State rules
Vermont auto loan rules
Vermont has 40 Census places covered on AutoLoanable, with a combined estimated population of 155,375. Vehicle financing in Vermont 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 Vermont
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 12% per annum general legal rate; 18% permitted for certain single-payment loans by regulated lenders (9 V.S.A. § 41a) Source says: the rate of interest or the sum allowed for forbearance or use of money shall be 12 percent per annum computed by the actuarial method |
Vermont General Assembly (Vermont Statutes Online) as of 2026-09-17 |
| Vehicle title loan status | Not authorized — no title-loan statute or license; loans secured by a motor vehicle are capped at 18% per annum (current or previous model year) or 20% per annum (older vehicles), and above-cap loans are unenforceable Source says: "For a loan or extension of credit secured by motor vehicles ... of the current and previous model year, the interest rate shall not exceed 18 percent per annum. For a loan or extension of credit secured by such collateral older than the current or previous model year, the interest rate shall not exceed 20 percent per annum." License category: General Lender license (8 V.S.A. ch. 73); no title-loan-specific license. |
Vermont General Assembly — Vermont Statutes Annotated, 9 V.S.A. § 41a(b)(4) as of 2026-09-17 |
| Sales finance / installment lender licensing | Lender license required from the Commissioner (8 V.S.A. ch. 73, § 2201) Source says: Without first obtaining a license under this chapter from the Commissioner, a person shall not Motor-vehicle retail installment sales are separately governed by the Motor Vehicle Retail Installment Sales Financing (9 V.S.A. §§ 2351-2364). |
Vermont General Assembly (Vermont Statutes Online) as of 2026-09-17 |
| State lending regulator | Vermont Department of Financial Regulation (DFR), Banking Division Source says: The Banking Division regulates the below listed non-depository financial services. |
Vermont Department of Financial Regulation (DFR) as of 2026-09-17 |
| Sales tax on vehicle purchases | 6% state purchase and use tax on the purchase price or the J.D. Power clean trade-in value, whichever is greater Source says: "Purchase and Use Tax is due at the time of registration and/or title at the rate of 6% of the purchase price or the J. D. Power clean trade-in value, whichever is greater" |
Vermont Department of Motor Vehicles 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 Vermont 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 Vermont
We cover 40 Census places in Vermont.