COLORADO CAR SALES MASTERY 2024 NEWEST EXAM
ACTUAL 300 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT) /ALREADY GRADED A+
Annual Percentage Rate (APR) - ANSWER: Also called a finance rate, this is the
interest rate on a loan; a percentage of the amount borrowed that a lender charges
annually for the use of its money.
Acquisition Fee - ANSWER: A fee charged by the dealer for initiating a lease;
ostensibly covers the costs of processing the lease—credit reports and insurance
verification, for example—but is in actuality pure profit. Although many fees
associated with a lease are negotiable, this one is generally unavoidable.
Balloon Payment/Balloon Loan - ANSWER: A loan that pays off only a portion of a
vehicle during its term and demands a large sum—the "balloon"—to be paid at the
end of the loan.
Make - ANSWER: Refers to the brand (or nameplate) of vehicle ex. Ford, Honda,
Chrysler, Toyota, etc.
Bump - ANSWER: The difference between the rate a dealer pays for financing on a
loan or a lease (called the Buy Rate) and the rate at which they sell the financing to
you (the Sell Rate)—typically around one percent. Dealers generally don't disclose
this bump, so do your homework on the actual rate being offered by the
manufacturer or finance company and negotiate to reduce or eliminate the bump.
Also known as a Spread.
Model - ANSWER: Refers to a specific vehicle name within a make ex. Ford
MUSTANG, Honda ACCORD, Toyota CAMRY
Manufacturer - ANSWER: The builder of a vehicle and many consist of one or several
makes of vehicle ex. Ford (Ford, Lincoln), General Motors (Chevrolet, Buick, GMC,
Cadillac), Toyota (Toyota, Lexus), Volkswagen (Volkswagen, Porsche, Audi,
Lamborghini, Bugatti, Bently)
MSRP - ANSWER: Manufacturer's suggested retail price also known as "retail price"
or "window sticker". This is what is listed for the basic price and all options on the
Monroney Sticker
Price - ANSWER: Represents the price you pay for the vehicle when all is said and
done, but there is no hard and fast rule
Processing Fee - ANSWER: A fee a dealer may use at their discretion. It does not
reflect any particular cost & depending on what state you're in, may have mandated
upper limit
, Protection Package - ANSWER: Another set of forced items, like an appearance
package, although the mix of items may vary (or be the same) and can include:
-VIN (vehicle identification number) etching on the engine compartment
-Trunk Tray (basically a floor mat for your trunk)
-Rust proofing
-Paint Sealant
-Vehicle undercoating
-Fabric protection
Qoute - ANSWER: When a dealer gives an amount they'd offer for a vehicle. This may
not include all the costs you'd ultimately have to pay (i.e. state fees such as tax, tags,
and title, or the destination charge, or other miscellaneous regional fees or
mandatory add-ons from the dealer)
Style (Trim) - ANSWER: Refers to the trim or equipment level of a particular model of
vehicle ex. EX, Limited, Supercab
VIN - ANSWER: Vehicle Identification Number, a 17-digit number identifying your
specific vehicle. Each VIN is unique and is like a social sexurity number for your
vehicle. With a VIN, you have the ability to look up a vehicle's recorded history
through sites like Carfax, although this should not be necessary when buying a new
vehicle.
Floor Planning - ANSWER: The financing cost a dealer incurs on a new vehicle from
the time they recieve it from the manufacturer to the time it is sold to the first buyer
Appearance Package - ANSWER: A set of mandatory items dealers may put on their
vehicles after they arrive from the manufacturer. They tend to be external bolt on
items (usually removable). Some items might include:
-Floor mats (either carpeted or all-weather rubber versions)
- Mud guards (also called Splash guards)
- Wheel locks
- Fender well trim (also called wheel lip moldings)
-Door edge guards
-Pinstripes (either stickon or painted)
They can sometimes be removed, or included free of charge as a negotiating tool.
They are a way of padding the dealer's profit margins, as they are usually very
overpriced.
Buyer's Order - ANSWER: A summary of what both parties have agreed to thus far. It
is NOT the final sales contract committing you to buy the vehicle. The buyer order
should list the agreed-upon price for the vehicle and a breakdown description of the
exact make, model, style, color, and options on that vehicle, as well as the vehicle
VIN of the vehicle in question, if one has been assigned to the vehicle already.
ACTUAL 300 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT) /ALREADY GRADED A+
Annual Percentage Rate (APR) - ANSWER: Also called a finance rate, this is the
interest rate on a loan; a percentage of the amount borrowed that a lender charges
annually for the use of its money.
Acquisition Fee - ANSWER: A fee charged by the dealer for initiating a lease;
ostensibly covers the costs of processing the lease—credit reports and insurance
verification, for example—but is in actuality pure profit. Although many fees
associated with a lease are negotiable, this one is generally unavoidable.
Balloon Payment/Balloon Loan - ANSWER: A loan that pays off only a portion of a
vehicle during its term and demands a large sum—the "balloon"—to be paid at the
end of the loan.
Make - ANSWER: Refers to the brand (or nameplate) of vehicle ex. Ford, Honda,
Chrysler, Toyota, etc.
Bump - ANSWER: The difference between the rate a dealer pays for financing on a
loan or a lease (called the Buy Rate) and the rate at which they sell the financing to
you (the Sell Rate)—typically around one percent. Dealers generally don't disclose
this bump, so do your homework on the actual rate being offered by the
manufacturer or finance company and negotiate to reduce or eliminate the bump.
Also known as a Spread.
Model - ANSWER: Refers to a specific vehicle name within a make ex. Ford
MUSTANG, Honda ACCORD, Toyota CAMRY
Manufacturer - ANSWER: The builder of a vehicle and many consist of one or several
makes of vehicle ex. Ford (Ford, Lincoln), General Motors (Chevrolet, Buick, GMC,
Cadillac), Toyota (Toyota, Lexus), Volkswagen (Volkswagen, Porsche, Audi,
Lamborghini, Bugatti, Bently)
MSRP - ANSWER: Manufacturer's suggested retail price also known as "retail price"
or "window sticker". This is what is listed for the basic price and all options on the
Monroney Sticker
Price - ANSWER: Represents the price you pay for the vehicle when all is said and
done, but there is no hard and fast rule
Processing Fee - ANSWER: A fee a dealer may use at their discretion. It does not
reflect any particular cost & depending on what state you're in, may have mandated
upper limit
, Protection Package - ANSWER: Another set of forced items, like an appearance
package, although the mix of items may vary (or be the same) and can include:
-VIN (vehicle identification number) etching on the engine compartment
-Trunk Tray (basically a floor mat for your trunk)
-Rust proofing
-Paint Sealant
-Vehicle undercoating
-Fabric protection
Qoute - ANSWER: When a dealer gives an amount they'd offer for a vehicle. This may
not include all the costs you'd ultimately have to pay (i.e. state fees such as tax, tags,
and title, or the destination charge, or other miscellaneous regional fees or
mandatory add-ons from the dealer)
Style (Trim) - ANSWER: Refers to the trim or equipment level of a particular model of
vehicle ex. EX, Limited, Supercab
VIN - ANSWER: Vehicle Identification Number, a 17-digit number identifying your
specific vehicle. Each VIN is unique and is like a social sexurity number for your
vehicle. With a VIN, you have the ability to look up a vehicle's recorded history
through sites like Carfax, although this should not be necessary when buying a new
vehicle.
Floor Planning - ANSWER: The financing cost a dealer incurs on a new vehicle from
the time they recieve it from the manufacturer to the time it is sold to the first buyer
Appearance Package - ANSWER: A set of mandatory items dealers may put on their
vehicles after they arrive from the manufacturer. They tend to be external bolt on
items (usually removable). Some items might include:
-Floor mats (either carpeted or all-weather rubber versions)
- Mud guards (also called Splash guards)
- Wheel locks
- Fender well trim (also called wheel lip moldings)
-Door edge guards
-Pinstripes (either stickon or painted)
They can sometimes be removed, or included free of charge as a negotiating tool.
They are a way of padding the dealer's profit margins, as they are usually very
overpriced.
Buyer's Order - ANSWER: A summary of what both parties have agreed to thus far. It
is NOT the final sales contract committing you to buy the vehicle. The buyer order
should list the agreed-upon price for the vehicle and a breakdown description of the
exact make, model, style, color, and options on that vehicle, as well as the vehicle
VIN of the vehicle in question, if one has been assigned to the vehicle already.
