State rules
Pennsylvania auto loan rules
Pennsylvania has 1,013 Census places covered on AutoLoanable, with a combined estimated population of 5,602,115. Vehicle financing in Pennsylvania 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 Pennsylvania
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 6% per annum maximum for loans of $50,000 or less where no lower rate is contracted (41 P.S. 201(a)). Source says: "the maximum lawful rate of interest for the loan or use of money... shall be six per cent per annum" (Loan Interest and Protection Law, Section 201(a)). |
Pennsylvania General Assembly (Laws of Pennsylvania, Act 6 of 1974) as of 2026-09-17 |
| Vehicle title loan status | No title-loan-specific statute or license; licensed consumer discount companies may make secured loans up to $25,000 but charges are capped at 9.5% per year discount plus a service charge (max $150), or 2% per month on revolving accounts, so high-cost motor-vehicle title loans are not authorized. Source says: "charge, contract for, receive or collect interest or discount at a rate not to exceed nine dollars and fifty cents ($9.50) per one hundred dollars ($100) per year" License category: Consumer discount company license (Pennsylvania Department of Banking and Securities). |
Pennsylvania General Assembly — Consumer Discount Company Act, 7 P.S. § 6213(E) as of 2026-09-17 |
| Sales finance / installment lender licensing | Consumer Discount Company Act license required for non-mortgage consumer loans above 6%; licensed lenders may charge up to 24% on loans of $25,000 or less. Source says: "A consumer discount company is a business corporation that negotiates or makes non-mortgage loans or advances of money on credit." Motor-vehicle retail installment sales are separately governed by the Motor Vehicle Sales Finance (12 Pa.C.S. ch. 62; succeeded the Motor Vehicle Sales Finance Act of 1947) (12 Pa.C.S. §§ 6201-6275). |
Pennsylvania Department of Banking and Securities as of 2026-09-17 |
| State lending regulator | Pennsylvania Department of Banking and Securities (DoBS) Source says: "The Department of Banking and Securities regulates financial services in Pennsylvania." |
Pennsylvania Department of Banking and Securities as of 2026-09-17 |
| Sales tax on vehicle purchases | 6% state rate; local rates additional (1% Allegheny County, 2% Philadelphia) Source says: "The Pennsylvania sales tax rate is 6 percent. By law, a 1 percent local tax is added to purchases made in Allegheny County, and 2 percent local tax is added to purchases made in Philadelphia." |
Pennsylvania Department of Revenue — Sales, Use and Hotel Occupancy Tax 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 Pennsylvania 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 Pennsylvania
We cover 1,013 Census places in Pennsylvania.