Which of the following is true regarding advertising of trade-in vehicles?

Advertising of trade-in vehicles must be clearly marked as a trade-in to provide transparency and clarity to potential buyers. This requirement aims to ensure that consumers are fully aware that the vehicle being advertised was previously owned and traded in, as this information can affect their purchasing decisions. Clearly marking vehicles as trade-ins helps communicate the condition and history of the vehicle, thereby supporting honest marketing practices.

While there may be other considerations regarding trade-ins, such as setting prices or promotions, the essential point is that the vehicle's status as a trade-in should be explicitly conveyed in advertisements. This practice not only fosters trust but also aligns with regulatory standards designed to protect consumers in the vehicle market.