When must full disclosure of credit terms be made?

Full disclosure of credit terms must be made before a sale is consummated to ensure that the buyer is fully informed of the financial obligations they are undertaking. This is a crucial practice in car sales and financing because it protects consumers by allowing them to understand the terms and conditions associated with their purchase, including interest rates, monthly payments, and any potential fees. By providing this information upfront, the dealership fosters transparency and helps the buyer make an informed decision regarding their purchase.

Making this disclosure after the sale is finalized, at the time of vehicle delivery, or only when requested by the buyer would not provide the level of transparency necessary for a responsible sales process. Such practices could lead to misunderstandings about financial obligations, potentially resulting in dissatisfaction or disputes after the fact. By ensuring that credit terms are disclosed prior to the consummation of the sale, buyers can better assess their financial situation and feel more confident in their decision to proceed with the transaction.