12 PA Cons Stat § 6243 (2021)
2021 Pennsylvania Consolidated & Unconsolidated Statutes|Title 12 - COMMERCE AND TRADE|Chapter 62 - Motor Vehicle Sales Finance|Section 6243 - Finance charges

§ 6243. Finance charges.   (a) General rule.--An installment seller licensed under this chapter may charge, contract for, receive or collect a finance charge under this chapter on an installment sale contract covering the retail sale of a motor vehicle in this Commonwealth.  (b) Method of computation.--  (1) An installment seller may compute a finance charge authorized by this section by any method, if the charge does not exceed the applicable maximum percentage under subsections (d) and (e). (2) A finance charge under this section shall be computed: (i) On the principal amount financed as determined under section 6222(5)(vi) (relating to contents). (ii) At the annual rate indicated on a one-year installment sale contract. (iii) Proportionately on an installment sale contract that extends for a period that is less than or greater than one year. (3) A finance charge under this section may be computed on the basis of a full month for a fractional month period in excess of ten days and interest may continue to be charged during a period of time for which a late charge is also imposed.  (c) Manufactured homes.--If an installment sale contract involves a manufactured home, whether or not the sale on credit or loan is insured or guaranteed in whole or in part by the Federal Housing Administration pursuant to the National Housing Act (48 Stat. 1246, 12 U.S.C. § 1701 et seq.), the percentage established as a maximum finance charge for a manufactured home by regulation of the Federal Housing Administration shall govern.  (d) New motor vehicles.--  (1) Except as otherwise provided in this section, a finance charge for a new motor vehicle may not exceed the equivalent of 18% simple interest per year on the unpaid balance. (2) Except as provided in paragraph (3), a finance charge for a new motor vehicle having a purchase price of $10,000 or more and used primarily for a commercial purpose may not exceed the equivalent of 7.5% per year. (3) A finance charge may not exceed the equivalent of 10% per year for the following: (i) A new truck and truck tractor having a manufacturer's gross vehicular weight of 13,000 pounds or more. (ii) A new semitrailer and trailer designed for use in combination with a truck tractor.  (e) Used motor vehicles.--  (1) A finance charge for a used motor vehicle, of a model designated by the manufacturer during a year not more than two years prior to the year in which the sale is made, may not exceed the equivalent of 18% simple interest per year on the unpaid balance. (2) A finance charge for an older used motor vehicle, of a model designated by the manufacturer during a year more than two years prior to the year in which the sale is made, may not exceed the equivalent of 21% simple interest per year on the unpaid balance.  (f) Federally insured loans.--Subject to subsection (c), if a sale on credit or loan is insured or guaranteed in whole or in part by the Department of Veterans Affairs or another Federal department or agency, the laws or regulations that govern the Department of Veterans Affairs or other Federal department or agency regarding the maximum finance charge and rate of interest for the sale shall govern.    Cross References. Section 6243 is referred to in sections 6244, 6245 of this title.