Colorado Sales License Practice Test

When advertising terms of sale for a car, the phrase "with approved credit" is legally permissible for dealers to use. This phrase indicates that the sale is contingent upon the buyer qualifying for financing according to the lender's criteria. It provides transparency to potential buyers regarding the necessity of credit approval, allowing them to understand the terms under which they can finance a vehicle.

The other phrases are problematic for different reasons. "Cash transaction only" may imply very strict terms that could limit potential customers unfairly. "No credit check required" can be misleading because it suggests that a buyer can finance without scrutiny, which may not align with lenders' practices. Lastly, "guaranteed approval" could falsely indicate that any buyer will qualify for financing regardless of their creditworthiness, which is not typically true and can lead to unfair business practices. Therefore, using "with approved credit" is both compliant with legal standards and provides clarity to consumers.