Registrations Loans In AZ - How Do They Work
There are several ways to obtain cash for your vehicle, and one popular option involves borrowing up to $4,000 by using your car's title as collateral for a loan. Vehicle registration loans are primarily offered in Arizona, with loan amounts starting at $100. These loans can be pre-approved within a few hours, requiring minimal paperwork, and you don't have to deal with a vehicle inspection. You stand a decent chance of being approved for a registration loan if you live in Arizona and have a vehicle with up-to-date registration.
You can still drive your car with a registration loan; there's no need to add your lender as a lienholder to the title, and unlike a car title loan, you don't need to worry about losing your vehicle to repossession if you default on the payments. The main issue with a registration loan is that your lender will place a lien on the vehicle registration with the MVD. This doesn't mean they are a first lienholder on the vehicle itself, and there's never a chance they can repossess or claim ownership of your car. However, it does make it difficult to renew your registration if there's a lien on record with the MVD.
Apply online with Desert Title Loans or call us at 623-526-5001 to see how much you can get with a registration loan. The process to get a quote is straightforward, and we'll let you know in less than 30 minutes how much money you qualify for.
TITLE LOANS VS REGISTRATION LOANS IN ARIZONA:
- A title loan is only available to registered vehicle owners who have a paid off car title. You're eligible for a title loan if you are listed as the sole owner on the vehicle's title. Title loans typically offer significantly higher loan amounts than most registration loans, but as you're putting up the vehicle as collateral, you run the risk of losing it if you default on the loan.
- A registration loan does not require complete vehicle ownership and can be approved even if you have a lienholder on the car's title.
- Registration loans typically have lower interest rates than auto equity loans. You can pay them off at your own pace with a repayment term between 2 and 6 months.
- Lenders offering online title loans will spend time verifying the vehicle exists and must confirm the car's pink slip is lien free.
- Car title loans take longer to process and approve since they involve more money and add a lienholder to the pink slip. You must add the lender as a lienholder to your car's title at the Arizona MVD. If you're using the vehicle pink slip as collateral, there's much more for the lender to verify.
- A registration loan comparatively takes way less time to underwrite and approve. Apply for an online registration loan with Desert Title Loans and get pre-approved in 30 minutes or less! The time to fund your loan often depends on hours of operation for the Arizona Department of Transportation, as we need to verify your updated registration details.
How To Get A Registration Loan & What Are The Requirements
Start your application for an online registration loan with Desert Title Loans or call us at 623-526-5001. Your loan can be underwritten primarily with your registration paperwork from the MVD and most loan approvals are underwritten in less than an hour. Compare this to the time it takes to get approved for a traditional loan, and you'll see how much easier it is to obtain a registration loan compared to an unsecured loan that requires a credit check and numerous documents.
To apply for an auto registration loan in Arizona, you must be at least 18 and have a valid driver's license or government ID. You must show proof that your vehicle has up to date registration with the MVD. Most lenders require proof of a monthly income of at least $1,250, along with comprehensive insurance coverage for the car. Once your loan application is approved and you have signed the documents, the cash can be sent by direct deposit to your bank account within 24 hours or less. You don't always need a checking or savings account to get approved for a registration loan, and some lenders in Phoenix and Tucson offer in-store cash pick up.
The Laws In Arizona Regarding Registration Loans
Arizona has no specific laws regulating how much you can borrow with registration loans. However, laws protect consumers from unfair lending practices, and many of the exact requirements for title loans and other cash advances are in place for registration loans. For example, lenders cannot roll over or renew a registration loan more than three times and can't extend a repayment term beyond 12 months. Before moving forward with a lender, review Arizona's lending laws and regulations, which cover registration and title loans.
Since a registration loan is short term, it's often repaid in 2 to 6 months. That means there's not much of a need for restrictions on monthly payments or loan amounts, as most registered lenders in Arizona offer registration loans for less than $4,000. There is a set repayment term, and you can repay the amount owed in manageable monthly payments or in a single payment if you can pay more than the minimum.
What If I Fall Behind On My Registration Loan Payments?
If you default on a registration loan, you'll face a similar situation as if you had fallen behind on an unsecured loan. You can expect threats of wage garnishment and other court actions similar to those associated with personal loan defaults. That makes registration loans much more appealing than a title loan, which requires a paid off car or truck as collateral.
Your car's title doesn't back these loans, and a licensed lender cannot repossess a vehicle without it being listed on the pink slip. Your lender would need to secure or attach a lien to your car and then place a claim on the vehicle. Even if this were to happen, the original lienholder would still need to be paid off in full before any proceeding with a default can take place.
The worst thing that can happen if you default on a registration loan is that your lender can make it difficult to renew your registration. That doesn't mean you won't be able to renew with the MVD the next time it comes due, but you'll have trouble selling a vehicle with an active registration.
Defaulting on registration differs from defaulting on a title loan as there is no collateral backing up the loan, and your lender or third-party bill collector can't take the vehicle or threaten you with jail time or other criminal actions. However, you still need to avoid falling behind on the monthly payments. Work with your lender if there's a chance you may miss future payments. They'll likely work with you on a repayment plan to get you back on track.
Registration Loans Without The Car's Title
Anyone can get approved for a registration loan without the car's title! The approval process is similar to obtaining an unsecured loan, as you don't need the title to your vehicle, and there are no collateral requirements to secure the loan. These loans are possible even with a cosigner or lienholder on your pink slip.
Do you have a paid off vehicle but still prefer a registration loan over a car title loan in Arizona? Yes, you can borrow more with a title loan, but a registration loan may be your best bet even if your car is fully paid off, as you don't need to worry about having your vehicle repossessed.
Apply For A Registration Loan With Desert Title Loans
Contact Desert Title Loans at 623-526-5001 for more information about our registration loans. Registration loans in Arizona range from $100 to $4,000, and we can pre-approve your application even if your car isn't paid off or titled in your name. Online registration loans feature flexible repayment options with minimal credit requirements. Contact us now to find out how much you can borrow!
