Car loan laws in every state
States decide how much a dealer contract can charge, what a doc fee may be, and what a lender must do before it takes a car back. In 19 of the 50 states and D.C., the law lets you catch up on missed payments and keep the car, either after a warning notice or by reinstating the loan after a repossession.
Map
- Right to catch up on missed payments and keep the car
- No general right to cure in state law
Every state, three rules
| State | Right to cure | Rate ceiling | Doc fee limit |
|---|---|---|---|
| Alabama | None; repossession may follow any default | None at $2,000+ financed; add-on limits below $2,000 | No cap in state law |
| Alaska | None; repossession may follow any default | No general cap on dealer contracts (rate as agreed) | No cap in state law |
| Arizona | None; repossession may follow any default | No general cap on dealer contracts (rate stated in the contract) | No cap; ads must say a document fee will be charged (2021) |
| Arkansas | None; repossession may follow any default | 17% a year, except federally insured banks based in Arkansas | $129 service and handling fee; must be posted and labeled as not required by law |
| California | Yes, after repossession: reinstate by paying the past-due amount and costs | No cap on simple-interest contracts over $2,500 financed | $85 (dealers in DMV e-registration), $70 otherwise; Vehicle Code §4456.5 |
| Colorado | Yes: 20 days after a notice, once 10 days late on a payment | 21% a year, or 36%/21%/15% tiers if greater (small balances) | No cap in state law; the fee is taxable |
| Connecticut | Yes: 15 days after repossession to reinstate, or by the date in a 10-day prior notice | 15% APR new; 17% used up to 2 model years old; 19% older | No cap; conveyance fee is negotiable, posted and shown separately (§14-62) |
| Delaware | None; repossession may follow a default without notice | No cap; the contract rate applies (5 Del. C. §2908) | No cap found in state law |
| Florida | None; repossession may follow a default without notice | $10 to $17 per $100 a year by vehicle class (about 17.27%–27.5% APR over 60 months) | No cap in state law; fee must be disclosed (§501.976) |
| Georgia | None before repossession | $10–$17 per $100 a year by class, only up to $5,000 financed; no cap above | No cap in state law; fee must be in the advertised price |
| Hawaii | None; repossession may follow a default without notice | 24% a year on credit sales under HRS ch. 476 | No cap found in state law |
| Idaho | None; default is limited to a missed payment or proven serious risk | No cap; the agreed rate applies (Idaho Code §28-42-201) | No cap found in state law; the fee is taxable |
| Illinois | None before repossession; reinstatement afterward only if 30% of the contract is paid | 36% APR (815 ILCS 375/21 via the Predatory Loan Prevention Act) | $300 base from 2020, adjusted yearly by CPI; notice required |
| Indiana | None; repossession may follow a default without notice | Greater of 36%/21%/15% tiers or 25% a year; 25% on most car balances | $261.72 from July 1, 2026; CPI-indexed; must be in the advertised price |
| Iowa | Yes: 20 days after a notice, once more than 10 days late | 21% on current-year new cars, 24% on recent models, 27% on older used cars | $180 per vehicle; must be in the advertised price and disclosed (not indexed) |
| Kansas | Yes: 20 days after a notice, once 10 days in default; one cure notice per loan | No general cap on dealer contracts; prepaid charge up to 2% or $300 | No cap in state law; the fee is taxable |
| Kentucky | None in state law; repossession may follow any default under the contract | $11, $13 or $15 add-on per $100 a year by class (about 18.8%–24.7% APR at 60 months) | No cap in state law |
| Louisiana | None; self-help repossession only after two missed payments in a row | 18% new, 24% recent, 27% or 33% on older used cars | $436 in 2026 (indexed yearly from a $425 base); written disclosure required |
| Maine | Yes: 14 days after a notice, once 10 days in default | 18% a year on motor vehicle credit sales, new or used | No cap in state law; the fee must be posted on the vehicle |
| Maryland | Yes, after repossession: 15 days to pay the past-due amount and resume the loan | 24% on new and recent used cars; 27% on older used cars | $800 since July 1, 2024; labeled not required by law (not indexed) |
| Massachusetts | Yes: 21 days after a notice sent at least 10 days after default | 21% APR on any new or used motor vehicle | No cap in state law; title preparation fee limited to $5; doc fee is taxable |
| Michigan | None in state law; the contract defines default | 25% a year on dealer installment contracts, any model year | Lesser of $280 or 5% of the cash price (set January 2025) |
| Minnesota | None in state law; the contract defines default | 18% (0–1 model years old), 19.75% (2–3 years), 23.25% (older) | Lesser of $350 or 10% of the sale, since July 1, 2025 |
| Mississippi | None in state law; the contract defines default | 18% new; 21% to 28.75% on used cars by age | $425 under Motor Vehicle Commission Regulation 8.1 |
| Missouri | Yes: 20 days after a notice, once 10 days in default | No cap on dealer contracts: any rate the buyer agrees to | $620.79 administrative fee cap for 2026, indexed each year |
| Montana | None in state law; the contract defines default | 36% a year on retail installment contracts, any vehicle age | No cap in state law |
| Nebraska | Yes: 20 days after a notice, once 10 days in default | 18% a year on installment sales contracts, any model year | No cap in state law |
| Nevada | None in state law; default limited to a missed payment or serious impairment | No general cap on dealer contracts: any amount agreed | No cap in state law |
| New Hampshire | Yes: until 21 days after a notice mailed 10+ days after default | No general cap on dealer contracts | No cap in state law |
| New Jersey | None; repossession may follow any default | Rate as agreed, within the 30% criminal usury cap | No dollar cap; each service itemized in writing |
| New Mexico | None; repossession may follow any default | No general cap on dealer contracts | No dollar cap; label limited to legally required paperwork |
| New York | Yes, after repossession for missed payments: pay the past-due amount and costs | No general cap on dealer contracts; rate as agreed | $175 for title and registration filing; optional, disclosed |
| North Carolina | None; repossession may follow any default | 21% (24% under $3,000) on newer cars; 26% at 4-5 years; 30% older | No cap; amount must be posted, advertised and itemized |
| North Dakota | None; repossession may follow any default | No general cap on dealer contracts | No cap in state law |
| Ohio | Yes, once: 20 days after repossession or 15 days after notice | 25% APR on dealer retail installment contracts | Lesser of 10% or a CPI-indexed amount that began at $250 |
| Oklahoma | None in state law; repossession may follow a default under the contract | 21% a year on most car balances; tiered rates up to 30% on small balances | No dollar cap found in the statutes we checked |
| Oregon | None in state law; repossession may follow a default under the contract | No general cap on dealer contracts; finance charge as agreed | $250 with an electronic integrator, $200 without (ORS 822.043) |
| Pennsylvania | None before repossession; 15 days to redeem after the notice of repossession | 18% on new and late-model used cars; 21% on older used cars | $490 electronic, $409 non-electronic (2026); adjusted yearly; must be posted |
| Rhode Island | Yes: at least 21 days after a notice, once 10 days in default; once per 12 months | 18% on retail installment contracts; licensed lenders: 21% or prime + 9% | No dollar cap found in the statutes we checked |
| South Carolina | Yes: 20 days after a notice, once 10 days in default; one notice per contract | 18% unless the creditor files and posts a higher rate schedule | Closing fee must be filed; up to $225 deemed approved; must be posted |
| South Dakota | Yes on dealer contracts: no remedies until an installment is 30 days past due | No general cap on dealer contracts; licensed money lenders' loans capped at 36% | No dollar cap; allowed for services actually rendered |
| Tennessee | None in state law; repossession may follow a default under the contract | No general cap on dealer contracts; industrial loan and thrift loans up to 36% | No cap in state law; must be itemized and disclosed (§55-17-114) |
| Texas | None; repossession may follow any default | 18% on 2024+ models; about 21%–27% APR on older ones (2026 chart) | $225 unless the dealer files a cost analysis with the OCCC |
| Utah | None; the Consumer Credit Code has no cure notice | No general cap on dealer contracts; the parties agree on the rate | No cap in state law; must be listed apart from state fees |
| Vermont | None found in state law; repossession may follow a default | 18% a year on current or prior model years; 20% on older vehicles | No cap found in state law; the fee is part of the taxable price |
| Virginia | None; repossession may follow any default | No cap on dealer installment credit; the rate is what you agree to | No cap; the processing fee must be posted and listed on the buyer's order |
| Washington | None; repossession may follow any default | No percentage cap; the service charge is the rate agreed in the contract | $200 per sale or lease; must be disclosed as negotiable |
| Washington, D.C. | Yes: no acceleration, suit or repossession for 30 days after a payment default | 21.5% (new) to 28.33% (oldest used) APR by vehicle class; $25 charge always allowed | No cap found in the D.C. Code |
| West Virginia | Yes: 10 days after a notice, once 5 days in default | 18% a year on the first $1,500 financed, 12% on the rest | Capped through the DMV; check the current cap with the DMV |
| Wisconsin | Yes: 15 days after a notice, once more than one payment is 10+ days late | No maximum finance charge on contracts made after October 31, 1984 | No dollar cap; DOT can reject an unreasonable service fee |
| Wyoming | None; the Consumer Credit Code has no cure notice | 36% on the first $1,000 and 21% on the rest (or 21% flat), up to $75,000 | No cap found in state law; the fee is part of the taxable price |
Short summaries. Each state page has the full rules, the statutes and the date we last checked them.