Current Motor Vehicle Rate Chart

Effective January 1, 2025 to December 31, 2025

The maximum rates available for the financing of vehicles in equal monthly installments are found in the Texas Finance Code, Section 348.104. That section specifies add-on rates for four classes of vehicle. The add-on rate is the actual dollars per hundred per year of finance charge calculated on the amount financed. The age of the vehicle determines the add-on rate to use. This chart converts the add-on rates to equivalent annualized percentage rates for contracts with substantially equal monthly payments.

As an alternative to the add-on rates, Section 348.105 of the Texas Finance Code provides an alternate rate of 18%. The 18% effective rate may also be used as an alternative rate for contracts with repayment terms that are not monthly and not substantially equal in amount.

Caution: Do not confuse add-on rates with APRs. You cannot quote add-on rates to consumers. If the transactions are seller-financed sales tax transactions (sales tax deferred), the “contract rate” shown on the motor vehicle retail installment sales contract cannot exceed the equivalent annualized percentage rates shown below.

Newer Vehicles

Class 1 and 2

To make this chart simpler, conversions are omitted for Classes 1 and 2 because they result in rates less than the alternate rate of 18% provided by section 348.105 of the Texas Finance Code. The following vehicles fall into Classes 1 and 2:

• Any 2025 or newer vehicle
• Any used motor vehicle not more than two years old
• Any new or used heavy commercial vehicle not more than two years old

Used Vehicles

Class 3: Add-on rate expressed as contract rate

Vehicles 2022 or 2021 can use the Class 3 add-on rate of $12.50 per hundred per year. Here is the $12.50 add-on rate expressed as equivalent annualized percentage rates for common contract terms:

Class 4: Add-on rate expressed as contract rate

Vehicles 2020 or older can use the Class 4 add-on rate of $15.00 per hundred per year. Here is the $15 add-on rate expressed as equivalent annualized percentage rates for common contract terms:

The OCCC also provides a month-by-month chart expressing the $12.50 and $15 add-on rates as equivalent annualized percentage rates for contracts with substantially equal monthly payments with terms ranging from 1 to 84 months. 

Archived Vehicle Class Years.

Below are the years to be used for each class in a given year. To find the appropriate maximum rate, using the chart below, determine the calendar year and year of the vehicle to find the correct class. Once you have found the correct class, use the charts above to determine the maximum rate.

For example, a 2020 motor vehicle sold in 2024 would be considered a Class 3 vehicle. Financing a Class 3 vehicle in 2024 for 36 months would return a maximum rate of 22.0077%.

If you have any questions concerning the financing of motor vehicles, please contact the Office of Consumer Credit Commissioner at 512.936.7600.