Final answer:
The required disclosures for advertising a closed-end credit sale of a motor vehicle include the down payment, terms of repayment, and the APR, while the tax rate is not required.
Step-by-step explanation:
When a dealer advertises a closed-end credit sale for a motor vehicle, certain information must be disclosed. These disclosures help consumers understand the full cost of the loan, including how long they will be paying it off and what their monthly payments will be.
According to the Truth in Lending Act (TILA), three of the required disclosures when advertising a vehicle loan include the amount or percentage of the down payment, terms of repayment, and the annual percentage rate (APR). However, the tax rate is not required to be disclosed in such advertisements.
The one item that is not required to be disclosed when a dealer is advertising a closed-end credit sale of a motor vehicle with a down payment amount, payment amount, number of payments, period of repayment, or amount of finance charge is the tax rate.