Automotive Finance & Insurance Professional
(AFIP) Final Exam Prep – Comprehensive
Compliance & Regulations Study Guide
Introduction:
This document provides a complete preparation overview for
the AFIP Final Exam, covering key topics in automotive finance
and insurance compliance. It includes detailed question-and-
answer style content on GAP, service contracts, leasing,
installment sales, advertising laws, privacy regulations, IRS
Form 8300, Red Flags Rule, OFAC, credit reporting, adverse
action notices, and federal regulatory requirements.
The material aligns with federal regulations such as Reg Z, Reg
M, ECOA, FCRA, UDAAP, and FTC compliance standards,
making it a thorough study guide for dealership F&I
professionals preparing for certification.
Exam Questions and Answers:
What determines what you can put on a service contract? ---
Correct Answer---How the vehicle has been used
When will GAP pay? ---Correct Answer----total loss
-stolen and 30 days after police report filed
,-cost of repairs are higher than the value of the unit
GAP insurance V.S GAP Waiver ---Correct Answer---GAP
Waiver waives the deficiency
GAP Insurance pays the deficiency
GAP will not pay for: ---Correct Answer---- Excess wear and
mileage on lease
- equipment added to unit after sold
NADA Voluntary Protection products program ---Correct
Answer---Everything is covered
how much does GAP pay for new/used vehicles: ---Correct
Answer----New: 125% - 150% of vehicle MSRP
- Used: 125% - 150% of the vehicles retail value
First Pencil Quote practices: ---Correct Answer---- Use a 60 -
90 day average for APR
- Must tell the customer that you are using an average and that
the payment may be higher or lower depending on credit
worthiness.
, total sale price ---Correct Answer----Total amount of payments
- the cash or cash equivalent of down payment
- the net trade in
- THIS IS ALWAYS THE HIGHEST NUMBER ON CONTRACT
at the time of consummation: ---Correct Answer---the
installment sale agreement is between the customer and dealer
during the repayment period of the installment, the customer:
---Correct Answer---owns the vehicle
The finance source accepting the assignment has a security
interest represented by? ---Correct Answer---a Lien
the markup or difference between the wholesale APR and retail
APR is to? ---Correct Answer---reimburse the dealer for the
cost of putting the deal on the books
you may have a negative down payment ---Correct Answer---
flase
(AFIP) Final Exam Prep – Comprehensive
Compliance & Regulations Study Guide
Introduction:
This document provides a complete preparation overview for
the AFIP Final Exam, covering key topics in automotive finance
and insurance compliance. It includes detailed question-and-
answer style content on GAP, service contracts, leasing,
installment sales, advertising laws, privacy regulations, IRS
Form 8300, Red Flags Rule, OFAC, credit reporting, adverse
action notices, and federal regulatory requirements.
The material aligns with federal regulations such as Reg Z, Reg
M, ECOA, FCRA, UDAAP, and FTC compliance standards,
making it a thorough study guide for dealership F&I
professionals preparing for certification.
Exam Questions and Answers:
What determines what you can put on a service contract? ---
Correct Answer---How the vehicle has been used
When will GAP pay? ---Correct Answer----total loss
-stolen and 30 days after police report filed
,-cost of repairs are higher than the value of the unit
GAP insurance V.S GAP Waiver ---Correct Answer---GAP
Waiver waives the deficiency
GAP Insurance pays the deficiency
GAP will not pay for: ---Correct Answer---- Excess wear and
mileage on lease
- equipment added to unit after sold
NADA Voluntary Protection products program ---Correct
Answer---Everything is covered
how much does GAP pay for new/used vehicles: ---Correct
Answer----New: 125% - 150% of vehicle MSRP
- Used: 125% - 150% of the vehicles retail value
First Pencil Quote practices: ---Correct Answer---- Use a 60 -
90 day average for APR
- Must tell the customer that you are using an average and that
the payment may be higher or lower depending on credit
worthiness.
, total sale price ---Correct Answer----Total amount of payments
- the cash or cash equivalent of down payment
- the net trade in
- THIS IS ALWAYS THE HIGHEST NUMBER ON CONTRACT
at the time of consummation: ---Correct Answer---the
installment sale agreement is between the customer and dealer
during the repayment period of the installment, the customer:
---Correct Answer---owns the vehicle
The finance source accepting the assignment has a security
interest represented by? ---Correct Answer---a Lien
the markup or difference between the wholesale APR and retail
APR is to? ---Correct Answer---reimburse the dealer for the
cost of putting the deal on the books
you may have a negative down payment ---Correct Answer---
flase
