Florida Car Loan Laws

Florida caps dealer financing by the age of the car, leaves dealer fees uncapped but disclosed, and gives no grace period before repossession.

Updated Oct 26, 2026 By Lenditia Editorial Team 6-minute read No right to cure

In short

Florida's Motor Vehicle Retail Sales Finance Act caps the finance charge on a dealer contract by vehicle class: $10 to $17 per $100 per year, which over 60 months works out to about 17.27% to 27.5% APR, rising as the car gets older. Dealer fees have no dollar cap, but they must be disclosed. You pay 6% sales tax on the price minus your trade-in, plus any county surtax on the first $5,000. Florida gives no right to cure before repossession. The Office of Financial Regulation licenses sales finance companies.

Right to cure: None in state law
Rate ceiling: About 17%–27.5% APR
Doc fee limit: No cap; disclosure rule
Vehicle sales tax: 6% plus county surtax

Map of the United States with Florida highlighted

Florida car-finance rules at a glance

Florida No right to cure No general right to cure in state law Checked Oct 26, 2026

Right to cure: None; repossession may follow a default without notice
Rate ceiling: $10 to $17 per $100 a year by vehicle class (about 17.27%–27.5% APR over 60 months); Dealer contracts under Fla. Stat. §520.08; banks and credit unions follow their own rules.
Doc fee limit: No cap in state law; fee must be disclosed (§501.976)
After repossession: Notice before sale; you may redeem; deficiency allowed
Vehicle sales tax: 6% of price minus trade-in, plus county surtax on the first $5,000
Regulator: Office of Financial Regulation (OFR)

Rate ceilings on Florida dealer contracts

A retail installment contract signed at a Florida dealership falls under Part I of Chapter 520 of the Florida Statutes. Section 520.08 sorts every vehicle into one of four classes by model year and sets an add-on ceiling for each. Add-on means the charge is counted on the original amount for each year of the contract, so it is not the same as an APR.

Florida maximum finance charges, §520.08, for sales made in 2026
Vehicle class	Ceiling	About this APR at 60 months
Class 1: new, 2026 model year or later	$10 per $100 a year	17.27%
Class 2: other new; used 2024 to 2026 models	$11 per $100 a year	18.80%
Class 3: used 2022 or 2023 models	$15 per $100 a year	24.68%
Class 4: used 2021 models or older	$17 per $100 a year	27.50%

The APR column is our conversion of each ceiling for a 60-month contract with equal payments; on a shorter contract the equivalent APR is a little higher. The law also allows a minimum finance charge of $25 and a late charge of up to 5% of a missed installment. Your contract must show the APR, and that is the figure to compare with a bank or credit union offer. Try different rates in the car payment calculator.

Dealer fees and sales tax in Florida

Dealer fees. Florida sets no dollar limit on the fee a dealer charges for paperwork and predelivery work. A dealer that lists such a charge must print a statement on the documents that it covers costs and profit to the dealer (§501.976). The fee must also be fully disclosed in the contract.
Sales tax. The state rate is 6%. Fees a dealer adds, such as preparation or closing fees, are taxable; separately stated state title and registration fees are not.
County surtax. If the address on your title or registration is in a county with a discretionary sales surtax, that surtax applies to the first $5,000 of the price.
Trade-in. When you trade in a vehicle as part of the same purchase from a dealer, its allowance comes off the taxable price.
GAP refunds. If you pay off early and cancel a GAP product, no more than $75 in administrative fees may be taken from your refund (§520.07).

Falling behind and repossession in Florida

Florida has no statute that gives car buyers a notice and a set period to catch up before the lender acts. Once your contract says you are in default, the rules in Part VI of Chapter 679, Florida's version of Article 9 of the Uniform Commercial Code, take over.

Repossession. The lender may take the car without a court order, but not by breaching the peace (§679.609).
Notice of sale. Before it sells the car, the lender must send you a written notice about the sale (§679.611 and §679.614).
Redemption. You can get the car back before the sale by paying the full amount owed plus the lender's reasonable costs (§679.623).
Deficiency. If the sale brings less than you owe, you can be sued for the rest, and you can ask the lender how it calculated that figure (§679.615 and §679.616).

Our guides to repossession and to voluntary surrender walk through your options at each stage.

Where to check a lender and complain

Companies that buy car contracts from Florida dealers must hold a sales finance company license from the Office of Financial Regulation. Banks and credit unions have their own regulators. Before you sign, you can ask the dealer which company will hold the contract and look up its license. If a problem comes up later, keep copies of the contract, payment records and letters, and send a written complaint to the holder first.

Office of Financial Regulation

Licenses sales finance companies under Chapter 520 and takes complaints about them.

Florida Attorney General

Takes complaints about deceptive dealer practices.

Consumer Financial Protection Bureau

Accepts complaints about any auto lender or servicer, including banks and finance companies.

Questions people ask

What is the maximum interest rate on a car loan in Florida?

For dealer-arranged contracts, it depends on the car's class: $10 per $100 a year for the newest cars up to $17 per $100 a year for used cars more than four model years old. Over 60 months that is about 17.27% to 27.5% APR.

Is there a cap on Florida dealer fees?

No dollar cap. The dealer must disclose the fee in the contract and on documents that list it, and sales tax applies to it.

Does a trade-in lower the sales tax in Florida?

Yes. When you trade in a vehicle in the same purchase from a dealer, the trade-in allowance is subtracted before the 6% tax and any county surtax are figured.

Will I get a warning before my car is repossessed in Florida?

Florida law does not require one. The lender must send a notice before it sells the car. See what to do if you are behind.

Sources

Facts on this page were checked against these sources on October 26, 2026. The APR figures are our conversion of the statutory add-on ceilings for a 60-month contract.