State rules
Arkansas auto loan rules
Arkansas has 500 Census places covered on AutoLoanable, with a combined estimated population of 2,062,567. Vehicle financing in Arkansas is governed by state law — the interest-rate caps, title-lending rules, sales-finance licensing and the regulator that oversees them. The sourced figures below apply to every car loan made to a borrower in the state.
The lowest rates are only available to the most qualified applicants.
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Key rules for car buyers in Arkansas
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 17% per annum for loans not made by or to governmental units or by federally insured depository institutions (Amendment 89, effective January 1, 2011) Source says: "shall not exceed seventeen percent (17%) per annum". |
Arkansas Legislature — Arkansas Constitution, Amendment 89, § 3 (proposed by H.J.R. 1004 of 2009) as of 2026-09-17 |
| Vehicle title loan status | No title-loan licensing or authorization; the Arkansas Constitution caps interest at 17% per annum and voids usurious contracts as to principal and interest, effectively prohibiting high-cost title lending. Source says: "The maximum lawful rate of interest on loans or contracts not described in Sections 1 and 2 shall not exceed seventeen percent (17%) per annum." License category: None (no title-loan authorization; 17% constitutional usury cap). |
Arkansas General Assembly — H.J.R. 1004 (2009), adopted as Ark. Const. amend. 89 as of 2026-09-17 |
| Sales finance / installment lender licensing | See the latest published figure value_text left null: the State Bank Department does not publish a consumer small-loan license rate schedule that could be verified; storefront payday lending has been eliminated (see Payday lending status). See the linked regulator page for the licensee categories it supervises. No separate motor-vehicle retail installment sales act; general law applies (Arkansas Interest and Usury statutes, plus the Motor Vehicle Commission Act for dealer sales) (Ark. Code Ann. §§ 4-57-101 to 4-57-105; Ark. Const. amend. 89; Ark. Code Ann. § 23-112-101 et seq.). |
Arkansas State Bank Department as of 2026-09-17 |
| State lending regulator | Arkansas State Bank Department Source says: "The Department is charged with regulating state-chartered commercial banks with main offices in Arkansas". |
Arkansas State Bank Department as of 2026-09-17 |
| Sales tax on vehicle purchases | 6.5% state sales and use tax rate; local city and county rates are additional. Source says: "State Sales and Use Tax – 07/01/2013 – 6.500%" |
Arkansas Department of Finance and Administration — State Sales & Use Tax Rates as of 2026-09-17 |
How to use these rules
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Check the ceiling before you compare offers
If a quoted APR looks extreme, compare it against the Arkansas cap above — and note that a specific statutory exemption can apply to a particular product.
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Verify the lender is licensed
Use the regulator named in the table to confirm the lender or sales-finance company may legally serve borrowers in the state.
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Know what is secured against your car
A vehicle title loan is secured by the car itself. If the state permits it, understand the repossession terms before you sign anything.
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Budget for tax and fees separately
Sales tax and title fees are financed along with the car, so they raise the amount you borrow — and therefore the interest you pay on them.
Cities in Arkansas
We cover 500 Census places in Arkansas.