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State rules

Kansas auto loan rules

Kansas has 626 Census places covered on AutoLoanable, with a combined estimated population of 2,446,034. Vehicle financing in Kansas 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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15% cap state usury cap
6.5% statewide state vehicle sales tax
No statute vehicle title loans
OSBC state regulator

Key rules for car buyers in Kansas

RuleDetailSource
Maximum legal interest rate (usury cap) 15% per annum (general contract-rate ceiling for written instruments)
Source says: "may stipulate therein for interest receivable ... at a rate not to exceed 15% per annum unless otherwise specifically authorized by law".		 Kansas Office of the Revisor of Statutes
as of 2026-09-17
Vehicle title loan status Kansas has no title-loan-specific statute; closed-end consumer loans under the Kansas UCCC are capped at 36% per annum and a supervised lender license is required above a 12% APR (open-end credit has no rate ceiling).
Source says: "For any consumer loan incurred pursuant to closed-end credit, a lender may charge a periodic finance charge, calculated accordingly to the actuarial method, not to exceed 36% per annum." License category: Supervised lender license (K.S.A. 16a-2-302).		 Kansas Office of Revisor of Statutes — K.S.A. 16a-2-401
as of 2026-09-17
Sales finance / installment lender licensing Supervised lender license required (supervised loans)
Source says: "Unless a person is exempt from licensing ... such person shall not engage in the business of: (a) Making supervised loans". No separate motor-vehicle retail installment sales act — consumer credit sales are governed by the Kansas Uniform Consumer Credit Code (rate as agreed by the parties) (K.S.A. 16a-1-101 et seq. (esp. K.S.A. 16a-2-201)).		 Kansas Office of the Revisor of Statutes
as of 2026-09-17
State lending regulator Kansas Office of the State Bank Commissioner (OSBC)
Source says: "The Office of the State Bank Commissioner regulates all state-chartered banks, trust companies, mortgage businesses, supervised lenders, credit service organizations, earned wage access service providers, and money transmitters".		 Kansas Office of the State Bank Commissioner
as of 2026-09-17
Sales tax on vehicle purchases 6.5% state rate; local sales taxes additional.
Source says: "Kansas imposes a 6.5 percent (effective July 1, 2015) percent state retailers' sales tax, plus applicable local taxes"		 Kansas Department of Revenue
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 Kansas 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 Kansas

We cover 626 Census places in Kansas.

Frequently asked questions

What interest rate can a lender charge on a car loan in Kansas?
It depends on the product and the statute that governs it. The sourced table on this page lists Kansas'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 Kansas?
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 Kansas?
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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