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State rules

South Carolina auto loan rules

South Carolina has 271 Census places covered on AutoLoanable, with a combined estimated population of 1,994,020. Vehicle financing in South Carolina 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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8.75% cap state usury cap
6% statewide state vehicle sales tax
Permitted vehicle title loans
South Carolina State Board of… state regulator

Key rules for car buyers in South Carolina

RuleDetailSource
Maximum legal interest rate (usury cap) 8.75% per annum statutory legal rate where no rate is agreed (judgment rate: Wall Street Journal prime + 4 points).
Source says: "the legal interest shall be at the rate of eight and three-fourths percent per annum" (S.C. Code 34-31-20(A)).		 South Carolina Legislature (S.C. Code of Laws)
as of 2026-09-17
Vehicle title loan status Short-term vehicle secured loans (nonpurchase-money consumer loans under 120 days secured by a motor vehicle) are permitted; terms must be at least one month, with no more than six renewals (max 240 days), no fees except the lien recording fee, and no deficiency liability.
Source says: "A "short-term vehicle secured loan" means a nonpurchase money consumer loan with an original repayment term of less than one hundred and twenty days and secured by a motor vehicle." License category: Supervised lender license (SC Board of Financial Institutions); consumer finance license (restricted lender).		 South Carolina General Assembly — S.C. Code § 37-3-413
as of 2026-09-17
Sales finance / installment lender licensing Consumer Finance Division licenses and regulates companies making consumer loans with APRs exceeding 12% (Title 37 Consumer Protection Code; Consumer Finance Act, Title 34, ch. 29).
Source says: "The Consumer Finance Division (CFD) licenses and regulates the business activities of all companies... that make consumer loans which have annual percentage rates exceeding 12%." Motor-vehicle retail installment sales are separately governed by the South Carolina Consumer Protection Code — Credit Sales (general credit sales law; §§ 37-2-307 and 37-2-308 apply to motor vehicle sales) (S.C. Code § 37-2-101 et seq.).		 South Carolina State Board of Financial Institutions - Consumer Finance Division
as of 2026-09-17
State lending regulator South Carolina State Board of Financial Institutions - Consumer Finance Division (Office of the Commissioner of Consumer Finance)
Source says: "South Carolina State Board of Financial Institutions Office of the Commissioner of Consumer Finance" (site heading).		 South Carolina State Board of Financial Institutions - Consumer Finance Division
as of 2026-09-17
Sales tax on vehicle purchases 6% statewide sales tax; motor vehicle purchases are subject to a 5% Infrastructure Maintenance Fee (capped at $500) paid to SCDMV in lieu of sales tax
Source says: "The statewide Sales Tax rate is 6%."		 South Carolina Department of Revenue — Sales & Use Tax Index
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 South Carolina 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 South Carolina

We cover 271 Census places in South Carolina.

Frequently asked questions

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