Ohio Car Loan Laws

How much interest an Ohio car contract can carry

When a dealer arranges your loan, you sign a retail installment contract under Chapter 1317 of the Ohio Revised Code. Section 1317.061 lets the seller charge any rate the parties agree to, up to an annual percentage rate of 25%. Section 1317.06 offers older alternative formulas, which matter mainly for very small contracts.

A ceiling is not a typical price. To see what the top rate means, $20,000 over 60 months at 25% APR is $587.03 a month, about $15,222 in interest. Most buyers with fair or good credit pay much less, so check your own figures with the car payment calculator.

• Late charge. Nothing may be charged on a payment less than 10 days late. After that, the charge is 5 cents per dollar, up to $3 per installment (ORC 1317.06).
• Acceleration. In a consumer contract, the seller may not demand the whole balance because of a missed payment until that default has lasted at least 30 days.
• Payment schedule. Payments must be substantially equal, or no installment may be more than 50% larger than any other, unless the contract lets you refinance on terms at least as good.

Doc fees and sales tax at an Ohio dealership

• Documentary fee. ORC 4517.261 caps it at the lesser of 10% of the contract amount (not counting tax, title and registration fees or negative equity) or a dollar limit that began at $250. The dollar limit is adjusted for inflation every September and never goes down.
• Fee in writing. The doc fee must be stated in writing, and the Department of Public Safety publishes the current dollar limit, so ask the dealer to show you the figure.
• Sales tax. The state rate is 5.75%. You pay at the clerk of courts title office, and the total rate depends on your county.
• Trade-in credit. A trade-in lowers the taxed price only when you buy a new vehicle from a new-car dealer. On a used car, you pay tax on the full price.
• Title fee. The general certificate of title fee rose from $15 to $18 on January 1, 2026.

What happens if you fall behind in Ohio

Ohio does not require a warning before repossession. Once you are in default, the lender may take the car without a court order as long as it does not breach the peace. What Ohio adds is a set of rules after the car is taken, in ORC 1317.12 and 1317.16.

1. 1 Notice within five business days. The lender must send a notice that explains the default and itemizes what you must pay to cure it.
2. 2 Your right to cure. You have until 20 days after the repossession or 15 days after the notice is sent, whichever is later. You pay the missed installments, unpaid late charges, reasonable retaking costs and a deposit of two installments, then you get the car back. You can use this right only once per debt.
3. 3 Notice of sale. The sale must be public. At least 10 days before it, the lender must send notice by certified mail with the time, place and minimum price, and publish a notice in a local newspaper.
4. 4 The deficiency. You may owe any shortfall after the sale. A lender that sells without sending the cure notice cannot recover its retaking costs or get a deficiency judgment.

If you receive a cure notice, act on it quickly. Our guides to falling behind on payments and the balance left after a sale explain the next steps.

Where to check a lender and complain

The Division of Financial Institutions in the Ohio Department of Commerce oversees consumer finance companies and state-chartered banks and credit unions, and takes complaints about them. Payday and title-loan rules are on Lendmira's Ohio page.

Questions people ask