New Hampshire Car Loan Laws

What a New Hampshire car contract may charge

The Retail Installment Sales of Motor Vehicles chapter, RSA 361-A, governs the retail installment contract you sign when a dealer arranges the loan, and it also covers direct loans from finance companies. It does not set a maximum APR. The rate is whatever you and the creditor agree to, so the number on the contract is the one to question and compare.

• Late charge. A delinquency charge may not exceed 5% of the installment that is late, and stacking late fees on top of one another is banned.
• Prepayment. A contract with a term under six years may not charge you a penalty for paying it off early.
• Interest after repossession. A clause that keeps interest running after the car is repossessed is not allowed.
• Complaints notice. The contract itself must tell you that you can file a complaint with the banking commissioner.

Without a rate cap, credit shopping matters more. A preapproval from a bank or credit union gives you a number to hold up against the dealer's offer; our guide to getting preapproved shows how.

Fees and taxes when you buy

• No sales tax. New Hampshire does not tax the sale of a car, so the trade-in question that matters in other states does not come up here.
• Title fee. The title application costs $25. A New Hampshire dealer sends it to the Division of Motor Vehicles with the paperwork.
• Registration. You register at your town or city clerk, which collects the local and state registration fees.
• Doc fee. State law sets no limit on the dealer's documentary fee, so ask for it as a written line item before you negotiate.

Falling behind and repossession in New Hampshire

Since July 1, 2024, RSA 361-A:21 has required a written warning before a repossession starts. Banks and credit unions do not need a license under the chapter, but they must follow the same default and sale rules in RSA 361-A:14 to 361-A:23.

1. 1 Notice of default. The creditor must mail a notice headed "Notice of Default" no sooner than 10 days after you default (RSA 361-A:21).
2. 2 Your chance to cure. The notice gives a date 21 days after it was mailed. If you pay the amount due by then, you are no longer in default and the contract goes on as before.
3. 3 Repossession. If you do not cure, the creditor may sue for the debt or take the car. The notice also says you can get the car back by paying the full debt plus reasonable expenses within 20 days after it is taken.
4. 4 Notice of sale. Before selling, the creditor must send a notice of disposition that describes the sale, any deficiency you may owe and the amount needed to redeem (RSA 361-A:22).
5. 5 The accounting. After the sale the creditor works out the surplus or deficiency. If money is left over for you, it must send the figures and the surplus within 21 calendar days (RSA 361-A:23).

The law does not cap a deficiency, so a low sale price can still leave you owing money. Our guides to falling behind on payments and repossession walk through what to do at each stage.

Where to check a lender and complain

Dealers that arrange financing and the companies that lend, buy or service car contracts need a license from the Banking Department, so you can ask the department whether a company holds one before you sign. Title-loan and small-loan rules are covered on Lendmira's New Hampshire page.

Questions people ask