Does Arizona Offer Title Loans?

If you need emergency cash and have a vehicle with a title in your name, you have a great shot at getting a title loan to tide you over until things calm down. After all, you may not be able to get a bank loan, and a payday loan may not yield the amount you need. Not every state offers such title loans, though. As a resident of the Grand Canyon state, you may be wondering, does Arizona offer title loans? In fact, it does. But each state’s laws are different, so check out how AZ handles these loans.

What is a Title Loan

This is a kind of secured loan where borrowers can use their automobile title as collateral. Borrowers must permit the lender to put a lien on their vehicle title and temporarily give the lender the hard copy, in exchange for the loan. The lien is removed when the loan is paid. If the borrower doesn’t make the payments, the lender may repossess the automobile to sell it to cover the debt.

Title Loans in Arizona

State and federal laws regulate the vehicle title loan industry. Such loans are indeed obtainable in Arizona, where they’re popular, and where the Department of Financial Institutions is the state agency that licenses them. State statutes refer to title loan lenders as secondary motor finance companies.

Consumer Protections

Arizona protects borrowers by restricting the amount of interest an auto title loan company can charge on such a loan. For loans of $500 or less, the monthly finance rate may not exceed 17 percent. For loans between $500 and $2,500, the rate can’t surpass 15 percent. Further, for loans between $2,500 and $5,000, the monthly finance rate is capped at 13 percent. For any vehicle loan over $5,000, the rate can’t go beyond 10 percent.

Arizona Vehicle Loan Contracts

Every vehicle title loan contract in the state must include the borrower’s name and a vehicle description, along with the make and model. For an Arizona title loan, the agreement must also include your monthly or annual financing rate.

By law, it’s your right to ask for, and receive, a written statement that goes over the due dates and required payment amounts. It is also your right to get written receipts for cash payments. Make sure to hang onto these in case of some rare discrepancy.

Car Title Loan Default

If for whatever reason you can no longer make your payments, or you pay the wrong amount, you’ll be in default of your loan. Under law, the lender has the right to seize the vehicle. However, you may be able to extend the loan with the creditor.

Note that “default” can also mean that you didn’t maintain vehicle insurance, or you breached some other requirement as outlined in the agreement you signed. So, you must be certain to go over the contract thoroughly to ensure that you understand all the requirements. Although the lending and payment process is pretty cut and dried, do ask questions if you need to.


If the lender does need to repossess your vehicle, they’ll first need a court order. You don’t have to surrender your vehicle if such an order isn’t produced.

If repossession occurs, the auto loan company may sell your vehicle and use the funds to cover the balance plus any expenses the lender occurred during the repossession and sale. You may be given the opportunity to repurchase the vehicle. 

So, yes, Arizona offers title loans that you can take advantage of to get out of a jam. Getting one is easy-peasy since no credit checks are involved, and if you can show you can repay your loan, you should be all set. Plus, throughout, you can continue to drive your car. We suggest you go through LoanMart for your title loan servicing needs