State rules
Massachusetts auto loan rules
Massachusetts has 54 Census places covered on AutoLoanable, with a combined estimated population of 3,652,204. Vehicle financing in Massachusetts 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 Massachusetts
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 20% per annum criminal-usury threshold (M.G.L. c. 271, § 49); statutory exceptions apply Source says: "interest and expenses the aggregate of which exceeds an amount greater than twenty per centum per annum upon the sum loaned" |
Massachusetts General Court as of 2026-09-17 |
| Vehicle title loan status | Licensed small loans are capped at 23% per year plus a $20 administrative fee by the Small Loan Rate Order, and unlicensed lending above 20% per annum is criminal usury — title-loan pricing is not permitted. Source says: "The rate order establishes a maximum interest rate for small loans of twenty-three percent in addition to a $20.00 administrative fee." License category: Small loan agency license (Massachusetts Division of Banks). |
Massachusetts Division of Banks — Selected Opinion 01-097 (M.G.L. c. 140, § 96) as of 2026-09-17 |
| Sales finance / installment lender licensing | Small-loan license required for loans of $6,000 or less when interest and expenses exceed 12% per year (M.G.L. c. 140, § 96) Source says: "No person shall directly or indirectly engage in the business of making loans of six thousand dollars or less ... without first obtaining ... a license" Motor-vehicle retail installment sales are separately governed by the Retail Instalment Sales of Motor Vehicles (Motor Vehicle Sales Finance Act) (Mass. Gen. Laws ch. 255B, §§ 1 et seq.). |
Massachusetts General Court as of 2026-09-17 |
| State lending regulator | Division of Banks (Office of the Commissioner of Banks) Source says: "The Division of Banks (DOB) cautions you when applying for a payday loan" |
Massachusetts Division of Banks as of 2026-09-17 |
| Sales tax on vehicle purchases | 6.25% state rate; no local sales tax Source says: "If the sale is made by a motor vehicle or trailer dealer or lessor who is registered, the sales tax rate is 6.25%." |
Massachusetts Department of Revenue 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 Massachusetts 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 Massachusetts
We cover 54 Census places in Massachusetts.