If you have specific legal questions, please seek the advice of an attorney.
Businesses needing to apply for a Motor Vehicle Sales Finance License must create a new account and submit the application, using ALECS.
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.
On November 14, 2024, the Texas Finance Commission adopted a new rule—7 Texas Administrative Code §84.710—establishing an annual reporting due date for motor vehicle sales finance licensees. Under this rule, the annual report will be due by June 30 of each year, with the first report due on June 30, 2026. Additional information can be found on page 2 of the adoption publication here.
The Texas Financial Education Endowment (TFEE) is now accepting applications for the 2026- 2027 grant cycle. The Finance Commission (FC) of Texas recently approved an aggregate award amount of $850,000 for the upcoming 2026-2027 grant cycle. Grants may be awarded (per organization) in amounts up to $45,000 for a one-year term and $90,000 for a two-year term. Selected grantees will be announced in December 2025. Schools, governmental agencies, for-profit and not-for-profit organizations are encouraged to apply for grant awards through a competitive application and review process.
Apply online with ALECS. Please turn your browsers auto fill feature off prior to beginning your application. To avoid any potential glitches, please use Chrome or Firefox browsers.
Effective September 1, 2015 all application must be submitted online.
Pawn Rate Chart (Effective July 1, 2025 - June 30, 2026)
As new forms of credit become available to Texas consumers, the OCCC helps the public understand their rights and responsibilities.
