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Missouri Car Loan Laws

Missouri lets dealers charge any agreed finance rate, but a lender must give you 20 days to catch up before it repossesses for a missed payment.

Updated By Lenditia Editorial Team 6-minute read Right to cure

In short

Missouri sets no ceiling on the finance charge in a dealer contract: the seller may charge any rate you agree to. What Missouri does give you is a right to cure. Once a payment is 10 days late, the lender must send a notice and wait 20 days before it repossesses or demands the whole balance. Dealer administrative fees are capped at $620.79 in 2026, a figure that rises with inflation each year. You pay 4.225% state sales tax plus the local tax where you live, on the price after your trade-in. The Division of Finance licenses companies that finance motor vehicle time sales.

Right to cure
20 days after notice
Rate ceiling
None on dealer contracts
Doc fee limit
$620.79 in 2026
Vehicle sales tax
4.225% plus local
Map of the United States with Missouri highlighted

Missouri car-finance rules at a glance

Missouri Right to cure Right to catch up on missed payments and keep the car Checked Oct 26, 2026
Right to cure
Yes: 20 days after a notice, once 10 days in default
RSMo 408.554 and 408.555; the lender may skip the notice after two earlier defaults on the same loan.
Rate ceiling
No cap on dealer contracts: any rate the buyer agrees to
RSMo 365.120 for motor vehicle time sales; banks, credit unions and consumer lenders follow other rules.
Doc fee limit
$620.79 administrative fee cap for 2026, indexed each year
RSMo 301.558 and 12 CSR 10-26.231; same fee for all customers, itemized, with a not-an-official-fee notice.
After repossession
Notice before sale; redemption; deficiency only if over $500 financed and $300 unpaid
Vehicle sales tax
4.225% state plus local tax where you live, after trade-in
Regulator
Missouri Division of Finance

What a Missouri car contract can charge

A retail installment contract from a Missouri dealer falls under the motor vehicle time sales law in chapter 365. Section 365.120 lets the seller charge any time price differential the buyer agrees to, whatever the model year. The contract may also carry a minimum finance charge of $25.

With no legal ceiling, your own comparison is the only check on the rate. Get a preapproval from a bank or credit union before you visit the dealer, and compare the APR on each offer. The car payment calculator turns a rate into a monthly payment and total interest.

Fees and taxes on a Missouri car purchase

  • Administrative fee. Section 301.558 started the cap at $500 and raises it each year by the change in the Consumer Price Index. The Department of Revenue set it at $620.79 for 2026; each new figure takes effect February 1.
  • Same fee for everyone. A dealer must charge all retail customers the same administrative fee and list it as a separate item on the buyer's order.
  • Required notice. The worksheet, buyer's order or contract must say, in conspicuous type, that the fee is not an official fee and is not required by law.
  • Sales tax. The state rate is 4.225%, plus the city and county taxes where you live. Tax is figured on the price after rebates and your trade-in, and the Department of Revenue collects it when you title the car.

Falling behind on a car loan in Missouri

Sections 408.551 to 408.562 apply to consumer credit, including motor vehicle time sales and consumer loans. They give you a set window to catch up after a missed payment, which many states do not.

  1. Notice of right to cure. After you have been in default for 10 days for a missed payment, the lender may send a notice stating the amount to pay and the last day to pay it (RSMo 408.554). It goes to you and every cosigner.
  2. Twenty days to catch up. The lender may not repossess or accelerate the loan until 20 days after the notice is given (RSMo 408.555).
  3. Curing. Pay the past-due amounts plus any unpaid late or deferral charges, without the accelerated balance. The loan then goes on as if you had never defaulted.
  4. The limit. After you have defaulted twice on the same loan, even if you cured both times, the lender no longer has to send the notice.

If the car is repossessed, Article 9 of the Uniform Commercial Code applies: the lender must avoid a breach of the peace, send notice before the sale, and let you redeem by paying the debt and costs. Under RSMo 408.556, the lender can collect a deficiency only if the amount financed was more than $500 and at least $300 was unpaid at default. On a purchase money loan with a principal under $500, repossession ends your liability. See our guides to repossession and the balance left after a sale.

Where to check a lender and complain

The Division of Finance licenses motor vehicle time sale creditors under chapter 365 and consumer installment lenders, and it takes complaints about the companies it oversees. Banks and credit unions answer to their own regulators.

Missouri Division of Finance

Licenses motor vehicle time sale creditors and takes consumer complaints online or at 573-751-3242.

Missouri Department of Revenue

Licenses dealers, publishes the administrative fee cap each year and collects sales tax at titling.

Consumer Financial Protection Bureau

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

Questions people ask

Is there a maximum interest rate on car loans in Missouri?

Not for dealer contracts. Section 365.120 allows any finance rate the buyer agrees to, so compare offers before you sign.

How long do I have to catch up on a car payment in Missouri?

Once you are 10 days late, the lender can send a notice of right to cure. It then has to wait 20 days before it repossesses or calls the whole loan due.

How much is the dealer administrative fee in Missouri?

The cap is $620.79 for 2026. It changes every February 1 with inflation, and a dealer must charge every retail customer the same fee.

Can a Missouri lender collect a deficiency after repossession?

Only if the amount financed was over $500 and at least $300 was unpaid at default, and the lender followed the Article 9 sale rules.

Sources

Facts on this page were checked against these sources on October 26, 2026. The administrative fee cap is reset each February 1.

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