F&I IQ Test

Welcome to your F&I IQ Test

A lack of product knowledge may result in a dissatisfied customer and the hassles on the service aisle or in the sales manager’s office.

A lack of regulatory knowledge will result in lawsuits, TV exposes or government agency administrative action.

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1. An installment sale contract, at the time of consummation in the dealership, is between:
2. An extended warranty describes an aftermarket product purchased by a customer to reimburse
him or her for the cost of mechanical failures covered by the agreement after the factory
warranty expires and within the coverage period and other terms set forth in the contract.
3. With certain exceptions, if after purchasing GAP coverage, the customer does not have
property insurance (comprehensive and collision coverage) in force at the time of loss, then:
4. Under a dealership’s Red Flags Rule-mandated Identity Theft Prevention Program, if a red
flag discrepancy cannot be cleared at the time of delivery, as a courtesy, the vehicle can be
spot delivered, with the understanding that the sale has not been officially consummated.
5. If an installment finance buyer is quoted a 12% APR, and the customer asks whether it’s the
best rate available, the F&I practitioner should:
6. According to the Consumer Leasing Act / Reg. M, a lessor has the option of extending an
existing lease on a month-to-month basis without new disclosures as long as the maximum
term is six months or less.
7. For the F&I practitioner, the Equal Credit Opportunity Act / Reg. B prohibition of disparate
pricing practices means:
8. A customer is paying for a used car with four cashier’s checks, each drawn from a different
bank, in the amounts of $3,500, $3,000, $3,150 and $500. Since none of the checks
exceeds $10,000, an IRS 8300/FinCEN 8300 form should not be filed.
9. Under the Risk-Based Pricing Rule, dealers employing the NADA-negotiated Credit Score
Disclosure Exception Notice (Exception Notice, for short) must:
10. A customer buying a new car is paying $5,000 cash down and owes $7,500 more on the
vehicle being traded in than was allowed. The negative equity may be posted on the
installment sale agreement as:

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