What is the highest a car dealer charge as an interest rate?

There are some legal limits on how much interest a car dealer can charge. In most states, the interest rate is "capped," which means that there is a limit on how high it can go. The cap varies from state to state, but it is usually around 18%. However, some states have no cap at all, which means that the interest rate can be as high as the dealer wants it to be. In those states, it is important to shop around and compare interest rates from different dealers before you buy a car.