How Vehicle Registration Loans Work in Arizona

What You Need to Know

According to a recent study, only 37% of Americans have $1,000 in savings to cover a four-figure emergency. Unfortunately, most emergencies cost at least $1,000 if not more. If you’re not in this lucky percentile, then you have two options; obtain a loan or apply for a credit card.

Credit cards and traditional bank loans can take weeks for an approval, which means that they’re not ideal for most emergency situations. That makes short-term registration loans a great choice for those who find themselves in a pinch for time or who don’t want to give out all of their personal credit information.

Registration loans are only available in the state of Arizona. If you don’t reside in Arizona, a title loan may be an alternative.

What are Registration Loans?

Many people often confuse registration loans with auto title loans. While they have one thing in common (require that you have a car), they are otherwise completely different. For starters, vehicle registration loans are usually for a smaller amount than a typical title loan would be. Additionally, you’re only required to have a car registered in your name instead of the title. This means that you can take out a registration loan even if you’re still paying off a financed vehicle. Most importantly, these loans are only available to Arizonians.

A recent CNN exposition stated that 43% of Americans are currently paying off an auto loan, which means that title loans are off limits for them. By taking out an online registration loan, they are able to get the short-term cash that they need to handle most of the emergencies that happen in day-to-day life.

How do Registration Loans Work?

The first step is to find a title-lending agency in your area or to use an online brokerage service to find competitive rates. Unlike traditional bank loans or credit cards, car registration loans are approved within hours, and in most cases, you can get the money the very same day. To top it all off, you don’t need to provide any information on your credit history or pre-existing loans.

Use online portals like Google, Yelp, or YellowPages to find locally reviewed lenders near you. Be wary of fake reviews.

You will still be able to drive your vehicle while you are paying off the loan, and most repayment periods are twelve months or less. However, it’s worth noting that the majority of lenders won’t penalize you for early payment, which means that you can pay it off quickly and avoid some of the hefty interest rates and fees.

Online registration loans and short-term loans, in general, have a rather negative connotation. Taking out a registration loan is nothing to be afraid of, though, as long as you can make your payments on time. The reason why some borrowers have a bad experience with short-term loans is that they borrow more than they need, and fail to make their minimum payments.

Lender Requirements

There are a couple of individual requirements that each particular registration loan operation may ask you to meet, but as a general rule you won’t have to jump through many hoops at all to get your hands on the money that you need with your registration as collateral. Most lenders will require the following items in order to process your registration loan application:

  • Valid Arizona drivers’ license
  • Your vehicle’s registration
  • Social Security card
  • Proof of Income

As we highlighted above, one of the biggest advantages of registration loan is that they have a lot less hurdles to clear. The fact that these nontraditional loans have so few requirements makes them very attractive. This is especially true for folks with less than picture-perfect credit, limited income, or an income source that is fixed.

Keep in mind that different lenders will have different requirements. Generally, the three that we highlighted above are going to be the “industry-standard” and the only real barrier to taking advantage of these loans.

Comparing the Alternatives

Registration loans and title loans are some of the most popular forms of short-term lending opportunities available today. They do, as stated previously, differ in a couple of major ways. It’s important that you realize exactly what that difference is before you dive right in.

 Registration LoanTitle Loan
Title Required?
Income Required?
Registration Required?
Insurance Required?
SSN Card Required?
Max Loan Amountusually $2,500usually $50,000+

Car title loans are going to give you a unique opportunity to get a collateral loan based off the value of the vehicle that you own out right. To qualify for this type of loan, you should have your title, and are able to put the title up as collateral. You will be able to take a loan out for up to 70% of your vehicle’s value.

Registration loans, on the other hand, don’t require a lien-free title. You’ll be able to use the money that you have already paid off as collateral towards your loan. Basically, if you have your title in hand, an auto title loan is your best option, otherwise stick with a car registration loan.

Arizona Registration Loan Laws

Registration loans are governed under statute 44 of Motor Vehicle Times Sales Disclosure Act in Arizona. Although these loans have been a bit more scrutinized than other lending solutions, they are perfectly legal in the eyes of the law.

Like any other financial industry, there are predatory organizations that give the industry a bad reputation. Just as major banks caused the real estate collapse in 2008, there are certainly some less than ethical short-term lenders out there giving these loans a bit of a bad rap.

This is why it’s important for you to verify that you’re doing business with legitimate and reputable organizations. The research and due diligence you do will make or break your overall experience.


Not all short-term lenders are created equally (obviously), and it’s a good idea that you look into the background, the history, and the reputation of these lending organizations before you choose to sign on the dotted line. Lenders are always going to promise the moon and the stars when it comes to their service. But you’ll never know whether or not one company is the right one without doing research first.

For the financially responsible individual, taking out a registration loan is one of the easiest, most intuitive means of getting the money that you need when you need it. No long waits, just the help you need without the hassle.


“Wrong Way: Wrecked by Debt”, Consumer Federation of America, 2016,