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 only offered in Arizona and provide loan amounts of $500 or more.
This means you are using your vehicle’s registration to get money, not its ownership right. You can still drive your car, and there's no need to add the lender as a lienholder to the title.
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 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 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 current market value of the car 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 loana take longer to process and approve since it deals with more money and adds a lienholder to the pink slip. As 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. Go for a small amount and acquire it within 24 hours. The time to fund your loan 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 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 a bank 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. You must 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.
The Laws In Arizona Regarding Registrations Loans
In Arizona, there are no specific laws regulating registration loans. However, laws protect consumers from unfair lending practices, and many of the exact 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 and can't extend the repayment term beyond 12 months.
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 tough 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 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 default on a registration loan if you miss two payments. That means your lender can take legal action or seek other ways to collect the amount owed.
A registration loan default differs from a title loan default, and your lender can't take the vehicle, but you still need to avoid falling behind on the monthly payments.
Repay A Registration Loan In Arizona
Since a registration loan is a short term, it must be paid back within a few months. There is typically a set repayment term, and you can repay the amount owed in manageable amounts.
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!