50-State Guide · Updated 2026-08-20
Auto Loan Laws by State — Who Regulates Car Financing in All 50 States
Auto lending is licensed and supervised state by state, but the moves that actually save you money — getting pre-approved before the dealership, knowing your credit tier, and comparing a bank against a credit union — are the same everywhere. Below is the state-by-state regulator and rate-regulation picture for all 50 states, plus the current national benchmark rate and the one negotiating tactic that works in every state.
Current national benchmark auto loan rates
7.47%
48-Month New Car Loan Rate
7.14%
60-Month New Car Loan Rate
6.97%
72-Month New Car Loan Rate
National average for new-car loans at commercial banks — not a state-specific or personalized rate. Source: Federal Reserve G.19 Consumer Credit report (as of 2026-05-01). Data refreshed August 20, 2026.
How auto loan regulation works in the United States
There is no single national auto-loan rate cap. Each state's banking, financial-institutions, or securities department licenses the consumer lenders and auto-finance companies that operate within its borders and sets or enforces whatever rate rules apply there — some states run a general usury cap or consumer-credit code that reaches auto loans, others (Arizona is the clearest example) have repealed their general usury cap and leave licensed-lender pricing to the market. Title-loan companies are usually licensed and regulated separately, and carry much higher rates and repossession risk.
On top of the state layer, the federal Consumer Financial Protection Bureau supervises larger auto lenders nationwide and publishes free borrower tools. The practical takeaway is the same in all 50 states: the rate you're actually offered is driven by your credit tier and the lender's pricing far more than by your state's statutory cap — so the leverage is in shopping, not geography. ClearValue Lending does not originate auto loans; it helps borrowers compare financing options.
Auto lending regulator, by state
All 50 states. The regulator column links to each state's own licensing agency — use it to verify any lender's license or file a complaint. States with a dedicated ClearValue Lending state guide are linked in the first column.
| State | Regulator | How state rate regulation works |
|---|---|---|
| Alabama | Alabama State Banking Department | Alabama's State Banking Department regulates consumer lending including auto loans. Title-loan companies are licensed and regulated separately. Verify any lender's license at banking.alabama.gov before signing a loan agreement. |
| Alaska | Alaska Division of Banking and Securities | Alaska's Division of Banking and Securities oversees consumer lenders including auto finance companies. Given Alaska's smaller market, fewer local lenders compete for auto loans — national banks and credit unions operating in the state are primary options. Verify any lender at commerce.alaska.gov/web/dbs/. |
| Arizona | Arizona Department of Insurance and Financial Institutions | Arizona's DIFI licenses auto lenders and enforces consumer lending laws. Arizona repealed its general usury cap for consumer loans — auto loan rates are market-driven but lenders must hold valid DIFI licenses. Verify any lender at difi.az.gov. |
| Arkansas | Arkansas Securities Department | Arkansas has a constitutional interest rate cap (Amendment 89) that limits the rate on consumer loans. This applies to auto loans made by licensed consumer lenders — some high-rate lenders do not operate in Arkansas. Verify any lender at securities.arkansas.gov. |
| California | California Department of Financial Protection and Innovation | California's DFPI licenses auto lenders under the California Financing Law and enforces the Rees-Levering Motor Vehicle Sales and Finance Act, which provides strong consumer protections in auto transactions. Verify any lender's CFL license at dfpi.ca.gov before signing. |
| Colorado | Colorado Division of Banking | Colorado's Uniform Consumer Credit Code (UCCC) governs rate limits for consumer installment loans including auto loans. The Colorado Division of Banking enforces these rules — verify current limits at banking.colorado.gov or consumerfinance.gov. |
| Connecticut | Connecticut Department of Banking | The Connecticut Department of Banking regulates auto lenders operating in the state. Connecticut has usury and small-loan laws that cap consumer loan rates — verify current auto-loan rate limits at portal.ct.gov/dob or consumerfinance.gov. |
| Delaware | Delaware Office of the State Bank Commissioner | Delaware has historically permissive banking laws — many national auto lenders are chartered here. However, consumer borrowers are protected by CFPB rules regardless of lender charter location. Verify any lender's license at banking.delaware.gov. |
| Florida | Florida Office of Financial Regulation | The Florida Office of Financial Regulation (OFR) licenses consumer auto lenders under the Florida Consumer Finance Act. Rate limits apply to loans under specific thresholds — verify current caps at flofr.gov or consumerfinance.gov. |
| Georgia | Georgia Department of Banking and Finance | The Georgia Department of Banking and Finance enforces consumer lending laws including the Georgia Industrial Loan Act, which sets rate and fee limits for consumer installment loans including auto loans. Verify current caps at dbf.georgia.gov or consumerfinance.gov. |
| Hawaii | Hawaii Division of Financial Institutions | Hawaii's Division of Financial Institutions enforces consumer lending laws including usury limits on consumer loans. Hawaii has general usury provisions that apply to auto loans — verify current specifics at cca.hawaii.gov/dfi/ or consumerfinance.gov. |
| Idaho | Idaho Department of Finance | The Idaho Department of Finance licenses and supervises consumer auto lenders under Idaho's Consumer Credit Code. Rate limits for consumer installment loans apply — verify current caps at finance.idaho.gov or consumerfinance.gov. |
| Illinois | Illinois Department of Financial and Professional Regulation | The Illinois DFPR enforces consumer loan rate caps under the Illinois Consumer Installment Loan Act (CILA), which enacted a 36% APR cap on consumer loans (effective 2021). This cap applies broadly to consumer installment loans. Verify current rules and applicability to auto loans at idfpr.illinois.gov or consumerfinance.gov. |
| Indiana | Indiana Department of Financial Institutions | The Indiana Department of Financial Institutions (DFI) oversees consumer auto lending under Indiana's Uniform Consumer Credit Code (UCCC). Rate limits apply to consumer installment loans — verify current caps at in.gov/dfi or consumerfinance.gov. |
| Iowa | Iowa Division of Banking | The Iowa Division of Banking oversees consumer auto lenders. Iowa's consumer lending laws set rate limits for installment loans — verify current applicable caps at idob.iowa.gov or consumerfinance.gov. |
| Kansas | Kansas Office of the State Bank Commissioner | The Kansas Office of the State Bank Commissioner (OSBC) oversees consumer auto lenders. Kansas's Uniform Consumer Credit Code sets rate limits for consumer installment loans — verify current caps at osbc.ks.gov or consumerfinance.gov. |
| Kentucky | Kentucky Department of Financial Institutions | The Kentucky Department of Financial Institutions (DFI) licenses consumer auto lenders. Kentucky's consumer lending statutes set rate and fee limits for installment loans — verify current caps at kfi.ky.gov or consumerfinance.gov. |
| Louisiana | Louisiana Office of Financial Institutions | The Louisiana Office of Financial Institutions (OFI) licenses consumer auto lenders. Louisiana has consumer lending rate limits under its Consumer Credit Law — verify current applicable caps at ofi.la.gov or consumerfinance.gov. |
| Maine | Maine Bureau of Consumer Credit Protection | Maine's Bureau of Consumer Credit Protection enforces the Maine Consumer Credit Code, which sets rate limits for consumer installment loans including auto loans. Verify current applicable caps at maine.gov/pfr/consumercredit/ or consumerfinance.gov. |
| Maryland | Maryland Office of the Commissioner of Financial Regulation | Maryland's Commissioner of Financial Regulation oversees consumer auto lenders. Maryland's consumer lending laws set rate and fee limits for installment loans — verify current applicable caps at marylandfinancialregulation.gov or consumerfinance.gov. |
| Massachusetts | Massachusetts Division of Banks | The Massachusetts Division of Banks licenses consumer auto lenders. Massachusetts has usury laws and consumer lending rate limits — verify current applicable caps at mass.gov/orgs/division-of-banks or consumerfinance.gov. |
| Michigan | Michigan Department of Insurance and Financial Services | Michigan's Department of Insurance and Financial Services (DIFS) licenses consumer auto lenders. Michigan's consumer lending statutes set rate and fee limits for installment loans — verify current applicable caps at michigan.gov/difs or consumerfinance.gov. |
| Minnesota | Minnesota Department of Commerce | The Minnesota Department of Commerce licenses consumer auto lenders. Minnesota's consumer lending laws set rate limits for installment loans — verify current applicable caps at mn.gov/commerce/ or consumerfinance.gov. |
| Mississippi | Mississippi Department of Banking and Consumer Finance | The Mississippi Department of Banking and Consumer Finance (DBCF) licenses consumer auto lenders. Mississippi's consumer lending statutes set rate and fee limits — verify current applicable caps at dbcf.ms.gov or consumerfinance.gov. |
| Missouri | Missouri Division of Finance | The Missouri Division of Finance licenses consumer auto lenders. Missouri's consumer lending laws set rate limits for installment loans — verify current applicable caps at finance.mo.gov or consumerfinance.gov. |
| Montana | Montana Division of Banking and Financial Institutions | The Montana Division of Banking and Financial Institutions licenses consumer auto lenders. Montana's consumer lending laws set rate limits for installment loans — verify current applicable caps at banking.mt.gov or consumerfinance.gov. |
| Nebraska | Nebraska Department of Banking and Finance | The Nebraska Department of Banking and Finance licenses consumer auto lenders. Nebraska's consumer lending laws set rate limits for installment loans — verify current applicable caps at nebraska.gov/agencies/dbf/ or consumerfinance.gov. |
| Nevada | Nevada Financial Institutions Division | Nevada's Financial Institutions Division licenses consumer auto lenders. Nevada has historically had permissive consumer lending laws — rate limits are set by statute for specific loan categories, but Nevada does not have a broad usury cap for consumer loans above certain thresholds. Verify at fid.nv.gov or consumerfinance.gov. |
| New Hampshire | New Hampshire Banking Department | The New Hampshire Banking Department licenses consumer auto lenders. New Hampshire's consumer lending laws set rate limits for installment loans — verify current applicable caps at banking.nh.gov or consumerfinance.gov. |
| New Jersey | New Jersey Department of Banking and Insurance | The New Jersey Department of Banking and Insurance (DOBI) licenses consumer auto lenders. New Jersey's consumer lending laws set rate and fee limits for installment loans — verify current applicable caps at nj.gov/dobi/ or consumerfinance.gov. |
| New Mexico | New Mexico Financial Institutions Division | New Mexico's Financial Institutions Division licenses consumer auto lenders. New Mexico enacted a consumer loan rate cap (36% APR plus fees for consumer loans under $10,000, effective 2023). Verify current applicable caps and thresholds at rld.nm.gov/financial-institutions/ or consumerfinance.gov. |
| New York | New York Department of Financial Services | New York's Department of Financial Services (DFS) licenses consumer auto lenders. New York's Banking Law sets usury limits for consumer loans — verify current applicable caps at dfs.ny.gov or consumerfinance.gov. New York's DFS is one of the nation's most active financial regulators. |
| North Carolina | North Carolina Commissioner of Banks | North Carolina's Commissioner of Banks licenses consumer auto lenders. North Carolina's consumer lending laws set rate limits for installment loans. North Carolina also has strong consumer protection statutes via the NC Consumer Finance Act — verify current applicable caps at nccob.gov or consumerfinance.gov. |
| North Dakota | North Dakota Department of Financial Institutions | The North Dakota Department of Financial Institutions licenses consumer auto lenders. North Dakota's consumer lending laws set rate limits for installment loans — verify current applicable caps at nd.gov/dfi/ or consumerfinance.gov. |
| Ohio | Ohio Division of Financial Institutions | Ohio's Division of Financial Institutions licenses consumer auto lenders. Ohio's consumer lending laws set rate and fee limits for installment loans — verify current applicable caps at com.ohio.gov/divisions/financial-institutions or consumerfinance.gov. |
| Oklahoma | Oklahoma Department of Consumer Credit | Oklahoma's Department of Consumer Credit licenses consumer auto lenders. Oklahoma's Uniform Consumer Credit Code sets rate limits for consumer installment loans — verify current applicable caps at ok.gov/okdocc/ or consumerfinance.gov. |
| Oregon | Oregon Division of Financial Regulation | Oregon's Division of Financial Regulation licenses consumer auto lenders. Oregon's consumer lending laws set rate limits for installment loans — verify current applicable caps at dfr.oregon.gov or consumerfinance.gov. |
| Pennsylvania | Pennsylvania Department of Banking and Securities | Pennsylvania's Department of Banking and Securities licenses consumer auto lenders. Pennsylvania's consumer lending laws set rate limits for installment loans — verify current applicable caps at dobs.pa.gov or consumerfinance.gov. |
| Rhode Island | Rhode Island Department of Business Regulation — Banking Division | Rhode Island's Department of Business Regulation Banking Division licenses consumer auto lenders. Rhode Island's consumer lending laws set rate limits for installment loans — verify current applicable caps at dbr.ri.gov/banking or consumerfinance.gov. |
| South Carolina | South Carolina Office of the Commissioner of Banking | South Carolina's Office of the Commissioner of Banking licenses consumer auto lenders. South Carolina's consumer lending laws set rate limits for installment loans — verify current applicable caps at banking.sc.gov or consumerfinance.gov. |
| South Dakota | South Dakota Division of Banking | South Dakota's Division of Banking licenses consumer auto lenders. South Dakota has historically permissive lending laws — many national card issuers and lenders are headquartered here. For auto loans, consumer CFPB protections apply regardless of lender charter location. Verify any lender at dlr.sd.gov/banking/. |
| Tennessee | Tennessee Department of Financial Institutions | The Tennessee Department of Financial Institutions (TDFI) licenses consumer auto lenders. Tennessee's consumer lending laws set rate limits for installment loans — verify current applicable caps at tn.gov/tdfi/ or consumerfinance.gov. |
| Texas | Texas Office of Consumer Credit Commissioner | The Texas Office of Consumer Credit Commissioner (OCCC) licenses consumer auto lenders and regulates auto dealer financing under the Texas Finance Code. Texas sets rate limits for consumer installment loans by loan amount tier — verify current applicable limits at occc.texas.gov or consumerfinance.gov. |
| Utah | Utah Department of Financial Institutions | Utah's Department of Financial Institutions licenses consumer auto lenders. Utah has historically had limited usury restrictions on consumer loans — auto loan rates are market-determined for licensed lenders. Verify any lender at dfi.utah.gov and compare multiple offers. |
| Vermont | Vermont Department of Financial Regulation | Vermont's Department of Financial Regulation licenses consumer auto lenders. Vermont's consumer lending laws set rate limits for installment loans — verify current applicable caps at dfr.vermont.gov or consumerfinance.gov. |
| Virginia | Virginia Bureau of Financial Institutions | Virginia's Bureau of Financial Institutions licenses consumer auto lenders. Virginia's consumer lending laws set rate limits for consumer finance company loans — verify current applicable caps at scc.virginia.gov or consumerfinance.gov. |
| Washington | Washington State Department of Financial Institutions | Washington's Department of Financial Institutions (DFI) licenses consumer auto lenders under the Washington Consumer Loan Act. Washington sets rate limits for consumer installment loans — verify current applicable caps at dfi.wa.gov or consumerfinance.gov. |
| West Virginia | West Virginia Division of Financial Institutions | West Virginia's Division of Financial Institutions licenses consumer auto lenders. West Virginia's consumer lending laws set rate limits for installment loans — verify current applicable caps at dfi.wv.gov or consumerfinance.gov. |
| Wisconsin | Wisconsin Department of Financial Institutions | Wisconsin's Department of Financial Institutions licenses consumer auto lenders. Wisconsin's consumer lending laws set rate limits for installment loans — verify current applicable caps at wdfi.org or consumerfinance.gov. |
| Wyoming | Wyoming Division of Banking | Wyoming's Division of Banking licenses consumer auto lenders. Wyoming's consumer lending laws set rate limits for installment loans — verify current applicable caps at wyomingbankingdivision.wyo.gov or consumerfinance.gov. |
Source: each state's own banking / financial-institutions / securities regulator (linked above), cross-referenced with the CFPB's consumer auto-loan resources. Not legal advice — confirm any specific rate cap or license status with the state regulator before relying on it for a transaction.
The one tactic that works in every state: pre-approve before you shop
Whatever your state's rate rules, the borrower who gets pre-approved for a direct auto loan from a bank or credit union before walking onto a lot almost always pays less than the borrower who takes whatever the dealer's finance desk offers. Dealer-arranged financing is convenient, but the dealer can mark up the lender's approved rate — commonly by 1 to 2 percentage points — and pocket the spread. A pre-approval turns the financing conversation into a simple test: can the dealer beat the rate you already hold? If yes, take theirs; if no, use your pre-approval. Either way you win, and you never have to negotiate price and financing at the same time.
- Check your credit score first — it's free — so you know which rate tier to expect before any lender pulls it.
- Get a direct-lender pre-approval (bank, credit union, or a national online auto lender licensed in your state) so you have a real number to compare against.
- Verify any lender's license with your state regulator (linked in the table above) before sharing personal information.
- Read the loan agreement's rate, term, and any add-on products before signing — and use the CFPB's free auto-loan toolkit to understand the disclosures.
Auto loan laws — common questions
Who regulates auto loans in my state? +
Auto lending is regulated at the state level by each state's banking, financial-institutions, or securities department — the table on this page lists the specific agency and its website for all 50 states. Those agencies license consumer lenders (including auto-finance companies) and, in many states, title-loan companies separately. At the federal level, the Consumer Financial Protection Bureau (CFPB) supervises larger auto lenders and enforces fair-lending and disclosure rules that apply nationwide, regardless of your state.
Does my state cap auto loan interest rates? +
It varies a lot. Some states enforce a general usury or consumer-credit-code rate cap that reaches auto loans; others (Arizona, for example) have repealed their general usury cap, so licensed-lender rates are market-driven. Because the specific cap depends on the lender's license type, the loan size, and the vehicle (new vs. used), the honest answer for most borrowers is: rate limits are set by state law but the practical rate you're offered is driven by your credit tier and the lender's pricing — verify your state's current rule with the regulator linked in the table, and compare multiple offers.
Is it cheaper to finance a car through a bank or a dealership? +
Direct financing from a bank or credit union is typically cheaper than dealer-arranged financing. Dealers can mark up the interest rate the lender approves you for — commonly by 1 to 2 percentage points — and keep the difference. The single most effective move in any state is to get pre-approved for a direct auto loan before you visit the lot, so you walk in with a rate to beat. If the dealer beats your pre-approval, take theirs; if not, you already have the better deal.
What is the current national auto loan interest rate? +
As of 2026-05-01, the Federal Reserve's G.19 report put the average new-car loan rate at commercial banks at 7.14% for a 60-month term (6.97% for 72 months, 7.47% for 48 months). That's a national benchmark, not a personalized or state-specific rate — your actual APR depends on your credit score, the loan term, and whether the car is new or used.
What credit score do I need for an auto loan? +
Most banks and credit unions approve standard auto loans starting around 620 FICO, and several national online direct lenders will consider scores from about 580. The lowest APRs are reserved for borrowers at roughly 720 and above. Credit-score thresholds are set by lenders, not by state law, so they're broadly the same across all 50 states — what changes state to state is which lenders are licensed to operate and how much local competition there is.
How often is this page updated? +
This page was last reviewed 2026-08-20. The regulator and state-regulation details are cross-checked against each state's own agency; the national rate figures refresh automatically from the Federal Reserve G.19 series. State consumer-lending law can change — confirm any specific rate cap with the regulator linked in the table before relying on it for a transaction.
Sources & methodology
- State regulator names and licensing scope: each state's own banking, financial-institutions, or securities department (linked in the table above).
- National benchmark auto-loan rates: Federal Reserve G.19 Consumer Credit report (new-car loans, commercial banks), refreshed automatically.
- Borrower rights, dealer-markup mechanics, and disclosure guidance: Consumer Financial Protection Bureau — auto loans.
- No per-state APR, monthly payment, or approval-rate figure is fabricated on this page — rate regulation varies by state and lender, and this page states that honestly rather than inventing a single number per state.
Editorial disclaimer: Information on this page reflects the sources cited above as of August 20, 2026. State consumer-lending law changes — confirm current status before relying on this page for a transaction. All financing is subject to lender partner approval. ClearValue Lending is a business & personal financing platform — not a lender, broker, or financial advisor. Not legal, tax, or financial advice.
Ready to compare auto loan options?
Get pre-approved before you shop. Compare direct-lender offers so you walk into the dealership with a rate to beat — in any state.
Compare auto loan rates →