State rules

Alaska auto loan rules

Alaska has 149 Census places covered on AutoLoanable, with a combined estimated population of 491,426. Vehicle financing in Alaska 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

The lowest rates are only available to the most qualified applicants.

Advertising disclosure: AutoLoanable may receive a referral fee if you apply through the link above. That fee does not change the rate you are offered, and it does not change our content. We are not a lender. Read the full disclosure.

10.5% cap state usury cap
Permitted vehicle title loans
Alaska Department of… state regulator
License required from… lender licensing

Key rules for car buyers in Alaska

RuleDetailSource
Maximum legal interest rate (usury cap) 10.5% per annum default; by contract, the greater of 10% or 5 percentage points above the 12th Federal Reserve District advance rate (loans over $25,000 exempt)
Source says: "The rate of interest in the state is 10.5 percent a year and no more on money after it is due"; "more than the greater of 10 percent or five percentage points above the annual rate charged member banks for advances by the 12th Federal Reserve District".
Alaska Legislature — Alaska Statutes § 45.45.010
as of 2026-09-17
Vehicle title loan status Title-secured loans are made by licensed small loan companies under the Alaska Small Loans Act; interest is capped at 3% per month on the first $850, 2% per month on $850-$10,000, and a contract rate above $10,000 (loans up to $25,000).
Source says: "interest at a rate not exceeding three percent a month on that part of the unpaid principal balance of a loan not in excess of $850" License category: Small loan company license (Alaska Stat. § 06.20.010; Division of Banking and Securities lists 'Title Lending').
Alaska State Legislature — Alaska Stat. § 06.20.230 (Alaska Small Loans Act)
as of 2026-09-17
Sales finance / installment lender licensing License required from the department to make loans of $25,000 or less at above-legal rates; $25,000 liquid assets and $25,000 bond required
Source says: "without first obtaining a license from the department"; "liquid assets of at least $25,000". Motor-vehicle retail installment sales are separately governed by the Alaska Retail Installment Sales Act (Alaska Stat. §§ 45.10.010-45.10.230).
Alaska Legislature — Alaska Statutes §§ 06.20.010, 06.20.040
as of 2026-09-17
State lending regulator Alaska Department of Commerce, Community, and Economic Development (Division of Banking and Securities)
Source says: "department means the Department of Commerce, Community, and Economic Development". The Division of Banking and Securities (commerce.alaska.gov/web/dbs) administers the department's lending license programs.
Alaska Legislature — Alaska Statutes § 06.50.900(5)
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 Alaska 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 Alaska

We cover 149 Census places in Alaska.

Frequently asked questions

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

Related