What a title loan costs — before Delaware’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Delaware
- Rate cap
- No statutory APR/interest cap on licensed title loans. Repayment (including rollovers) may not exceed 180 days; after default and workout periods, interest drops to the legal rate (Del. Code tit. 5, ch. 22, subch. V, §§ 2251–2260).
- Key law
- Delaware Licensed Lenders Act — Title Loans, Del. Code tit. 5, ch. 22, subchapter V (§ 2250 et seq.).
- Enforcement
- The Delaware Office of the State Bank Commissioner licenses title lenders. Statute mandates a one-business-day right to rescind, a workout-agreement offer before repossession, and bars deficiency judgments after sale, but imposes no rate ceiling.
Delaware sets no cap on the cost of a car-title loan and no maximum loan amount; title loans are limited only by a 180-day maximum repayment period (Del. Code tit. 5, § 2254).
What it means for a Delaware borrower
Delaware allows car title loans at whatever rate the lender sets — there is no interest cap, so APRs commonly run into the triple digits. The loan and any rollovers must be repaid within 180 days. If you default, the lender must offer a workout plan before repossessing and cannot pursue you for a deficiency after selling the car.
Before you borrow in Delaware
- Check whether the lender is licensed in Delaware — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Delaware attorney general and the CFPB.
- Ask whether the balance is even collectable under Delaware law before you pay a collector.
Cheaper first — try these before a title loan in Delaware
Title Loans and tribal lenders in Delaware
Many online lenders that market title loans to Delaware residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Delaware residents and how state law applies to them, see the Delaware tribal-lending page.
Tribal loans in Delaware →Frequently asked questions
Are title loans legal in Delaware?
In Delaware, single-payment auto title loans are legal and enforceable, commonly around 300% APR, with the car as collateral. The speed is real; so is the repossession risk. Check the total cost and never pledge the car you rely on to get to work.
What is the maximum title loan rate in Delaware?
No statutory APR/interest cap on licensed title loans. Repayment (including rollovers) may not exceed 180 days; after default and workout periods, interest drops to the legal rate (Del. Code tit. 5, ch. 22, subch. V, §§ 2251–2260).
What can I do about a title loan I already have in Delaware?
Delaware allows this lending, so the loan is generally enforceable — but you can still revoke ACH authorization in writing, avoid taking a second loan to cover the first, and file a complaint with the Delaware attorney general or the CFPB if the lender breaks the rules.