What is the Maximum Interest Rate on a Connecticut Car Loan?
Many people buying cars are left to wonder whether they are getting a good deal. When financing a car, many of my clients wonder if there is a limit on the amount of interest a car dealership can charge. In Connecticut, there is.
In Connecticut, the amount of interest that a dealer is legally allowed to charge depends on the age of the car.
For New cars, the Annual Percentage Rate ("APR") is limited to 15% or less
For Used cars less than 2 years old, the maximum APR is 17%.
For Used cars more than 2 years old, the maximum APR is 19%.
For all other sales of consumer goods other than cars, the maximum interest rate is 18%.
However, just because a car dealer is legally allowed to charge you up to 19% interest, doesn't mean that they can or should. It is important to know what is on your credit report, and to know your FICO score before visiting the dealership. The better your credit score, the lower your APR will be, generally.