Tex. Fin. Code § 348.104 · Subchapter B. RETAIL INSTALLMENT CONTRACT
TIME PRICE DIFFERENTIAL FOR CONTRACT WITH EQUAL MONTHLY SUCCESSIVE PAYMENTS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A retail installment contract that is payable in substantially equal successive monthly installments beginning one month after the date of the contract may provide for a time price differential that does not exceed:
(1) the add-on charge provided by this section; or
(2) $25 if the add-on charge under Subdivision (1) is less than $25.
(b) The add-on charge is $7.50 per $100 per year on the principal balance for a new motor vehicle designated by the manufacturer by a model year that is not earlier than the year in which the sale is made.
(c) The add-on charge is $10 per $100 per year on the principal balance for:
(1) a new motor vehicle not covered by Subsection (b); or
(2) a used motor vehicle designated by the manufacturer by a model year that is not more than two years before the year in which the sale is made.
(d) The add-on charge is $12.50 per $100 per year on the principal balance for a used motor vehicle not covered by Subsection (c) that is a motor vehicle designated by the manufacturer by a model year that is not more than four years before the year in which the sale is made.
(e) For a used motor vehicle not covered by Subsection (c) or (d), the add-on charge is:
(1) $15 per $100 per year on the principal balance; or
(2) $18 per $100 per year on the principal balance if the principal balance under the retail installment contract does not exceed $300.
(f) The time price differential is computed on the original principal balance under the retail installment contract from the date of the contract until the maturity of the final installment, notwithstanding that the balance is payable in installments.
(g) If the retail installment contract is payable for a period that is shorter or longer than a year or is for an amount that is less or greater than $100, the amount of the maximum time price differential computed under this section is decreased or increased proportionately.
(h) For the purpose of a computation under this section, 16 or more days of a month may be considered a full month.
Notes and commentary — not statutory text
History
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 676 (H.B. 2438), Sec. 5, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 11, eff. September 1, 2011.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/FI/htm/FI.348.htm
- Text hash
- sha256 2339b4d99fcb0ea265ece66961b7b43724a5ef623b9c8d7312563a444b80b7ea
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 4 provisions
Provisions in this library whose text cites Tex. Fin. Code § 348.104. Each shows the citation as that text prints it.
Finance Code
- Tex. Fin. Code § 348.103TIME PRICE DIFFERENTIAL FOR RETAIL INSTALLMENT CONTRACT.Printed as Section 348.104, 348.105, or 348.106
- Tex. Fin. Code § 348.105USE OF OPTIONAL CEILING.Printed as Section 348.104 or 348.106
- Tex. Fin. Code § 348.115CHARGE FOR OTHER AMENDMENT.Printed as Section 348.104
- Tex. Fin. Code § 348.121AMOUNT OF REFUND CREDIT FOR OTHER CONTRACTS.Printed as Sections 348.104(f) and 348.106
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.