How do title loans work in Arizona?


August 17, 2023



min read

Are Title Loans Legal in Arizona?

Yes, vehicle title loans are legal in the state of Arizona. Laws governing these types of loans are codified in the“Arizona Revised Statutes”, Title 44, Chapter 2.1, Article 1 (1).

Understanding Title Loans

Title loans are ways of borrowing money using your vehicle's value as collateral. The lender assesses the value of the car and your ability to repay the loan to determine the amount you can borrow. In contract, Yendo is a vehicle secured credit card that uses the value of your car to help determine your credit limit. Because it is a credit card, you have ongoing access to funds.

Regulatory Guidelines for Title Loans inArizona

Here are some statutory guidelines Arizona follows for vehicle title loans:

Loan Maximum and Minimum: In Arizona, there are not minimums or maximums for title loan amounts. (1)

Interest Rates: Arizona law permits title loan lenders to charge the following monthly interest rate (2):

  • $500 or less – 17 percent
  • More than $500, but not more than $2,500 – 15 percent
  • More than $2,500, but not more than $5,000 – 15 percent
  • More than $5,000 – 10 percent

Loan Term: Arizona does not impose any specific term period for title loans, which consequently allows lenders to determine the loan term (3).

Licensing: All title loan providers inArizona must be licensed under the Department of Financial Institutions (4). 

Repossession Regulations: If a borrower defaults on the loan, Arizona law allows the lender to take possession of the vehicle but it necessitates a 10-day notice to the borrower before repossessing the vehicle (5).

While title loans can assist in tiding over immediate financial crunches, they also carry potential risks including high interest rates and the chance of vehicle repossession. One must fully understand all terms before proceeding.



Disclaimer: Yendo is not a provider of financial advice. The material presented on this page constitutes general consumer information and should not be regarded as legal, financial, or regulatory guidance. While this content may contain references to third-party resources or materials, Yendo does not guarantee the accuracy or endorse these external sources.