Registration loans, also known as title loans, are an option for Arizona residents who need money quickly due to some sort of emergency. Unlike title loans, you do not have to own the vehicle free and clear to qualify for a registration loan. However, the vehicle must be registered in your name. But how much can you get for a registration loan? You might think it is based on the value of the vehicle, as is the case with title loans, but it isn’t.
The amount you can get for a registration loan is based on your income and employment status, not the value of the car. The amount varies but is typically between $200-$4,000.
The requirements for a registration loan are as follows:
- You must have current vehicle registration and driver’s license in the state in which you live.
- You must be leasing or buying the vehicle in your own name.
- You’ll need the make, model, mileage, year, etc. during the application process.
- You’ll need to make sure you keep up the payments on the vehicle while your registration loan is out.
The Downsides of Registration Loans
There are two major downsides of registration loans. The first is that the amount you can borrow is typically lower than you could borrow with a title loan. The reason for this is because you are not using the car as collateral when you take out a registration loan.
The second downside is that the interest rate on a registration loan is usually much higher than the interest rate on a title loan. This, again, is because there is no collateral on a registration loan. The risk is higher for the lender, so the interest rate is higher as well.
When Is a Registration Loan the Right Choice?
A registration loan is a good choice for someone who can’t take out a title loan. Title loans require a clear title, and many people have a lien from a financing company on their title. Registration loans allow consumers to take out a loan even though they don’t have a clear title.
If you need a registration loan, visit one of Tio Rico’s five locations throughout southern Arizona. Tio Rico is the leading lender for registration loans in Arizona.