2012 Motor Vehicle Rate Chart
Effective January 1, 2012 to December 31, 2012 (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:
-
Any 2010 or newer vehicle
-
Any used motor vehicle not more than two years old
-
Any new or used heavy commercial vehicle not more than two years old
Used Vehicles
Any 2009 or 2008 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 2007 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 |
18 months |
24 months |
30 months |
36 months |
48 months |
60 months |
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.
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