Registrations Loans In AZ - How Do They Work
There are a few ways to get cash for your vehicle, and one popular way to get same-day funds involves using your car's registration as collateral for a loan. Vehicle registration loans are offered in Arizona and have loan amounts of $500 or more. These loans can be authorized and funded within just a few hours, and minimal paperwork is required. Essentially, 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 with the Arizona MVD.
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 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 a 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 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 vehicle owners who have a paid off car title. You're eligible for a title loan if the car is owned outright and you are listed as the owner on the pink slip. Title loans come with much higher loan amounts than most registration loans.
- 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 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 a repayment term that typically lasts 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, which can take a day or longer. If you're using the vehicle pink slip as collateral, there's quite a bit more for the lender to verify.
- A registration loan comparatively takes way less time to approve. 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 a registration loan in Arizona using our online application or by calling us at 623-526-5001. This type of loan is based on your 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 and have a valid driver's license or government ID. You must show proof that your vehicle has active registration with the DMV and proof of income of at least $1,000 monthly, and most lenders require comprehensive insurance coverage. 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! 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, and you can also opt for a money order or personal check.
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 our lending laws and regulations covering both registration and title loans in Arizona.
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 all at once if you can pay more than the minimum.
What Happens If I Default On A Registration Loan
If you default on a registration loan, you'll face a similar situation as if you had fallen behind on an unsecured loan. In this case, you can expect threats of wage garnishments and other court actions that are similar to personal loan defaults. That makes registration loans so much more appealing than title loans that use your vehicle 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 anything can proceed with a default.
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 of missing 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, and that's what makes these loans so enticing to someone who needs fast cash but doesn't have a paid off vehicle! The approval process is similar to getting an unsecured loan, as you don't need the pink slip, and there are no collateral requirements to secure the loan. Registration loans without the car's title are the main way people get cash in Arizona when they don't have a lien free vehicle and 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? In this scenario, it's possible to get with either option, and it's up to you to weigh the benefits of each. 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 range from $100 to $4,000 in Arizona and we can approve your application even if your car isn't paid off or titled in your name! We'll tell you how much you can borrow using your car's registration as security within minutes. Our registration loans feature flexible repayment options with minimal credit requirements. Call us now to see how much you can borrow!
