If an advertisement contains the term "down payment," what must also be included?

Prepare for the Colorado Motor Vehicle Salesperson Exam. Study with flashcards and multiple choice questions, each question includes hints and explanations. Ensure you're ready to excel!

When an advertisement for a vehicle includes the term "down payment," it is required by law to provide certain essential details to ensure transparency and avoid misleading potential buyers. Specifically, when mentioning a down payment, the number of payments required for the financing arrangement must also be disclosed. This helps consumers understand the full scope of the financing terms and commitments involved in purchasing the vehicle.

Disclosing the payment structure in conjunction with the down payment provides potential buyers with valuable information about the total cost they will incur over time in relation to their initial payment. This requirement aligns with regulations aimed at protecting consumers in the auto sales environment, ensuring that they are fully informed before making purchasing decisions.

While other options may contain relevant information, such as the overall vehicle price or total interest amount, they are not mandatory inclusions when specifically referencing a down payment in advertising.

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