Practice question

What is a prelease agreement?

  1. An agreement to enter into a consumer lease of a motor vehicle that will be available and ready to be delivered to a customer at a later time
  2. An agreement to purchase a vehicle for cash
  3. An agreement to buy a vehicle without inspecting it
  4. An agreement that provides lease options for future cars

Answer: A — An agreement to enter into a consumer lease of a motor vehicle that will be available and ready to be delivered to a customer at a later time

A prelease agreement is an agreement between a customer and a dealership to enter into a consumer lease for a motor vehicle that will be available and ready to be delivered at a later time. Option B is incorrect because it mentions purchasing a vehicle for cash, which is not a lease agreement. Option C is incorrect because it mentions buying a vehicle without inspecting it, which is not a prelease agreement. Option D is incorrect because it mentions future cars, but a prelease agreement is specifically for a single vehicle that will be available in the near future.

Practice more: Wisconsin Motor Vehicle Salesperson Manual Practice Test →