Ohio Max Interest Rate on Auto Loans [UPDATED]
- Buckeye Car Loan
- Apr 9, 2022
- 3 min read
Updated: Apr 29
What is the Maximum APR Interest for Used Cars 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 interest to avoid interest whenever possible.
Contents
Maximum Interest Rate for Auto Loans in Ohio
In Ohio, the general legal interest rate is 8% per annum unless otherwise agreed upon in writing. However, for auto loans, especially those issued by banks, the maximum allowable annual percentage rate (APR) can be higher. Specifically, Ohio law permits contracts for interest rates up to 25% APR for auto loans. However, in some situations, like with some in-house financing, you may end up paying more.
Ohio Maximum Auto Loan Interest Rate: 25%
If you believe they've been charged interest rates above the legal limit, they can seek recourse through the Ohio Attorney General's office or consult with a consumer protection attorney.
Best Auto Loan Rates Online
In the modern age of car buying, most Ohio shoppers decide to begin their journey by pre-qualifying online. Securing financing first ensures you save time and run around at the dealership, and gives you peace of mind throughout the buying process. Here are the top dealers to get you on the road with an affordable interest rate, even with bad credit
 | APR from 2.4% | |
 | APR from 2.8% | |
 | APR from 2.94% | |
 | APR from 6.4% |
Average Interest Rates in Ohio
The average interest rate on a new vehicle in Ohio is 7.48%, and slightly higher for pre-owned vehicles. Your interest rate depends on your credit score, loan amount, and the offered rates of the lender who is funding the loan. Interest rates in Ohio generally range from 5% to 18%. 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 New Car Interest Rate in Ohio: 7.48%
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 principal. 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.
Getting Approved with Low Credit
If you would like more peace of mind when purchasing a vehicle. you can get an online auto loan with bad credit by applying to a subprime lender. Subprime lenders specialize in lending to borrowers with bad credit, and many of them offer online approval. if you need a loan quickly and have bad credit, an online lender may be your best option. Compare offers online to get started. Once you're approved, you'll be able to shop for a new car with confidence, knowing that you have the financing you need in place
TL;DR: Ohio's maximum interest rate on auto loans is 25% (APR)
Frequently Asked Questions:
What is The Maximum Car Loan Interest Rate?
The maximum APR for auto loans in Ohio is 25% on used vehicles
What is the average auto loan interest rate in Ohio?
Are auto loan APR rates determined by the usury rate?
What is Ohio's usury rate?
How does credit score affect your auto loan APR?
Read More from the Buckeye Car Loan Blog: