Registrations Loans In AZ - How Do They Work
There are a few ways to get cash for your vehicle, and one popular method involves using your car's registration as collateral for a loan. Vehicle registration loans are offered in Arizona and come with loan amounts of $500 or more.
This means you are using your vehicle’s registration to get the cash. You can still drive your car; there's no need to add the lender as a lienholder to the title. The main issue with a registration loan is that your lender will place a lien on the vehicle registration document with the MVD. Of course, this doesn't mean they are a first lienholder on the vehicle itself. But it does make it difficult to renew your vehicle registration info if there's a lien on that registration and you're behind on the payments!
TITLE LOAN VS REGISTRATION LOAN IN ARIZONA:
- A title loan is only available to registered owners of the vehicle. As long as the car is owned outright, and you are listed as the owner in a clear title sans any liens, you are eligible and will be approved.
- A registration loan does not require complete vehicle ownership and can be approved nonetheless.
- Car title loans are more similar to traditional secured loans. The lender will keep your car title as secure collateral until the borrowed money is paid back. Hence, the borrower becomes the lien holder, which means he/she has absolute ownership over the car.
- An unsecured loan, on the other hand, does not provide complete ownership to the lender. Even to apply, one isn’t required to own the vehicle outright. Only the registration of the car must be approved by the lender. The loan is paid based on the current market value of the vehicle and your income. Hence, no collateral is required.
- Vehicle registration loans have lower interest rates than some unsecured lending offers. You can pay them off at your own pace within the repayment term.
- 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 deal with 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, which can take a day or longer. If you're using the vehicle pink slip for collateral, there's quite a bit more for the lender to verify.
- A registration loan comparatively takes way less time for approval. You can apply for a registration loan online. 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. Check on their hours and policies before you go. Hence, you can get out of your financial rut faster and easier.
How To Get A Registration Loan & What Are The Requirements
You can apply for title loans in AZ and registration loans all over the state using our online application or call us at 623-526-5001 This type of loan is based on you having valid registration documents and most loans are underwritten in less than an hour. Compare this to how long it takes to get approved for a bank or personal loan, and you'll see how much easier it is to get a registration loan versus an unsecured loan that requires credit checks and dozens of documents.
To apply for an auto registration loan in Arizona, you must be at least 18. You must provide your government ID, proof of vehicle ownership, up-to-date vehicle registration, proof of income, and any references if required. Once your loan application is approved and you sign the documents, the cash can be sent by direct deposit to your bank account in 24 hours or less!
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 same 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. Please review our lending laws and regulations before you move forward with a lender.
Since a registration loan is short term, it's often repaid in 3 to 24 months. There is a set repayment term, and you can repay the amount owed in manageable monthly payments or all at once if you can pay more the minimum.
What Happens If I Default On A Registration Loan
If you default on a registration loan, there are certain unique situations where the lender may repossess your vehicle.
Your car's title doesn't back these loans, and it can be challenging to 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 anything can proceed with a default.
Registration Loans Without The Car's Title
Anyone can get approved for a registration loan without the car's title. The process is similar to applying for an unsecured loan, as you don't need the pink slip, and there are no collateral requirements to secure the loan.
Even if you still owe money to your original lender, you can apply for a registration loan with a funding amount of around $1,000 in Arizona.
Registration Loan Default
You'll typically default on a registration loan if you miss two concurrent payments. That means your lender can take legal action or seek other ways to collect the amount owed.
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 of missing future payments. They'll likely work with you on a repayment plan to get you back on track.
Apply For A Registration Loan With Desert Title Loans
Contact Desert Title Loans at 623-526-5001 for more information about our registration loans or if you need help repaying your loan with another lender. We will work with you to get new repayment terms and possibly a lower interest rate! If you're looking for a new registration loan, we've got you covered and will work to get you an initial loan estimate with a loan amount and repayment term!
