Which of the following statements about advertising is TRUE?

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 statement that dealers may use specific terms for financing is true because it reflects the regulatory framework governing automotive advertising. Dealers are permitted to include detailed financing terms in their advertisements as long as they comply with relevant laws and regulations, such as the Truth in Lending Act in the United States. This allows consumers to have a clear understanding of the financing options available to them, including interest rates, payment terms, and any fees associated with the financing.

When dealers provide specific financing terms, they must also ensure that the information is presented clearly, without misleading the consumer. Transparency in financing terms is crucial as it helps consumers make informed decisions when purchasing a vehicle. Advertisements conveying these details are valuable as they guide potential buyers in understanding the financial implications of their vehicle purchase.

The other statements do not align with advertising regulations; for instance, advertising does not guarantee sales, which is a common misconception. Additionally, dealers cannot incorrectly advertise prices as this would mislead consumers and potentially violate regulations related to fair advertising practices. Lastly, while advertisements must adhere to certain guidelines, they are not required to be completely free of terms, as this would overlook the necessity for important consumer information.

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