What is the Maximum APR Interest for Used Cars in Ohio?
Maximum Interest Rate for Auto Loans in Ohio
When considering an auto loan it is crucial to pay attention to your interest rate. This is because your interest rate or APR (Annual percentage rate) is the amount that you pay the bank each year for your loan. It does not go towards the equity of your vehicle, it is a fee paid to the bank. For these reasons, it is in your financial best to avoid interest whenever possible. Interest rates for auto loans in Ohio usually range from 5 to 24% depending on your credit score and history. The maximum APR for auto loans in Ohio is 25%. However, in some situations, you may end up paying more.
Ohio Maximum Auto Loan Interest Rate: 25%
Can I Be Charged More Than Max Interest?
Usuary laws can complicate the issue of finding the maximum legal interest rate. Consumers often pay a higher rate than what is legally allowed. Some states add certain usuary rates depending on the loan type and amount. Most states cap the amount of interest allowed and offer penalties for those who charge higher interest rates against the loan principal. The usuary rate for loans in Ohio is 8% To estimate your monthly payment see our free auto loan calculator.
Ohio Usury Rate: 8%
Average Interest Rates in Ohio
The average interest rate on a new vehicle in Ohio is 5.2% and slightly higher for pre-owned vehicles. Your interest depends on your credit score, loan amount, and offered rates of the lender who is funding the loan. Interest rates in Ohio generally range from 5% to 24%. The best way to lower your interest rate on an auto loan is by improving your credit or seeking a co-signer. If you do not know your credit score you can learn how to find it here.
Average Interest Rate in Ohio: 5.2%
How to Find the Lowest Interest Rate in Ohio
Most consumers considering an auto loan begin their shopping online. Not only can you browse vehicles and prices but finance terms as well. Sites like Buckeye Car Loan, Auto Credit Express, and Supermoney allow you to pre-qualify online, saving the hassle of going to different dealers and preventing multiple credit pulls that can harm your score. Getting the vehicle you want is important, getting the vehicle you can afford is crucial. By shopping or applying online before you arrive at the dealer you can better understand your credit and financial situation so you are prepared for what the banks (or the salesman) has to throw at you.
Best Places to Pre-Qualify Online:
How is My Interest Rate Determined
Your interest rate can vary based on the finance terms you qualify Lenders will consider your debt-to-income ratio, as well as loan term, and principle. However, the most important factor is your credit, particularly your FICO score. Your FICO score is determined by a number of factors, the largest of which (35%) is determined by payment history. Installment payments on loans such as auto loans are one of the fastest credit-building tools. Other factors include your employment history, debt-to-income ratio, and your housing stability. You can learn how to find your FICO score here.
TL;DR: Ohio's maximum interest rate on auto loans is 25% (APR) but it is possible to pay more.