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State rules

North Dakota auto loan rules

North Dakota has 355 Census places covered on AutoLoanable, with a combined estimated population of 611,468. Vehicle financing in North Dakota 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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7% cap state usury cap
5% statewide state vehicle sales tax
Permitted vehicle title loans
NDDFI state regulator

Key rules for car buyers in North Dakota

RuleDetailSource
Maximum legal interest rate (usury cap) Formula ceiling: 6-month U.S. Treasury bill average + 5.5 percentage points, never less than 7%; NDDFI-published rate for September 2026: 9.204%.
Source says: "The rate is equal to five and one-half percent (5.5%) higher than the current cost of money" and "the maximum allowable interest rate ceiling may not be less than seven (7) percent" (NDDFI Usury Rate page; September 2026 rate 9.204%).		 North Dakota Department of Financial Institutions
as of 2026-09-17
Vehicle title loan status Title loans are not separately licensed; loans made by licensed money brokers (North Dakota's primary lending license) are capped at 36% per year including all charges and fees necessary for the extension of credit.
Source says: "a licensee may not contract for or receive finance charges pursuant to a loan in excess of an annual rate of thirty-six percent, including all charges and fees necessary for the extension of credit incurred at the time of origination" License category: money broker license (Money Brokers Act).		 North Dakota Legislative Assembly — N.D. Cent. Code § 13-04.1-09.3
as of 2026-09-17
Sales finance / installment lender licensing Money broker license required to engage in money brokering (arranging/providing loans); issued by the commissioner of financial institutions.
Source says: "may not engage in money brokering in the state of North Dakota without a money broker license issued by the commissioner" (N.D.C.C. 13-04.1-02). Motor-vehicle retail installment sales are separately governed by the Retail Installment Sales Act (N.D. Cent. Code ch. 51-13).		 North Dakota Legislative Branch
as of 2026-09-17
State lending regulator North Dakota Department of Financial Institutions (NDDFI)
Source says: "The Department also licenses and regulates Money Brokers... Deferred Presentment Service Providers (Payday Lenders), Collection Agencies, Debt Settlement Service Providers, and Money Transmitters."		 North Dakota Department of Financial Institutions
as of 2026-09-17
Sales tax on vehicle purchases 5% state rate; local city/county taxes additional
Source says: "The North Dakota sales tax rate is 5% for most retail sales."		 North Dakota Office of State Tax Commissioner
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 North Dakota 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 North Dakota

We cover 355 Census places in North Dakota.

Frequently asked questions

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