State rules
District of Columbia auto loan rules
District of Columbia has 1 Census places covered on AutoLoanable, with a combined estimated population of 678,972. Vehicle financing in District of Columbia 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 District of Columbia
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 24% per annum (exemptions apply, including certain loans over $2,500 and mortgage-secured loans) Source says: "may contract therein for the payment of interest on the principal amount thereof at a rate not exceeding 24% per annum". |
Council of the District of Columbia — D.C. Code § 28-3301 as of 2026-09-17 |
| Vehicle title loan status | No title-loan-specific statute; money lenders must be licensed and may not charge more than 24% per annum, so high-cost title loans are unlawful. Source says: "the parties to an instrument in writing for the payment of money at a future time may contract therein for the payment of interest on the principal amount thereof at a rate not exceeding 24% per annum" License category: Money lender license (D.C. Code Title 26, ch. 9). |
Council of the District of Columbia — D.C. Code § 28-3301 as of 2026-09-17 |
| Sales finance / installment lender licensing | Money lender license required to lend at more than 6% per annum; $500 annual license tax; issued as a financial services endorsement Source says: "loaning money upon which a rate of interest greater than 6% per annum is charged on any security of any kind"; "without procuring license". Motor-vehicle retail installment sales are separately governed by the Installment Sales of Motor Vehicles (D.C. Code §§ 50-601 to 50-610). |
Council of the District of Columbia — D.C. Code § 26-901 as of 2026-09-17 |
| State lending regulator | District of Columbia Department of Insurance, Securities and Banking (DISB) Source says: "DISB regulates the following financial services entities"; including "check cashers, money transmitters, consumer sales finance companies, money lenders". |
District of Columbia Department of Insurance, Securities and Banking as of 2026-09-17 |
| Sales tax on vehicle purchases | No general sales tax on vehicle purchases (D.C. Code § 47-2005(13) exempts vehicles); instead a title excise tax of 1%-11% of fair market value applies based on weight and fuel economy. Source says: "The excise tax is imposed on issuing every original and subsequent certificate of title for motor vehicles and trailers." |
District of Columbia Office of the Chief Financial Officer — Office of Revenue Analysis (Tax Facts) 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 District of Columbia 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 District of Columbia
We cover 1 Census places in District of Columbia.