Registration Loans - How They Work And What To Know

Registration loans are a great way to borrow money when facing emergency expenses or bills that are simply getting out of control. They are designed especially for people who want quick cash but don't own a vehicle outright or have the credit rating most lenders require. Borrowers don't need good credit because your vehicle's registration secures these loans.

Auto Registration loans are also different from car title loans because you don't need to give a lender the actual vehicle title as collateral. Instead, you hand over the pink slip, which is collateral for a registration loan!


What Is Typically Required For Registration Loans?

To qualify for a registration loan, you'll need your vehicle's registration information, proof of income, and proof of vehicle insurance coverage. As of 2024, registration loans are mostly offered in Arizona. Still, there seems to be a focus on allowing similar financing offers in a few other states as we move through the year.

Arizona is the primary state where registration loans are offered, so most lending requirements are specific to AZ. Your lender must follow all State laws and regulations that regulate short term lenders. You also need to show a valid Arizona ID(which you can quickly get that same day from any Arizona MVD Office) - and proof of insurance to let the lender know they're covered if something were to happen to your vehicle.


A Ford that can be used for a registration loan.


How Much Money Can Someone Get With Registration Loans In Arizona?

Customers can borrow $500 with a registration loan, and that's on the low end for what most title lenders in Arizona will provide for these kinds of loans that don't use your vehicle's title as collateral. While there could be limits on how much money you can get, one thousand dollars is generally the average amount someone in AZ can get with a registration loan because it represents about half of what an average used vehicle costs.

Regarding minimum and maximum loan amounts, the numbers often come down to how much the vehicle is currently worth on the resale market. Similar to a title loan online, a registration loan will usually net you 30-60 percent of the car's value. Loan amounts will often start at a few hundred dollars and go up to $5,000 for high value cars with low mileage.


What Kind Of APR To Expect With A Registration Loan Near Me

The APR or interest rate for a registration loan will undoubtedly be higher than other loans requiring good to excellent credit. As you likely know, registration loans and car title loans have interest rates that can touch 100%, and these finance rates make it challenging to repay the loan if you're only making the minimum payments. That's why you should apply for registration loans near me only when you have limited options and have already been denied lower interest loans. Try to pay off your loan as quickly as you can and work to make extra payments upfront to alleviate some of the high interest charges.


A Highway Title Loans customer signing off on a registration loan.


How Do Online Registration Loans Differ From Car Title Loans?

The most apparent difference between these two loan offers is that registration loans don't require the vehicle's title to be handed over. Instead, you only need to hand over the registration info for a loan in Arizona. Another vital distinction between registration loans and online car title loans is that these loans have no credit checks required, and you may get a bit less cash than what you would see with a typical online title loan. This makes them perfect for people with bad credit or none!

Another difference is that registration loans don't always require the same type of vehicle inspection that we typically see with car title loans. As most online title loans are underwritten for higher amounts, the lender will do more work to ensure the validity of their loan. They will sometimes ask for a detailed vehicle inspection and additional documents. Compare that to an auto registration loan with a lower loan amount, and you'll see why some finance companies in AZ will not always ask for an in person vehicle inspection.

One of the most important differences between these types of loans is that a registration loan is far less risky for the borrower than a typical car title loan. Since you're only using the vehicle's registration document as collateral, there's no risk of a lender repossessing the vehicle if you fall behind on the payments. If you default on a registration loan, you won't be able to register your vehicle, but that's far less of an issue than having the car repossessed and sold at auction because you missed a few payments!


More About Auto Registration Loans Near Me In Arizona

Are you ready to learn more about getting back on track financially with a secured loan? At Highway Title Loans, we work with consumers throughout Arizona who are considering using their vehicle pink slip as collateral for a registration loan. Any borrower with their paperwork and vehicle information can get started on an online application for a title loan from our website.

Contact us at 877-433-5454 to learn more about our online lending offers. We also offer options for people interested in secured lending, such as a title pawn online and title loan refinances. Highway Title Loans is the best source for affordable car registration loans near me!


Highway Title Loans - City Connection Service Locations:

Are you looking for more cash from a title loan lender near you?  We've recently added new financing options for people throughout the country. Your application will be processed online, and we'll connect you with a local title loan company in your neighborhood. All you have to do is take a few minutes for a vehicle inspection and then sign the lending documents with a local lender.