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State rules

Colorado auto loan rules

Colorado has 270 Census places covered on AutoLoanable, with a combined estimated population of 4,391,096. Vehicle financing in Colorado 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.

By the AutoLoanable Editorial Team · Last updated 2026-09-17

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12% cap state usury cap
2.9% statewide state vehicle sales tax
Permitted vehicle title loans
Colorado Attorney General's… state regulator

Key rules for car buyers in Colorado

RuleDetailSource
Maximum legal interest rate (usury cap) UCCC finance-charge ceilings: 12% per year on non-supervised consumer loans; supervised loans 36% on the first $1,000, 21% on $1,000–$3,000, 15% above $3,000 (or 21% flat); 21% on revolving accounts
Source says: "not exceeding twelve percent per year on the unpaid balance of the amount financed"; "Thirty-six percent per year on that part of the unpaid balances of the amount financed that is one thousand dollars or less"; "Twenty-one percent per year on the unpaid balances of the amount financed".		 Colorado General Assembly — C.R.S. § 5-2-201 (Colorado Revised Statutes 2024, Title 5)
as of 2026-09-17
Vehicle title loan status Title-secured consumer loans may be made by licensed supervised lenders; finance charges are capped at the greater of the tiered rates (36% on the first $1,000, 21% on $1,000-$3,000, 15% above $3,000) or 21% per year.
Source says: "a supervised lender or seller may contract for and receive a finance charge ... not exceeding the equivalent of the greater of either of the following: ... (b) Twenty-one percent per year on the unpaid balances of the amount financed." License category: Supervised lender license (C.R.S. § 5-2-301).		 Colorado Attorney General (UCCC Administrator) — C.R.S. § 5-2-201
as of 2026-09-17
Sales finance / installment lender licensing Supervised lender license required from the UCCC Administrator (master license required for more than one place of business); deferred deposit lenders must hold a supervised lender's license
Source says: "if a supervised lender has more than one place of business, they must obtain a master license"; "no person shall engage in the business of deferred deposit loans without having first obtained a supervised lender's license" (C.R.S. § 5-3.1-116). No separate motor-vehicle retail installment sales act; the Colorado Uniform Consumer Credit Code (UCCC) governs consumer credit sales (C.R.S. §§ 5-1-101 et seq.; C.R.S. § 5-3-107).		 Colorado Attorney General — Uniform Consumer Credit Code licensing
as of 2026-09-17
State lending regulator Colorado Attorney General's Office — Consumer Credit Unit (Administrator of the Uniform Consumer Credit Code)
Source says: "The Consumer Credit Unit regulates (through licensure/registration programs) companies and individuals involved in consumer lending"; it "licenses non-bank lenders such as finance companies and payday lenders".		 Colorado Attorney General — Consumer Protection Section
as of 2026-09-17
Sales tax on vehicle purchases 2.9% state rate; state-administered local city/county rates are additional.
Source says: "Colorado state sales tax is imposed at a rate of 2.9%. Any sale made in Colorado may also be subject to state-administered local sales taxes."		 Colorado Department of Revenue — Sales Tax Guide
as of 2026-09-17

How to use these rules

  1. Check the ceiling before you compare offers

    If a quoted APR looks extreme, compare it against the Colorado cap above — and note that a specific statutory exemption can apply to a particular product.

  2. 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.

  3. 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.

  4. 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 Colorado

We cover 270 Census places in Colorado.

Frequently asked questions

What interest rate can a lender charge on a car loan in Colorado?
It depends on the product and the statute that governs it. The sourced table on this page lists Colorado's usury cap, its motor-vehicle sales-finance rules and the licensing requirements, each with its publisher and a link to the primary source.
Are title loans legal in Colorado?
Vehicle title lending is regulated state by state; some states permit it under a licensed lender, some cap it, and some prohibit it outright. See the sourced figure on this page for the current position, and confirm it with the state regulator before you sign anything.
Do I need a license to finance a car in Colorado?
Most consumer lenders and motor-vehicle sales-finance companies must be licensed by the state regulator named on this page. You can verify a lender's licence with that regulator before you sign anything.

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