Colorado Sales License Practice Test

When advertising a lease of a motor vehicle, what is required?

1. Clearance sale information

2. Terms of repayment

3. Dealer personal background

4. Vehicle color and specifications

The correct answer is: Terms of repayment

When advertising a lease of a motor vehicle, it's necessary to include the terms of repayment. This is essential because transparency in financial obligations helps potential lessees understand their commitments before entering into a lease agreement. The terms of repayment typically outline the monthly payment amount, the duration of the lease, and any other fees that may be applicable, enabling consumers to make informed decisions and compare different leasing offers effectively. Clearance sale information is not generally relevant to lease advertisements; it pertains more to sales promotions rather than leasing terms. Dealer personal background is not a requirement for lease advertising—to consumers, the focus should primarily be on the financial and practical details of the lease itself. Additionally, while details about the vehicle's color and specifications are important for informing potential lessees about the vehicle, they do not encompass the critical financial terms that will govern the leasing arrangement. Thus, the emphasis on terms of repayment is key to compliance and consumer protection in vehicle leasing advertisements.