Practice question

When can the dealer cancel the prelease agreement?

  1. If the customer's credit is not approved by the sales finance company loaning money for the lease
  2. If the customer changes their mind
  3. If the vehicle is available earlier than expected
  4. If the customer requests additional features

Answer: A — If the customer's credit is not approved by the sales finance company loaning money for the lease

Car dealerships typically have a prelease agreement with a sales finance company that allows customers to lease a vehicle. This agreement is contingent upon the customer's credit being approved by the sales finance company. Therefore, if the customer's credit is not approved, the dealership is no longer able to offer the prelease agreement and may need to cancel it. This option is the only one that directly relates to the agreement being nullified due to circumstances outside of the customer's control. Options B, C, and D would not cause the prelease agreement to be cancelled by the dealer.

Practice more: Wisconsin Motor Vehicle Salesperson Manual Practice Test →