Truth In Lending

The following information is offered to assist the dealer in complying with the Motor Vehicle Dealer Advertising Practices and Enforcement Regulations.

It is the dealer's responsibility to become familiar with all provisions of the Federal Truth in Lending Act (Regulation Z) and to ensure dealership advertisements are in compliance with these Federal directives.

If one of the following "Trigger Terms" is stated in the ad:

  1. amount or percentage of down payment ("0 Down" or "No Money Down" is not considered a trigger term)
  2. amount of payment
  3. number of payments
  4. period of repayment
  5. amount of finance charge (in dollars)


Then the following required disclosures are needed:

  1. amount or percentage of down payment
  2. terms of repayment (e.g. number amount and timing of payments)
  3. APR 
    (amount or % down) , (# of months) payments at ($) per (month,week,etc.) at (%) APR.

*APR by itself is not considered a trigger term but is a requirement in the disclosure

**All Disclosures must be clear and conspicuous


For further information and/or questions, contact: 

Federal Trade Commission
6th & Pennsylvania Avenue, N.W.
Washington, DC 20580
(202) 326-2222