Registration Loans

What are Registration Loans?

Even if you don’t own your car outright, you can still apply for a loan using its registration. Upon paying any state/local taxes and fees, you can register your vehicle in your name and receive the registration document.

Keep in mind that titles and registrations are different. Registrations must be updated continuously, but titles only change when the car owner changes or repays the loan.

With registration loans, you can borrow money from lenders and upon approval, continue driving your car while you repay the loan according to the lending agreement. The amount you can borrow will depend on your income and the most recent value of your vehicle.

Difference between a Car Title Loan and Registration Loan

Although they may look similar, these loans have specific features that differentiate them.

Car title loans are for car owners

One must exclusively own a vehicle and have paid off all remaining installments to get a car title loan. If you don’t own a car or still owe money, this option isn’t available for you.

Car title loans allow for the withdrawal of larger amounts

You can borrow more through a car title loans than a vehicle registration loan. A car title loan usually provides 25% to 50 %of your car’s current value.

Registration loans carry higher interest rates

Using your registration rather than your car as collateral entails serious risk for the lender. With this risk comes higher interest rates, usually costing hundreds or even thousands extra in interest.

How Can I Find Registration Loans Near Me?

WeLoans can find registration loan providers willing to lend you the amount you need. You must have your registration with you at the time of application, so ensuring state registration should be your top priority. To register, you must have:

A title in your name

The vehicle must be titled in your name.

Passed the emission/smog test and safety inspection

The vehicle must pass the registration authority’s emissions, safety, and smog tests.

Possess an authentic and valid car insurance

You must insure your vehicle with a third-party insurance company before registration.

Keep in mind that registration loan funding is only available in the U.S. state of Arizona.

Advantages & Disadvantages of Registration Loans

As mentioned, registration loans differ from car title loans. Both offer benefits, but one may be a better option for your specific needs.

Advantages of registration loans

You needn't own a car

A registration loan only requires you to possess the vehicle’s authentic registration and have it in hand.

No repossession risks

The lender cannot repo your car if you default on a registration loan for some unfortunate reason.

Disadvantages of registration loans

Higher interest rates

Since you’re not providing your car as collateral for the loan, the interest rates will generally be higher. You’ll pay hundreds extra to pay off the loan.

Lower lending amounts

The borrowing limit on registration loans is generally lower than that for title loans when you don’t use your car as collateral.

Default risks

The lender cannot repossess your car if you default, but it may send your account to collection or sue you for the remaining balance.

How Much Does a Registration Loan Cost?

You can borrow from $400 to $5,000 through a registration loan. The amount varies depending on your income, the current value of the vehicle, and your individual requirements.

The cost will depend on the amount you borrow and the loan term (i.e., the duration of the repayment period). You can use a title loan calculator to estimate your registration loan’s cost.

Arizona state statutes cap the monthly interest rates for registration loans:

• For loans more than $500, the rate is 15% (180% APR)

• For loans up to $500, the rate is 17% (205% APR)