OMVIC Practice Test

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Dive into the OMVIC Practice Test and test your knowledge on laws, regulations, and ethical practices in the automotive industry. Perfect for aspiring dealers and salespersons to validate their expertise!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does an Initial Disclosure Statement (IDS) in a financing agreement include?

Only the interest rate
Only the term of the agreement
Cost of borrowing, interest rate, term of the agreement, and more
Dealer's personal guarantee only

The correct answer is: Cost of borrowing, interest rate, term of the agreement, and more

An Initial Disclosure Statement (IDS) in a financing agreement typically includes important information such as the cost of borrowing, interest rate, term of the agreement, and other details. Option A is incorrect because an IDS includes more than just the interest rate. Option B is incorrect because an IDS includes more than just the term of the agreement. Option D is incorrect because an IDS includes more than just the dealer's personal guarantee. Generally, an IDS is a comprehensive document that outlines all the terms and conditions of the financing agreement, ensuring that the borrower is fully aware of the details involved in the loan.