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State rules

Minnesota auto loan rules

Minnesota has 853 Census places covered on AutoLoanable, with a combined estimated population of 4,779,276. Vehicle financing in Minnesota 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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6% cap state usury cap
6.875% statewide state vehicle sales tax
Permitted vehicle title loans
Minnesota Department of… state regulator

Key rules for car buyers in Minnesota

RuleDetailSource
Maximum legal interest rate (usury cap) 6% per year legal rate of interest; a different rate may be contracted for in writing (Minn. Stat. § 334.01)
Source says: "The interest for any legal indebtedness shall be at the rate of $6 upon $100 for a year"		 Minnesota Legislature, Office of the Revisor of Statutes
as of 2026-09-17
Vehicle title loan status Permitted for lenders licensed as an industrial loan and thrift company or regulated lender; charges may not exceed the section 325J.07 limits (3% per month, 36% per year, plus a storage/services fee up to $20).
Source says: "may not demand or collect interest, fees, or any other charges that in the aggregate exceed the amounts allowed to be demanded and collected under section 325J.07" License category: Industrial loan and thrift company license or regulated lender license (Minnesota Department of Commerce).		 Minnesota Legislature (Revisor of Statutes) — Minn. Stat. § 47.602
as of 2026-09-17
Sales finance / installment lender licensing Regulated loan license required from the commissioner for loans within the Chapter 56 threshold (Minn. Stat. § 56.01)
Source says: "without first obtaining a license from the commissioner, no person shall engage in the business of making loans of money" Motor-vehicle retail installment sales are separately governed by the Motor Vehicle Retail Installment Sales Act (Minn. Stat. §§ 53C.01-53C.14).		 Minnesota Legislature, Office of the Revisor of Statutes
as of 2026-09-17
State lending regulator Minnesota Department of Commerce (commissioner of commerce)
Source says: ""Commissioner" means the commissioner of commerce"		 Minnesota Legislature, Office of the Revisor of Statutes
as of 2026-09-17
Sales tax on vehicle purchases 6.875% state motor vehicle sales tax; local sales tax does not apply to vehicle sales (a local vehicle excise tax may apply)
Source says: "Starting July 1, 2023 the tax rate is 6.875% of the taxable vehicle sales price."		 Minnesota 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 Minnesota 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 Minnesota

We cover 853 Census places in Minnesota.

Frequently asked questions

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