AFIP Certification Exam Questions with Correct Verified Solutions | 100% Guaranteed Pass | Latest Updated 2025/2026.

AFIP Certification Exam Questions with Correct Verified Solutions | 100% Guaranteed Pass | Latest Updated 2025/2026. What is a contract? - ANS A contract is an agreement involving a promise or set of promises that the law enforces or protects. What is always the largest number on an installment sale agreement? - ANS The total sale price What does the following describe? "The amount determined at the inception of the lease to be the value of the vehicle at the end of the agreement." This figure is subtracted from the adjusted capitalized cost to determine the amount of depreciation in the value of the vehicle that will occur over the term of the lease. - ANS Residual Value 2 AFIP AFIP Certification While state laws may impose different standards, the dealer must keep records relating to the IRS Reporting Rule (copies of the Form 8300 and supporting documents) on file for _______ years. - ANS 5 Willful violations of the FCRA can also expose dealerships to liability for: - ANS a. Punitive damages. b. Court costs. c. Attorney's fees. Willful violations of the FCRA can expose dealerships to liability for: - ANS a. Actual damages suffered by consumers. "Preservation of Consumers' Claims and Defences" is now known as the ______. - ANS The Holder-in-Due-Course Rule Who is regulated under the Do-Not-Fax rules? - ANS -The FCC's faxing regulations apply to all entities sending faxed ads. -These regulations apply equally to faxes sent across the street, across the country, and to faxes send to individual consumers or large corporations. The difference between a warranty and a vehicle service contract - ANS The warranty is included as part of the product - it comes with it at no additional charge 3 AFIP AFIP Certification (GA State Laws): Add-On Products - May a creditor sell and finance optional add on products, such as satellite radio or an in-vehicle security, communications, and diagnostics system ("MET Product"), and the monthly services (paid in advance) that are related to the sale of those products? May the creditor disclose the price of those products as part of the cash price of the motor vehicle, or must the creditor separately list the cost in the itemization of amount financed in the retail instalment sale contract? How does the state classify such products/services: insurance or other than insurance? - ANS Yes. A creditor may sell and finance add-on products and the monthly services that may be paid in advance, such as for satellite radio or MET Products. _______ are individuals, companies or other entities identified as being owned by, controlled by, or acting for or on behalf of, the governments of certain target countries, or associated with international drug trafficking, terrorism or some other illegal activity. - ANS Specially Designated Nationals Provided there is no indemnification for loss feature, the add-on device will not be considered insurance. 4 AFIP AFIP Certification (GA State Laws): Antitheft Products - May a creditor sell and finance optional anti-theft products, such as a stolen vehicle recovery system or vehicle tracking devices, etch, alarms, and other theft deterrent type devices? May the creditor disclose the price of those products as part of the cash price of the motor vehicle, or must the creditor separately list the cost in the itemization of amount financed in the retail instalment sale contract? How does the state classify such devices: insurance or other than insurance? - ANS Yes, a creditor may sell and finance anti-theft products. Charges for anti-theft products that are not considered insurance may be included within the cash sale price of the vehicle. Depending on the features, an anti-theft product may be considered insurance. (GA State Laws): Are any state specific co-signer notices required? - ANS No. (GA State Laws): Are balloon payments permitted? Is there a requirement that it be refinanced? - ANS Balloon payments are permitted. There is no requirement that a balloon payment be refinanced. (GA State Laws): Are document preparation fees permitted? - ANS Yes. However, if they are only charged in credit sales (and not in cash sales) it should be treated as part of the finance charge and will be subject to rebate upon prepayment. (GA State Laws): Are lien filing or recording fees permitted? - ANS Yes. 5 AFIP AFIP Certification (GA State Laws): Are refunds of optional credit insurance premiums required upon prepayment or default and acceleration of the contract? If so, who is required to make the refund (e.g. original creditor, holder, or insurance company)? If state law requires the holder to provide a refund, does state law provide an applicable refund methodology (pro rata, 78s, actuarial, e.g.)? - ANS Yes, if received by the holder, the holder must credit the amount to the final maturing instalment. No specific methodology is required, but the refund method must be set forth in the group policy, rider, individual policy and certificate of insurance.