An Arizona Auto Title Loan is a short term high interest loans. The title must be free and clear of liens. You must own the vehicle outright in order to get the loan. Your vehicle will act as the collateral in the loan. This is known as a secured loan. A secured loan is where the borrower needs to put up collateral in order to obtain the loan.
The lender will put a lien on the title while the borrower is paying off the loan. This means that the lender will become the legal owner of the vehicle until the borrower pays off the loan. The borrower will no longer be the legal owner of the vehicle. However, the borrower remains the registered owner of the vehicle.
Benefits of Auto title loans in Arizona
The main benefit to a title loan is that the borrower has the privilege of using the vehicle while paying off the loan. The vehicle doesn’t have to be kept in a garage somewhere by the lender. This increases buyer confidence to pay back the loan tenfold. Why, because the buyer will be able to use the vehicle for work or to get to work.
These days many people use their vehicles to earn a living. Many people are doing Uber and Lyft full time and also part time to make money on the side. The benefit to Uber and Lyft is that you decide your own hours. This makes it very flexible to do Uber or Lyft around your job. You could also do your day job during the day and deliver food at night for extra income. Title loans are also known as pink slip loans.
Not only are they doing title loans for cars, trucks, and vans but they are also offering commercial truck title loans, motorcycles, pretty much most types of vehicles. Remember this is a high interest loan. If you can borrow money from a friend or family member instead we suggest you do it. Arizona Title Loan Law
Arizona Auto Title Loan Military Exclusion
As of October 3rd, 2016 –Title Loans are PROHIBITED to active service members, reservists, or any dependents thereof.