AFIP BASIC CERTIFICATION EXAM /AFIP
BASIC CERIFICATION PREP EXAM 2025/2026
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS AND
SOLUTION|ALREADY GRADED
A+|NEWEST|BRAND NEW VERSION
!!|GUARANTEED PASS
The maximum dollar amount covered by the Truth in Lending Act/Reg. Z and the CLA/Reg M for
2022 for personal, household or family use 51% of the time is _____________?
B. $61,000
When a purchase or lease exceeds the total contractual obligation of $58,300, it is considered a
best practice to abide by the Truth in Lending Act/Reg. Z or Consumer Leasing Act/Reg. M
regulations.
True
Which of the following is FALSE regarding co-signer requirements under the Credit Practices
Rule?
B. As a co-signer, their credit will not be affected by the loan.
What is the maximum penalty for the violation of Used Car Rule?
A. $43,792
1|Page
,Which of the elements listed below is NOT found on the Used Car Buyer's Guide?
A. That verbal promises made by the dealer are hard to enforce and that consumers should get
all promises in writing
B. To ask to have the car inspected by a mechanic before purchasing the car
C. The typical problems that can occur with respect to a certain mechanical system in the car
D. Whether or not the vehicle is sold with a warranty
They are all found on the Used Car Buyer's Guide
(True/False) You may remove the Buyer's Guide for a test drive, but you must replace it as soon
as the test drive is over.
True
(True/False) The Used Car Rule applies to ALL vehicles regardless of weight.
False
(True/False) You must give the buyer the original or a copy of the vehicle's Buyers Guide at the
sale. The Guide must reflect all final changes at the time of sale. The customer must also sign
the Buyers Guide.
True
(True/False) A dealership must provide a Buyer's Guide in Spanish if the negotiations are
conducted on Spanish.
True
(True/False) If you conduct a used car transaction in Spanish, you are only required to give the
customer a copy of the Spanish Buyers Guide at the end of the transaction and not post the
buyers guide in Spanish on the vehicle?
2|Page
,False
A dealer voluntarily chooses NOT to sell a car as is. The dealer does NOT provide an express
written warranty. The window sticker must indicate the vehicle is sold with _______.
A. Implied warranties only
What is the penalty for violating the Used Car Rule in 2022?
D. $46,517
(True/False) If "certified" used cars are covered by a warranty issued by a third-party company
at no cost to the customer, this information is properly posted on the Buyers Guide by checking
two boxes. The NO DEALER WARRANTY box notes that the dealer is not providing the warranty -
and the OTHER USED VEHICLE WARRANTY box indicates that a warranty is provided by a third
party.
True
Which of the following would the FTC NOT consider a deceptive or unfair act or practice under
the Used Car Rule?
They are all considered
(True/False) The Credit Score Disclosure/Risk Based Pricing/Exception Notice does not have to
be given to everyone, only those you run credit on?
True
Which Act does Regulation B implement?
C. Equal Credit Opportunity Act
(True/False) Since Auto Dealers fall under the guidance of the FCRA and are considered
Creditors; the Risk Based Pricing and Adverse Action notices are a responsibility of the Dealer.
True
3|Page
, (True/False) Best practices dictate that the exception notice be signed by the customer and
retained in the customer's file.
True
(True/False)
As it relates to an applicant's spouse or former spouse, an F&I manager may ask:
1. Whether the spouse will be contractually liable for the installment sale contract (a co-buyer)
2. Whether the applicant is relying on the spouse's income to be creditworthy, even though the
spouse isn't signing the contract)
3. Whether the applicant resides in a community property state
4. Whether the applicant is relying on alimony, child support or separate maintenance payments
from the spouse or former spouse as a basis for repayment of the credit requested
True
What is the purpose of the Risk-Based Pricing Rule?
B. To alert higher-risk consumers that a creditor's decision could result in the consumer
receiving less favorable terms than those offered to other customers.
If a request for credit is rejected by a lender based on the terms originally submitted and the
customer and the lender (and dealer) all agree to a different set of terms, which of the following
should happen?
A. An adverse action notice need not be issued by any party because the customer and lender
(and dealer) accepted the new terms.
(True/False) In addition to the federal discrimination rules under Equal Credit Opportunity Act
and Regulation B, many states have similar regulations with more extensive lists of prohibited
practices.
True
4|Page
BASIC CERIFICATION PREP EXAM 2025/2026
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS AND
SOLUTION|ALREADY GRADED
A+|NEWEST|BRAND NEW VERSION
!!|GUARANTEED PASS
The maximum dollar amount covered by the Truth in Lending Act/Reg. Z and the CLA/Reg M for
2022 for personal, household or family use 51% of the time is _____________?
B. $61,000
When a purchase or lease exceeds the total contractual obligation of $58,300, it is considered a
best practice to abide by the Truth in Lending Act/Reg. Z or Consumer Leasing Act/Reg. M
regulations.
True
Which of the following is FALSE regarding co-signer requirements under the Credit Practices
Rule?
B. As a co-signer, their credit will not be affected by the loan.
What is the maximum penalty for the violation of Used Car Rule?
A. $43,792
1|Page
,Which of the elements listed below is NOT found on the Used Car Buyer's Guide?
A. That verbal promises made by the dealer are hard to enforce and that consumers should get
all promises in writing
B. To ask to have the car inspected by a mechanic before purchasing the car
C. The typical problems that can occur with respect to a certain mechanical system in the car
D. Whether or not the vehicle is sold with a warranty
They are all found on the Used Car Buyer's Guide
(True/False) You may remove the Buyer's Guide for a test drive, but you must replace it as soon
as the test drive is over.
True
(True/False) The Used Car Rule applies to ALL vehicles regardless of weight.
False
(True/False) You must give the buyer the original or a copy of the vehicle's Buyers Guide at the
sale. The Guide must reflect all final changes at the time of sale. The customer must also sign
the Buyers Guide.
True
(True/False) A dealership must provide a Buyer's Guide in Spanish if the negotiations are
conducted on Spanish.
True
(True/False) If you conduct a used car transaction in Spanish, you are only required to give the
customer a copy of the Spanish Buyers Guide at the end of the transaction and not post the
buyers guide in Spanish on the vehicle?
2|Page
,False
A dealer voluntarily chooses NOT to sell a car as is. The dealer does NOT provide an express
written warranty. The window sticker must indicate the vehicle is sold with _______.
A. Implied warranties only
What is the penalty for violating the Used Car Rule in 2022?
D. $46,517
(True/False) If "certified" used cars are covered by a warranty issued by a third-party company
at no cost to the customer, this information is properly posted on the Buyers Guide by checking
two boxes. The NO DEALER WARRANTY box notes that the dealer is not providing the warranty -
and the OTHER USED VEHICLE WARRANTY box indicates that a warranty is provided by a third
party.
True
Which of the following would the FTC NOT consider a deceptive or unfair act or practice under
the Used Car Rule?
They are all considered
(True/False) The Credit Score Disclosure/Risk Based Pricing/Exception Notice does not have to
be given to everyone, only those you run credit on?
True
Which Act does Regulation B implement?
C. Equal Credit Opportunity Act
(True/False) Since Auto Dealers fall under the guidance of the FCRA and are considered
Creditors; the Risk Based Pricing and Adverse Action notices are a responsibility of the Dealer.
True
3|Page
, (True/False) Best practices dictate that the exception notice be signed by the customer and
retained in the customer's file.
True
(True/False)
As it relates to an applicant's spouse or former spouse, an F&I manager may ask:
1. Whether the spouse will be contractually liable for the installment sale contract (a co-buyer)
2. Whether the applicant is relying on the spouse's income to be creditworthy, even though the
spouse isn't signing the contract)
3. Whether the applicant resides in a community property state
4. Whether the applicant is relying on alimony, child support or separate maintenance payments
from the spouse or former spouse as a basis for repayment of the credit requested
True
What is the purpose of the Risk-Based Pricing Rule?
B. To alert higher-risk consumers that a creditor's decision could result in the consumer
receiving less favorable terms than those offered to other customers.
If a request for credit is rejected by a lender based on the terms originally submitted and the
customer and the lender (and dealer) all agree to a different set of terms, which of the following
should happen?
A. An adverse action notice need not be issued by any party because the customer and lender
(and dealer) accepted the new terms.
(True/False) In addition to the federal discrimination rules under Equal Credit Opportunity Act
and Regulation B, many states have similar regulations with more extensive lists of prohibited
practices.
True
4|Page
