State rules
Maryland auto loan rules
Maryland has 157 Census places covered on AutoLoanable, with a combined estimated population of 1,545,931. Vehicle financing in Maryland 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 Maryland
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 24% per year effective simple interest for qualifying loans (Md. Code Com. Law § 12-103(c)); otherwise 8% (written agreement) or 18% Source says: "a lender may charge an effective rate of simple interest not in excess of 24 percent per year on the unpaid principal balance" |
Maryland General Assembly as of 2026-09-17 |
| Vehicle title loan status | Permitted for licensed consumer lenders; the Maryland Consumer Loan Law caps interest on vehicle title loans of $6,000 or less at 2.75% per month on the first $1,000 (about 33% APR) with lower ceilings for larger loans. Source says: "The Maryland Consumer Loan Law ("MCLL") applies to "vehicle title loans" of $6,000 or less." License category: Consumer loan license (Maryland Consumer Loan Law). |
Maryland Department of Labor — Office of the Commissioner of Financial Regulation (Advisory: Vehicle Title Loan Providers) as of 2026-09-17 |
| Sales finance / installment lender licensing | Consumer Lender license required to make loans under the Maryland Consumer Loan Law (Com. Law § 12-301 et seq.) Source says: "A Consumer Lender is a business that makes any loan or advance of money or credit under the Maryland Consumer Loan Law" Motor-vehicle retail installment sales are separately governed by the Maryland Retail Installment Sales Act (Md. Code Ann., Com. Law §§ 12-601 to 12-636 (motor vehicle finance charges at § 12-609)). |
Maryland Department of Labor, Office of Financial Regulation as of 2026-09-17 |
| State lending regulator | Office of Financial Regulation; Commissioner of Financial Regulation (Maryland Department of Labor) Source says: "is Maryland's consumer financial protection agency and financial services regulator" |
Maryland Department of Labor as of 2026-09-17 |
| Sales tax on vehicle purchases | 6.5% motor vehicle excise tax at titling; vehicles subject to the excise tax are not subject to the 6% state sales and use tax Source says: "an excise tax is imposed: For each original and each subsequent certificate of title issued in this State for a motor vehicle ... 6.5% of the fair market value of the vehicle" |
Maryland General Assembly — Md. Code, Transp. § 13-809; Comptroller of Maryland 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 Maryland 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 Maryland
We cover 157 Census places in Maryland.