Utah Car Loan Laws

What a Utah car contract can charge

When a dealer arranges your loan, you sign a retail installment contract, and Utah's Consumer Credit Code (Title 70C) applies. Section 70C-2-101 says the parties may agree to any finance charge unless another part of the code limits it. No section sets a percentage ceiling for car sales, so the rate in your contract is the rate you negotiated.

That puts the work on you. The contract must show the APR, and that is the number to compare with a bank or credit union offer. Get a preapproval before you visit the dealer, then check what each rate costs in dollars with the car payment calculator. Banks and credit unions follow their own charter rules, but they compete for the same loan.

Fees and taxes on a Utah purchase

• Doc fee. Utah sets no maximum. The Motor Vehicle Enforcement Division says the fee must be listed separately and may not be called a state-mandated fee. Since July 1, 2023, the dealer documentary service fee must also appear on the transaction disclosure form.
• Posted sign. Dealers with temporary permit authority must post a sign saying the doc fee covers dealer costs and profit and is not set by the state (rule R877-23V-14).
• Sales tax. The state rate is 4.70%, and city and county taxes are added. The lowest combined rate on the state's first-quarter 2026 chart was 6.35%. A dealer charges the rate where it is located; in a private sale, the rate is based on where you register the car.
• Trade-ins. The Division of Motor Vehicles credits a trade only when it is a vehicle-for-vehicle trade in the same transaction. Other trades are valued and taxed.

Ask for an itemized out-the-door figure before you talk about monthly payments, and check it with the out-the-door price calculator.

Falling behind on a car loan in Utah

Title 70C has no right-to-cure section, so Utah does not require a notice and a grace period before the lender acts on a default. What counts as default is set by your contract. Once you are in default, the lender may repossess without a court order, as long as it does not breach the peace.

1. 1 Repossession. The agent may tow the car from a driveway or a street, but may not use force or threats. Ask for any personal items left inside.
2. 2 Notice before the sale. The lender must tell you how and when it will sell the car.
3. 3 Getting the car back. Until the sale, you can redeem it by paying the full balance plus the lender's repossession costs.
4. 4 Small purchases. If the cash price was $3,000 or less and the seller repossesses or accepts the car back, the remaining debt is fully satisfied (section 70C-7-101). Above that amount, you can owe a deficiency.

The $3,000 rule has exceptions, for example when the car was badly damaged after delivery through no fault of the creditor, or when you refused to hand it over before the creditor sued. Our guides to repossession and the balance left after a sale explain each step.

Where to check a lender and complain

Creditors covered by the Consumer Credit Code file a Consumer Credit Notification with the Department of Financial Institutions through NMLS, which you can search online. Dealers themselves are licensed by the Motor Vehicle Enforcement Division.

Title loans and payday loans follow different Utah rules, covered by our sister site Lendmira.

Questions people ask