Use your vehicle registration as part of a secured loan while continuing to drive your vehicle. Understand the lien, repayment terms and repossession risk before signing.
Arizona has no separate registration loan statute. These loans are written under the Motor Vehicle Time Sales Disclosure Act as secondary motor vehicle finance transactions — the same part of the law that governs title lending. Because the statute does not require the lender to hold the vehicle title, lenders can arrange vehicle-secured loans using the registration instead. That is the registration loan.
The practical consequence is worth stating plainly: the softer name does not come with softer terms. The rate ceilings, the disclosure requirements and the consequences of default are the same as on a title loan.
Ask your store associate directly: is a lien being placed on my vehicle, and what exactly triggers repossession? Then check that the answer appears in your Loan Agreement. Research by the Consumer Financial Protection Bureau has found that roughly one in five title loan borrowers eventually has their vehicle repossessed, so this is not a theoretical concern.
The vehicle requirement is the one thing that sets this apart from an unsecured loan.
Registration loans in Arizona are governed by the same statutory framework used for secondary motor vehicle finance transactions.
| Original loan amount | Maximum monthly rate |
|---|---|
| $500 or less | 17% |
| $500.01–$2,500 | 15% |
| $2,500.01–$5,000 | 13% |
If the loan is secured by your vehicle and you default, repossession may be possible. Ask exactly what secures the loan and what triggers default before you sign.
Compare registration and title loans side by side, then apply only if the payment and total cost fit your budget.