There are a few different ways to get cash in AZ and one popular method involves using your car's registration as collateral for a loan. A vehicle registration loan, which is a unique form of borrowing in itself, is only available in Arizona. It is a short-term loan where your vehicle’s equity is the difference between the amount owed and the amount your vehicle is worth.
This essentially means that you are using your vehicle’s registration to get money, not its ownership right. Even after approval of the loan, you get to drive your car and pay off the lien on your car title any time you want, without any hidden fees and charges.
Also known as an "auto title loan”, a car title loan refers to a short-term loan using the borrower’s car as collateral, by handing over the title of the car to the lender until the amount is paid off.
It is a way of getting emergency cash immediately. Once you get an online title loan, you pay it off including simple as well as compound interest.
TITLE LOAN VS REGISTRATION LOAN IN ARIZONA:
- A title loan is applicable only if you are an outright vehicle owner. As long as the vehicle is owned outright, and you are listed as the owner of the car in a clear title sans any liens, you are eligible and will be approved.
- A registration loan does not require complete ownership of the vehicle and can be approved nonetheless.
- Car title loans are more similar to a traditional secured loan. Here, 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 doesn’t require owning the vehicle outright. Only the registration of the vehicle must be approved by the lender. The loan is paid based on the recent market value of the car and your income. Hence, no collateral is required.
- A car title loan often has additional charges and only loans huge sums of money.
- A vehicle registration loan has low interest rates and no hidden charges and penalties. You can offer small amounts of money and pay them off at your own pace within the given period of time.
- Firms offering online title loans are not open to people who are leasing or financing a car on monthly basis. Lenders here in Arizona consider that ineligible as a form of loan security. Most vehicles cannot be secured with an additional lien. This makes them reject numerous applications from borrowers who want some emergency cash.
- On the other hand, registration funding provides complete access to the short-term funds for Arizona residents. You have access to the quick cash you may need to resolve your financial issue.
- A car title loan takes a longer time to process and approve since it deals with a larger amount of money and lien of a car. As you're using the vehicle pink slip for collateral, there's quite a bit more for the lender to verify.
- A Reg loan comparatively takes way less time for approval. You can apply for a registration loan online. Go for a small amount and acquire it within 24 hours. The time period often depends on hours of operation for the Arizona Department of Transportation. 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
This type of online funding is an easy and convenient short-term loan. You can apply for title loans in AZ and registration loans all over the state by using our online application. Also, feel free to view the many various well-known and reputed websites that provide online funding. Compare this to how long it takes to get approved for other types of funding like a bank loan or personal loan. Those forms of borrowing can take days and even weeks to get approval as the underwriter will look to verify many documents.
To apply for an auto registration loan in Arizona, you must be at least 18 years of age and need to provide your Government ID, vehicle, vehicle registration, proof of income, and account details. Once your loan plea gets approved, you get the required cash in your account.
What Are The Laws In Arizona Regarding Registrations Loans
In Arizona, there are no specific laws regulating registration loans. However, there are laws in place that protect consumers from unfair lending practices and many of the same requirements for secured loans will be in place for AZ registration loans. For example, lenders cannot roll over or renew a registration loan more than three times. In addition, lenders are not allowed to extend the term of a registration loan beyond 12 months.
What Happens If I Default On A Registration Loan IN AZ
If you default on a registration loan in AZ, there are certain unique situations where the lender may take possession of your vehicle. Similar to a title loan, The lender will then sell the vehicle to repay the loan. If the sale of the vehicle does not cover the initial loan amount, you will be responsible for paying the remaining balance. With that, it's more than likely that your lender will want to work out an alternative payment arrangement to get you back to current on the registration loan.
These loans aren't backed by your car's title and it can be very hard to repossess a vehicle without them 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 registration loan default. Again, the ideal course of action here is to consult with your loan underwriter and work out an arrangement to get the payments back to current.
Can I Get A Registration Loan If My Car Is Already Registered?
Yes, you can get a registration loan even if your car is already registered or most important if you don't have the car's title. The process is the same as getting a standard unsecured loan - you'll need to fill out a hassle free application and show your monthly income. Once approved, you'll be able to use your car's registration as collateral for the loan. Even if you still owe money to your original lienholder or lender you can apply for a registration loan with a funding amount of around $1,000 in Arizona.
Do I Need To Go To The DMV To Get A Registration Loan?
No, you don't need to go to the DMV to get a registration loan. The application process can be completed over the phone, entirely online, or in person anywhere in Maricopa County. You'll simply need to provide your car's make, model, and year as well as your personal information such as your name, banking info and contact details. Once approved, you can get cash after showing proof that your vehicle is licensed and registered in AZ.
Registration Loan Default
All borrowers need to be aware and look out for a potential registration loan default If you are wondering whether you can be leasing a vehicle rather than just financing it, the answer is yes. As long as the registration is in your name (the person applying for the loan), the lending company will consider making an offer. This is because the registration loan differs from the title loan in that it does not take the value of the vehicle into consideration as the only deciding factor. Instead, it considers the employment and income details, and may even accept personal references.
Will the registration loan end up being close to the amount that online title loans offer? Actually, they are usually a bit smaller because of the simple fact that the title is not clean (i.e. the vehicle is unable to be used as traditional collateral). Either way, most lenders will do all they can to avoid the chance that you fall behind or even worse, risk losing your vehicle to a repossession. Contact a title loan company in Tempe to find out more about how they can help local residents avoid a loan default.
How To Pay Back A Registration Loan In Arizona
Since a registration loan is a short term loan, it must be paid back within the eligible period of time. There is no pressure and you can pay back the amount owed in short, manageable amounts within the given period of time. Failure to repay a title loan or a vehicle registration loan may lead to repossession of the car and negative marks on your credit.