submitted to a finance source. (Also referred to as a "hold-
check")
(The customer tenders $3,000 in cash at the time the
credit application is completed and sent to a funding
source. However, the customer promises to provide
another $2,000 in cash within five days. The request for
credit sent to the funding source indicates a downpayment
of $5,000.)
· The total amount of the deferred downpayment must be
paid in full before the second otherwise regularly
scheduled payment. (Before that second direct withdrawal
is taken from the customer's bank account, 100% of the
deferred amounts must have been paid.0
· A finance charge cannot be imposed on the deferred
amount. · The deferred amount cannot be included in the
amount financed - it must be recorded (included in) the
recorded downpayment
· With the exception of California, the deferred
downpayment
NOTE:
If the customer provides one or more check to be included
in the total amount of money recorded as the
downpayment (hold-checks) all of the checks have to be
dated as of the date of the transaction. You cannot collect
"post-dated" checks.
, 4|Page
Whenever discussing financing with a prospective
customer regarding the cost of credit, regardless of if it's in
an oral discussion, advertisement or during disclosure on
an installment sale contract, the term "APR" or "annual
percentage rate" should be used. TRUE / FALSE -
Answer-TRUE
According to Regulation Z, it is necessary to disclose APR
and the Finance Charge? TRUE?False - Answer-TRUE
The Truth In Lending Act (TILA) is implemented by
Regulation Z? TRUE ? FALSE - Answer-TRUE
With the exception of some Precomputed Interest
contracts used by secondary finance sources, all other
installment sales contracts are simple interest or interest-
bearing contracts. The following is a layman's explanation
of a simple interest installment sale transaction. In a
precomputed contract the finance charge is computed on
the assumption the contract will run full term. If the
customer terminates the agreement during the repayment
term, he will receive a refund of the unearned premium.
