Registration Loans: How They Work And Alternatives to Consider

How Do Vehicle Registration Loans Work?

A registration loan is an alternative loan option that is available in the state of Arizona. Registration loans can let you use your vehicle registration as collateral for the loan. Typically, a registration lender will determine your eligibility for an auto registration loan by evaluating your income and ability to repay the loan. In order to obtain approval for a registration loan, you will need to have your car registration on hand.

Registration loans are similar to payday loans. However, both registration loans and payday loans can be expensive ways to borrow and potentially trap borrowers in a cycle of debt. Although car registration loans can help you access quick funding to cover an unexpected expense, they could be expensive in the long run and not worth the risk. 

If you’re looking to borrow with your vehicle, title loans could be an option to consider if you need emergency cash!³ Apply online for a car title loan serviced by LoanMart. Or, just call a title loan agent at 855-422-7412 to get started. If you qualify, you could obtain quick funding in as little as one business day!³

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Why are Registration Loans Only Available in Arizona?

Since you cannot get a payday loan in Arizona, some people think that a registration loan is an alternative option to consider. Loans based on a vehicle registration are available in Arizona for two reasons:

• Section 44 of the Arizona Statutes allows for so-called secondary motor vehicle finance transactions, which means vehicle-secured loans that are not meant to finance the purchase of a new or used automobile
• The Arizona Department of Transportation allows multiple liens to be added to a vehicle title. This gives registration lenders the option to secure the registration loan against the vehicle, even if there is an existing loan outstanding against the car, truck or SUV. Registration lenders may choose to not place a lien if you pay back your loan as agreed, but may do so if you default on the loan.

What Do I Need for a Registration Loan?

You will need the following documents to obtain a registration loan:

• A Valid Driver’s License or Another Government-Issued Photo ID
• Proof of Vehicle Registration in Your Name
• Proof of Income and Residence

Registration loans can be a convenient way to access emergency cash, but the interest rates can be exceptionally high. With a title loan serviced by LoanMart, you can expect competitive interest rates. You can also access up to 50% of the value of your car if you qualify for a title loan!¹ Call a LoanMart title loan agent at 855-422-7412 to learn more about the advantages of car title loans!

How Many Registration Loans Can You Have?

It is possible to have multiple registration loans at the same time. While having that many loans at once can sound like a great idea if you need plenty of emergency cash, it may not be the best decision in the long run. Online registration loans usually come with high interest rates that can make it difficult to repay your loan. 

What is the Most You Can Get for a Registration Loan?

Typically, the amount of money that you can borrow through a registration loan is largely based on the following factors: 

• The Value of Your Vehicle
• Your Income / Your Ability to Pay the Loan

If you want a registration loan, but the amount that you are approved for is not enough, then you can take advantage of other loan options instead! With a title loan serviced by LoanMart, you can access anywhere from 25%-50% of your car’s total value if you qualify! That means you could obtain anywhere from $2,000-$15,000.¹

Is a Title Loan Different Than a Registration Loan?

Registration loans and car title loans are similar, but they are not exactly the same. The biggest similarity is that both can offer applicants with bad credit the chance to access quick funding. Both registration loans and title loans require an applicant to use collateral to secure emergency funding. Additionally, you are able to apply for a title loan or a registration loan even if you are still financing your vehicle. 

But, this is where the differences between the two loan options become apparent. If you are approved for a car title loan and sign the agreement, your car loan will be completely paid off by the lender. If you are approved for a car registration loan while you are still financing your car, you will take on another loan. The registration loan lender is not responsible for paying off your existing auto loan, so you will have two loans to manage instead of one.  

Another key difference between the two loan options is that car registration loans are only available in Arizona. But, you can apply for a title loan in many states throughout the country.

You can conveniently apply for a car title loan serviced by LoanMart online or over the phone at 855-422-7412. It might only take a few minutes to get through the application process, and if you qualify, you can obtain quick funding in as little as 24 hours! So why wait to see if you qualify?^{1 3}