Alaska Car Loan Laws

What an Alaska dealer contract can charge

When a dealer arranges your financing, you sign a retail installment contract. Alaska covers these contracts in the Retail Installment Sales Act, Chapter 45.10 of the Alaska Statutes. Section 45.10.120 says the service charge is the rate agreed between the seller and the buyer, notwithstanding any other law. In practice, that means no state ceiling applies to the finance charge on a typical car contract.

The act still controls the paperwork: it covers the written contract, your copy of it and the signing of a contract with blanks left in it. Late charges, collection costs and attorney fees are allowed only if the contract authorizes them, and they must be reasonable (§45.10.080). Because the rate is open, the APR on the contract is the number to compare. Check what it costs in dollars with the car payment calculator, and get a quote from a bank or credit union before you visit the dealer.

Taxes and fees when you buy a car in Alaska

• No state sales tax. Alaska has no statewide sales tax. Some local governments collect their own sales tax, so the total depends on where you buy and register.
• Title and lien fees. The state charges $15 to issue a title, including a transfer, and $15 to file a lien, which applies when you finance the car (AS 28.10.441).
• Local registration tax. A city or borough can opt in to the biennial motor vehicle registration tax. For most vehicles of 5,000 pounds or less, it runs from $121 for the newest model year down to $16 for cars in their eighth year or older, and it replaces local use and property taxes on those vehicles (AS 28.10.431).
• Doc fee. We found no cap on dealer documentary fees in Alaska law. Ask for the amount in writing.

What happens if you fall behind in Alaska

Alaska law does not give car buyers a right to cure, meaning a required warning and a set period to catch up. Once your contract says you are in default, the lender can repossess without a court order. Alaska's version of Article 9 of the Uniform Commercial Code, Chapter 45.29, sets the rules from there.

1. 1 Repossession. The lender may take the car after default without going to court, as long as it does not breach the peace (AS 45.29.609).
2. 2 Notice before the sale. The lender must send a notice before it sells the car, with the details required for consumer goods (AS 45.29.611 to 45.29.614).
3. 3 Redemption. Until the sale, you can recover the car by paying the full balance and the lender's reasonable expenses (AS 45.29.623).
4. 4 The deficiency. If the sale brings less than you owe, you remain liable for the rest, and you can ask the lender to explain how it calculated the figure (AS 45.29.615 and 45.29.616).

Read our guides to repossession and the balance left after a sale before you talk to the lender. If you are on active duty, federal law requires a court order before repossession when you made a payment before your service began.

Where to check a lender and complain

Alaska splits oversight. The Division of Banking and Securities licenses non-bank lenders, including small loan companies, while the Attorney General can bring actions under the Retail Installment Sales Act. Banks and credit unions answer to their own regulators. Payday and small-loan limits are covered on our sister site's Alaska lending laws page.

Questions people ask