Colorado Motor Vehicle Dealer Practice Test 2025 – Your All-In-One Guide to Exam Success!

In the context of deceptive trade practices, a false advertisement refers to misleading claims made about a product or service that can deceive consumers. Guaranteeing loan approval without any conditions can be considered a false advertisement because it suggests certainty in financing that may not actually be available. Financial approvals typically depend on several factors, including credit history and income verification, and implying guaranteed approval without mentioning these contingencies can mislead potential buyers.

On the other hand, providing clear vehicle history is a good practice that helps consumers make informed decisions, while asking for trade-ins before financing approval and selling a vehicle after documented pricing do not involve deceptive claims about the product or service itself. These practices are standard in vehicle transactions and do not misrepresent or lead consumers to erroneous conclusions. Thus, the guarantee of loan approval without conditions represents a clear case of deceptive advertising.