Which statement is true regarding dealer and buyer contracts?

The statement that a dealer shall clearly indicate when a vehicle is sold "as is" is an important aspect of dealer and buyer contracts. When a vehicle is sold "as is," it means that the buyer accepts the vehicle in its current condition, without any guarantees or warranties from the dealer regarding its quality or performance. This practice protects both the dealer and the buyer by clearly establishing the terms of the sale and the responsibilities of each party.

Transparency is crucial in the sales process, particularly when dealing with used vehicles, which may have various degrees of wear and tear. By clearly marking a vehicle as "as is," the dealer ensures that the buyer is made aware that they are assuming any potential risks associated with the vehicle. This helps prevent misunderstandings or disputes over the vehicle’s condition after the sale, reinforcing ethical practices in sales.

In contrast, the other options present statements that either misrepresent typical practices in vehicle sales or are overly restrictive. For example, not all vehicles are sold with a guarantee, and while it is common for dealers to provide warranties, it is not a requirement for every transaction. Understanding these distinctions helps buyers make informed decisions while also clarifying the obligations of dealers in the sales process.