In terms of advertising, what is a mandatory disclosure for closed end credit sales?

When it comes to closed-end credit sales, it is essential for advertising to include clear and comprehensive details about the payment terms and conditions. This requirement is fundamental because consumers need to fully understand the financing structure and what their obligations will be when they enter into a credit agreement.

Payment terms and conditions encompass critical information such as the duration of the loan, interest rates, monthly payment amounts, the total cost of credit, and any fees associated with the financing. These details help potential buyers assess their financial commitments and make informed decisions.

In contrast, manufacturer’s name, dealer’s commission, and total cost of the vehicle, while relevant in certain contexts, do not offer the complete picture of the financial obligations that come with a closed-end credit sale. Ensuring transparency about payment terms and conditions protects both the consumer and the lender by enabling informed consent and preventing misunderstandings regarding financial responsibilities.