AFIP | F&I Q Test

Lawsuits and TV exposés may be prompted by poor customer service or a lack of product knowledge. Any action taken against the dealer, however, is always based on specific violations of the state and federal laws that govern the F&I process.

Test your mastery of the rules by taking this 10-Question Quick Quiz drawn from the regulations addressed in the NADA-recommended AFIP Certification Program. Or if you prefer, you may also download the PDF version.

Question 1

An installment sale agreement, at the time it is consummated in the dealership, is between:

	a)	the customer and the lending institution that has agreed to the terms of the transaction.
	b)	the customer and the selling dealer.

Question 2

An extended warranty describes the aftermarket product purchased by a customer to reimburse him or her for the cost of mechanical failures that occur after the factory warranty expires and within the coverage period limitations set forth in the contract.

	a)	True
	b)	False

Question 3

If after purchasing GAP coverage, the customer does not have property insurance (comprehensive and collision coverage) in force at the time of loss, then:

	a)	the terms of the GAP coverage have been violated, and no money will be paid.
	b)	the money paid to the dealer for the GAP coverage will be refunded to the customer.
	c)	depending on the provisions of the coverage, the NADA Used Car Guide retail value or other authoritative source will be used to determine the GAP.

Question 4

According to the provisions of the Red Flags Rule, if a red flag discrepancy has not been fully cleared by the customer and affirmed by management, the vehicle can be Spot Delivered, but the sale cannot be officially consummated.

	a)	True
	b)	False

Question 5

After being quoted a 12% APR, if the customer asks whether that is the best rate available, the F&I practitioner should:

	a)	state that it is the best rate available based on the customer’s credit score
	b)	state that it is the best rate the dealership currently has available.
	c)	attempt to avoid answering the question.
	d)	a or b, depending on the situation.
	e)	none of the above.

Question 6

According to the Consumer Lease Act (Regulation M), a lessee may extend an existing lease on a month- to-month basis so long as the maximum term is six months or less.

	a)	True
	b)	False

Question 7

The F&I practitioner completed the installment sale agreement and disclosed it to the customer. The customer refuses to sign the contract but wants to take a copy with him. The F&I manager should:

	a)	give the customer a copy of the contract.
	b)	politely decline the request, stating that the customer is only entitled to a copy of a contract containing the terms of the transaction if it is signed by the customer. In some cases, you may state that the request is in violation of dealer policy.

Question 8

A customer wishes to pay for a used car with four cashier’s checks drawn on four differentbanks in the amounts of $7,500, $6,800, $3,000, and $8,300. Since none of the checks exceed $10,000, the F&I person need not complete IRS / FinCEN Form 8300.

	a)	True
	b)	False

Question 9

If an F&I practitioner leaves a number of deal jackets unattended in an unlocked office, it would be a violation of:

	a)	the Consumer Information Protection Act.
	b)	the Truth in Lending Act - Regulation Z.
	c)	the Safeguards Rule.
	d)	a and b.
	e)	a and c.

Question 10

A customer buying a new car is paying $5,000 cash down and owes $7,500 more on the trade-in than was allowed. In this case, the postings on the installment sale agreement can be:

	a)	a downpayment of zero and an additional amount financed of $2,500.
	b)	a downpayment of $5,000 and an additional amount financed of $7,500.
	c)	an increase in the selling price of the vehicle and the trade allowance in the amounts of $7,500 for each
	d)	a and b.
	e)	all of the above.

	Basic Certified
	Senior Certified
	Dealership Employee
	General Agent Employee
	Industry Member Employee
	Media Employee
	Northwood or Other Student
	Northwood or Other Professor
	Association Employee