Masthead

2014 Motor Vehicle Rate Chart

Effective January 1, 2014 to December 31, 2014 (rate charts from previous years also available)

The maximum rates available for the financing of vehicles in equal monthly installments are found in the Texas Finance Code, Section 348.104. That section specifies add-on rates for four classes of vehicle. The add-on rate is the actual dollars per hundred per year of finance charge calculated on the amount financed. The age of the vehicle determines the add-on rate to use. This chart converts the add-on rates to equivalent annualized percentage rates for contracts with substantially equal monthly payments.

As an alternative to the add-on rates, Section 348.105 of the Texas Finance Code provides an alternate rate of 18%. The 18% effective rate may also be used as an alternative rate for contracts with repayment terms that are not monthly and not substantially equal in amount.

Caution: Do not confuse add-on rates with APRs. You cannot quote add-on rates to consumers. If the transactions are seller-financed sales tax transactions (sales tax deferred), the “contract rate” shown on the motor vehicle retail installment sales contract cannot exceed the equivalent annualized percentage rates shown below.


Newer Vehicles
To make this chart simpler, conversions are omitted for Classes 1 and 2 because they result in rates less than the alternate rate of 18% provided by section 348.105 of the Texas Finance Code. The following vehicles fall into Classes 1 and 2:

Used Vehicles
Any 2011 or 2010 can use the Class 3 add-on rate of $12.50 per hundred per year. Here is the $12.50 add-on rate expressed as
equivalent annualized percentage rates for common contract terms:

12 months

18 months

24 months

30 months

36 months

48 months

60 months

22.3232%

22.5020%

22.4150%

22.2311%

22.0077%

21.5273%

21.0533%

Any 2009 or older vehicle can use the Class 4 add-on rate of $15.00 per hundred per year. Here is the $15 add-on rate expressed as equivalent annualized percentage rates for common contract terms:

12 months
26.6226%

18 months
26.7540%

24 months
26.5783%

30 months
26.2964%

36 months
25.9759%

48 months
25.3155%

60 months
24.6845%

The OCCC also provides a month-by-month chart expressing the $12.50 and $15 add-on rates as equivalent annualized percentage rates for contracts with substantially equal monthly payments with terms ranging from 1 to 84 months.

If you have any questions concerning the financing of motor vehicles, please contact the Office of Consumer Credit Commissioner at 512.936.7600.

dividing line

link Texas Online

Texas Veterans Portal

Last Updated: Tuesday January 14, 2014 17:53