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AFIP Certification EXAM 2026/2027 ACTUAL
COMPLETE REAL VERIFIED EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ / BRAND NEW!!!
The difference between full or partial recourse and no
recourse assignments. - Answer-Essentially determines
the length of time, if any, the seller is responsible for the
actions of the buyer.
Warranty disclaimers do not apply to _______ warranties
on new or used vehicles to which that warranty still
applies. - Answer-Manufacturer's
A(n) _______ clause allows the creditor to declare the
entire outstanding balance due and payable. - Answer-
Acceleration
As recorded on an installment sale agreement, the total
sale price or deferred contract price would be the total of
the ________. - Answer--Payments
-Downpayment
-Net Trade-In
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Which is NOT listed as a mandated TILA box disclosure? -
Answer-Holder-in-Due Course Notice
In most states, the _______ is deemed to be part of the
purchase agreement. - Answer-Buyer's Guide
(True/False) Because the late charges that may be
imposed on an installment sale agreement are regulated
at the state level, the amount of the late charge is NOT a
required disclosure item. - Answer-False
At the time of consummation, an installment sale contract
is between the _______ and the _______. - Answer-
Customer, Dealer
The Truth in Lending Act and Reg. Z govern installment
sale transactions for vehicles purchased for what type(s)
of uses? - Answer-Personal, Family or Household
What is always the largest number on an installment sale
agreement? - Answer-The total sale price
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What does "force-placed" or "creditor-placed" mean? -
Answer-Allows the creditor to force place insurance - that
is, buy physical damage insurance to cover the creditor's
interest in the vehicle or the creditor's and the buyer's
interest in the vehicle if the buyer fails to do so.
(True/False) Installment sale agreements notify the
customer of the state's laws regarding repossession and
how (if applicable) the customer can redeem the vehicle or
reinstate the contract. - Answer-True
How are installment sale contracts regulated? - Answer-By
federal and state law
(True/False) If the vehicle is declared a total loss, the
creditor may claim the proceeds from the physical damage
insurance. - Answer-True
Closed-End Credit - Answer-A fixed amount of money
borrowed for a specified period of time, such as for home
mortgages, vehicle purchases and other types of
installment-based financing.
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Closed-End Credit Terminology (Customer Arranged) -
Answer-Transaction -- Loan
Document -- Note
Cost of Credit -- Interest
Cost of credit stated as -- APR
Parties to the agreement -- Lender- customer
Closed-End Credit Terminology (Dealer Arranged) -
Answer-Transaction -- Credit Sale
Document -- Installment Sale Agreement
Cost of Credit -- Finance Charge
Cost of credit stated as -- APR
Parties to the agreement -- Dealer- customer-assigned to
a lender or captive finance source
Precomputed Interest - Answer-The cost of credit (finance
charge) is calculated upfront when the agreement is
computed and repaid monthly over its term.
Simple Interest - Answer-The cost of credit (finance
charge) is calculated daily based on the outstanding
balance and paid monthly. For the customer, the only
AFIP Certification EXAM 2026/2027 ACTUAL
COMPLETE REAL VERIFIED EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ / BRAND NEW!!!
The difference between full or partial recourse and no
recourse assignments. - Answer-Essentially determines
the length of time, if any, the seller is responsible for the
actions of the buyer.
Warranty disclaimers do not apply to _______ warranties
on new or used vehicles to which that warranty still
applies. - Answer-Manufacturer's
A(n) _______ clause allows the creditor to declare the
entire outstanding balance due and payable. - Answer-
Acceleration
As recorded on an installment sale agreement, the total
sale price or deferred contract price would be the total of
the ________. - Answer--Payments
-Downpayment
-Net Trade-In
,2|Page
Which is NOT listed as a mandated TILA box disclosure? -
Answer-Holder-in-Due Course Notice
In most states, the _______ is deemed to be part of the
purchase agreement. - Answer-Buyer's Guide
(True/False) Because the late charges that may be
imposed on an installment sale agreement are regulated
at the state level, the amount of the late charge is NOT a
required disclosure item. - Answer-False
At the time of consummation, an installment sale contract
is between the _______ and the _______. - Answer-
Customer, Dealer
The Truth in Lending Act and Reg. Z govern installment
sale transactions for vehicles purchased for what type(s)
of uses? - Answer-Personal, Family or Household
What is always the largest number on an installment sale
agreement? - Answer-The total sale price
,3|Page
What does "force-placed" or "creditor-placed" mean? -
Answer-Allows the creditor to force place insurance - that
is, buy physical damage insurance to cover the creditor's
interest in the vehicle or the creditor's and the buyer's
interest in the vehicle if the buyer fails to do so.
(True/False) Installment sale agreements notify the
customer of the state's laws regarding repossession and
how (if applicable) the customer can redeem the vehicle or
reinstate the contract. - Answer-True
How are installment sale contracts regulated? - Answer-By
federal and state law
(True/False) If the vehicle is declared a total loss, the
creditor may claim the proceeds from the physical damage
insurance. - Answer-True
Closed-End Credit - Answer-A fixed amount of money
borrowed for a specified period of time, such as for home
mortgages, vehicle purchases and other types of
installment-based financing.
, 4|Page
Closed-End Credit Terminology (Customer Arranged) -
Answer-Transaction -- Loan
Document -- Note
Cost of Credit -- Interest
Cost of credit stated as -- APR
Parties to the agreement -- Lender- customer
Closed-End Credit Terminology (Dealer Arranged) -
Answer-Transaction -- Credit Sale
Document -- Installment Sale Agreement
Cost of Credit -- Finance Charge
Cost of credit stated as -- APR
Parties to the agreement -- Dealer- customer-assigned to
a lender or captive finance source
Precomputed Interest - Answer-The cost of credit (finance
charge) is calculated upfront when the agreement is
computed and repaid monthly over its term.
Simple Interest - Answer-The cost of credit (finance
charge) is calculated daily based on the outstanding
balance and paid monthly. For the customer, the only
