AZ Registration Loan Laws

Need Quick Cash? Understanding Arizona’s Auto Title Loan Laws

If you’re like the majority of Americans and in need of emergency cash from time to time, then you could really benefit from hearing about car title loans. A car title loan can likely be obtained for quick cash if you have a valid title for your vehicle – whether that vehicle is a car, motorcycle, or truck. Even an RV would potentially be grounds for obtaining a car title loan in Arizona.

Secret to Car Title Loans

The secret to making a car title loan work is committing to making your payments ahead of schedule. That way, you’ll be able to continue to keep driving around in your current vehicle and have extra cash set aside for emergency payments or buying the essentials. Another thing to understand about title loan laws in the state of Arizona is that you will have to contend with the state regulations outlined below and federal guidelines as well.

Legitimacy of Car Title Registration Loans in Arizona

These certainly aren’t shady loans, however. In the state of Arizona, car title loans enjoy a great reputation and are completely legal. In fact, Arizona’s Department of Financial Institutions individually approves title loans since that’s the state agency entitled to make the judgement as to whether the loaner is legitimate and whether the person receiving the loan can reasonably be expected to pay it back on time.

Unlike payday loans for which the interest rates can rise to unsustainable levels, the state of Arizona has strict limits for how much interest these secondary motor finance companies can exact against consumers. The interest limits for auto title loans are outlined in section 44-291(G) of the Arizona legal code. The good news for consumers is that auto loan companies may not exceed 17 percent interest on loans under $500, and the interest rates go down from there as the principal loan amount goes up.

car registration loans az

According to, vehicle title loans more than $500 but less than $2,500, consumers can expect to pay no more than 15 percent in interest for their auto title loan. For auto title loans between $2,500 and $5,000, consumers can expect to pay no more than 15 percent in interest before the loan is repaid. For auto title loans in excess of $5,000, consumers shouldn’t pay more than 10 percent, which is really an exceptional rate when you stop to think about it.

Securing a Contract for an Auto Title Loan

Arizona’s aforesaid section 44 – in this case, section 44-287 of the Arizona legal code – says that the auto title loan should include the name of the seller and the buyer. A verbal description of the car, truck, van, etc. should also be a part of the description in the loan. The company extending the loan should also include the financing rate, which can’t exceed the interest rates per specific loan amounts outlined above. Monthly and/or annual financing information should be included in the loan’s description and printed on the loan itself.

What Happens If You Default?

Arizona protects consumers taking out car title loans such that those who’ve taken out can usually negotiate a loan extension directly with the auto title loan company. Technically, however, the creditor may seize your vehicle if you’ve taken out an auto title loan and the loan itself empowers the auto title loan company to seize the vehicle should repayment not occur in a timely fashion or if multiple interest payments are missed.

Failing to maintain vehicle insurance throughout the duration of the loan may also be grounds for defaulting on the loan, so check with your auto title loan company and make sure that you have valid vehicle insurance in the state of Arizona. Contact your auto title loan company if you think that keeping your insurance current is a precondition for keeping the loan intact and avoiding default. A respectable auto title loan company will happily answer questions and address any concerns that you have in a timely fashion.

Loan Default Can Lead to Repossession

Auto title loan companies are entitled to breach the peace, as Arizona law phrases it. Arizona law empowers auto title loan companies to repossess the vehicle if default has occurred. The creditor still has to provide a notice to the person who took out the loan before repossessing the vehicle, but a court order is not required. Consumers should do their best to repay their auto title loan on time and at the appropriate interest rate. Auto title loans companies are reputable, lawful creditors that help thousands of cash-strapped consumers make ends meet.