What must the advertised price of a motor vehicle include?

Study for the Motor Vehicle Industry License Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The advertised price of a motor vehicle must include the dealer's handling and prep charges because these costs are directly associated with preparing the vehicle for sale to the consumer. Properly informing potential buyers about the total cost of the vehicle helps ensure transparency in the sales process. Handling and prep charges can encompass various services, such as vehicle inspection, cleaning, or installation of accessories, which are incurred before the vehicle is delivered to the customer.

In contrast, state taxes, insurance fees, and delivery costs might not necessarily be included in the advertised price. State taxes can vary based on the buyer's location, and insurance fees depend on personal choices and circumstances. Delivery costs can also differ depending on the specific arrangements made between the dealer and the buyer. Thus, while all these costs may be relevant to the purchase decision, only the dealer's handling and prep charges are required to be included in the advertised price to provide a clear and complete representation of the vehicle's cost.

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