Florida Statutes

Fla. Stat. § 520.08 (2025)

Finance charge limitation.

✓ 2025 Florida Statutes — current through the 2025 Regular Session

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520.08 Finance charge limitation.—

(1) Notwithstanding the provisions of any other law, the finance charge, exclusive of insurance, shall not exceed the following rates:

(a) Class 1. Any new motor vehicle designated by the manufacturer by a year model not earlier than the year in which the sale is made—$10 per $100 per year.

(b) Class 2. Any new motor vehicle not in Class 1 and any used motor vehicle designated by the manufacturer by a year model of the same or not more than 2 years prior to the year in which the sale is made—$11 per $100 per year.

(c) Class 3. Any used motor vehicle not in Class 2 and designated by the manufacturer by a year model not more than 4 years prior to the year in which the sale is made—$15 per $100 per year.

(d) Class 4. Any used motor vehicle not in Class 2 or Class 3 and designated by the manufacturer by a year model more than 4 years prior to the year in which the sale is made—$17 per $100 per year.

(2) Such finance charge shall be computed on the amount financed as determined under s. 520.07(2) on contracts payable in successive monthly payments substantially equal in amount. Such finance charge may be computed on the basis of a full month for any fractional-month period in excess of 10 days. A minimum finance charge of $25 may be charged on any retail installment transaction.

(3) When a retail installment contract provides for unequal or irregular installment payments, the finance charge may be at a rate which will provide the same yield as is permitted on monthly payment contracts under subsections (1) and (2) having due regard for the schedule of payment.

(4) Any holder may purchase or acquire or agree to purchase or acquire from any seller any contract on such terms and conditions as may be agreed upon between them. Filing of the assignment, notice to the buyer of the assignment, and any requirement that the holder maintain dominion over the payments or the motor vehicle if repossessed shall not be necessary to the validity of a written assignment of a contract as against creditors, subsequent purchasers, pledgees, mortgagees, and lien claimants of the seller. Unless the buyer has notice of the assignment of her or his contract, payment thereunder made by the buyer to the last known holder of such contract shall be binding upon all subsequent holders.

(5) The provisions of subsection (1) shall not apply to any retail installment contract for the purchase of a mobile home, titled as a motor vehicle, when such contract is entered into pursuant to a commitment to guarantee issued by the United States Department of Veterans Affairs or pursuant to a commitment to insure issued by the Federal Housing Administration.

(6) As amended by chapter 79-592, Laws of Florida, chapter 79-274, Laws of Florida, which amended paragraph (1)(a):

(a) Shall apply only to loans, advances of credit, or lines of credit made on or subsequent to July 1, 1979, and to loans, advances of credit, or lines of credit made prior to that date if the lender has the legal right to require full payment or to adjust or modify the interest rate, by renewal, assumption, reaffirmation, contract, or otherwise; and

(b) Shall not be construed as diminishing the force and effect of any laws applying to loans, advances of credit, or lines of credit, other than to those mentioned in paragraph (a) of this subsection, completed prior to July 1, 1979.

History.—s. 7, ch. 57-799; s. 7, ch. 59-456; s. 3, ch. 69-370; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 1, ch. 78-312; ss. 5, 15, ch. 79-274; s. 1, ch. 79-592; s. 21, ch. 80-256; s. 2, ch. 81-318; ss. 5, 35, 36, ch. 90-103; s. 4, ch. 91-429; s. 29, ch. 93-268; s. 688, ch. 97-103.

Notes of Decisions

Cited in 9 cases (1 in the last 5 years), 1963–2022 · leading case: Corcoran v. TranSouth Fin. Corp. (In Re Corcoran), 268 B.R. 882 (Bankr. M.D. Fla. 2001).

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Corcoran v. TranSouth Fin. Corp. (In Re Corcoran), 268 B.R. 882 (Bankr. M.D. Fla. 2001). · cites it 19× “The Issue Whether the contract includes a finance charge greater than that allowed by § 520.08, Florida Statutes, depends on the method of calculating the maximum finance charge allowed under that statute.”

Williams v. Delray Auto Mall, Inc., 916 F. Supp. 2d 1294 (S.D. Fla. 2013). · cites it 6× “Second, Defendants assert that the finance charge incurred by Williams is not in excess of the limitations expressed in Fla. Stat. § 520.08 (1). Additionally, Defendants’ Motion contains a detailed mathematical formula which allegedly demonstrates that they have not exceeded…”

Reserve Ins. Co. v. Gulf Florida Terminal Co., 386 So. 2d 550 (Fla. 1980). “031 (consumer financing not to exceed ,500); § 520.08 (motor vehicle sales finance); § 520.”

Nolden v. Summit Fin. Corp., 244 So. 3d 322 (Fla. 4th DCA 2018). · cites it 6× “Rules of Statutory Construction Compel the Conclusion That the Legal Interest Rate Set Forth in Chapter 520 Applies to This Transaction, and Not the 18% Interest Rate Contained in the Usury Statute Section 520.08 identifies four classes of vehicles and sets forth a sliding scale…”

Maroone Chevrolet, LLC d/b/a Maroone Chevrolet v. German Alvarado (Fla. 4th DCA 2022). · cites it 9× “976 on the Second Truck; 3) violation of the Florida Motor Vehicle Retail Sales Finance Act section 520.08 on the First Truck and violation of section 520.”

Adrianne Nolden v. Summit Fin. Corp. (Fla. 4th DCA 2018). · cites it 6× “Rules of Statutory Construction Compel the Conclusion That the Legal Interest Rate Set Forth in Chapter 520 Applies to This Transaction, and Not the 18% Interest Rate Contained in the Usury Statute Section 520.08 identifies four classes of vehicles and sets forth a sliding scale…”

Gen. Fin. Corp. v. Carvajal, 23 Fla. Supp. 25 (Dade Cty. Sm. Cl. Ct 1964). · cites it 6× “Defendant contends that the Act in question requires that the finance charge be computed on the basis of descending balances, and thus the aforementioned conditional sales contract exceeds the maximum permitted under §520.08(1), Class 1. Plaintiff contends that the finance…”

Taylor v. First Nat'l Bank of Miami, 270 So. 2d 379 (Fla. 3d DCA 1972). · cites it 2× “§ 520.08 Fla.Stat., F.S.A. provides: “(1) Notwithstanding the provisions of any other law, the finance charge, exclusive of insurance, shall not exceed the following rates: } }5 '¿¡l }{ Jt “(c) Class 3.”

Gen. Fin. Corp. v. Emanuel, 21 Fla. Supp. 175 (Dade Cty. Sm. Cl. Ct 1963). “, a wilful violation of §520.08, F.S., by the lender bars the lender from recovering any finance charges, and delinquent or collection charges on the contract.”

— 520.08(1) — 2 cases

Corcoran v. TranSouth Fin. Corp. (In Re Corcoran), 268 B.R. 882 (Bankr. M.D. Fla. 2001). “The Issue Whether the contract includes a finance charge greater than that allowed by § 520.08, Florida Statutes, depends on the method of calculating the maximum finance charge allowed under that statute.”

Gen. Fin. Corp. v. Carvajal, 23 Fla. Supp. 25 (Dade Cty. Sm. Cl. Ct 1964). “Defendant contends that the Act in question requires that the finance charge be computed on the basis of descending balances, and thus the aforementioned conditional sales contract exceeds the maximum permitted under §520.08(1), Class 1. Plaintiff contends that the finance…”

— 520.08(1)(4) — 1 case

— 520.08(1)(b) — 1 case

Maroone Chevrolet, LLC d/b/a Maroone Chevrolet v. German Alvarado (Fla. 4th DCA 2022). “976 on the Second Truck; 3) violation of the Florida Motor Vehicle Retail Sales Finance Act section 520.08 on the First Truck and violation of section 520.”

— 520.08(1)(c) — 1 case

— 520.08(1)(d) — 2 cases

Nolden v. Summit Fin. Corp., 244 So. 3d 322 (Fla. 4th DCA 2018). “Rules of Statutory Construction Compel the Conclusion That the Legal Interest Rate Set Forth in Chapter 520 Applies to This Transaction, and Not the 18% Interest Rate Contained in the Usury Statute Section 520.08 identifies four classes of vehicles and sets forth a sliding scale…”

Adrianne Nolden v. Summit Fin. Corp. (Fla. 4th DCA 2018). “Rules of Statutory Construction Compel the Conclusion That the Legal Interest Rate Set Forth in Chapter 520 Applies to This Transaction, and Not the 18% Interest Rate Contained in the Usury Statute Section 520.08 identifies four classes of vehicles and sets forth a sliding scale…”

— 520.08(2) — 2 cases

— 520.08(l)(d) — 1 case

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