What a title loan costs — before Arizona’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Arizona
- Rate cap
- Tiered monthly finance rates (A.R.S. § 44-291): 17%/mo on ≤$500, 15%/mo on $500.01–$2,500, 13%/mo on $2,500.01–$5,000, 10%/mo above $5,000 (about 204% down to 120% APR).
- Key law
- Arizona secondary motor vehicle finance transactions, A.R.S. Title 44, Chapter 2.1 (rates at A.R.S. § 44-291).
- Enforcement
- Licensed by the Arizona Department of Insurance and Financial Institutions (DIFI). CFA/Center for Economic Integrity reporting documents title lenders filling the gap after Arizona’s payday-loan law expired in 2010.
A.R.S. § 44-291 sets a 17% monthly finance rate on title loans of $500 or less (about 204% APR), the top of Arizona’s tiered schedule.
What it means for a Arizona borrower
Title loans are legal and common in Arizona but expensive, often around 120%–204% APR depending on loan size. A licensed lender can repossess your vehicle if you default. Smaller loans carry the highest rates, so borrow the minimum and read the finance-charge tier that applies.
Before you borrow in Arizona
- Check whether the lender is licensed in Arizona — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Arizona attorney general and the CFPB.
- Ask whether the balance is even collectable under Arizona law before you pay a collector.
Cheaper first — try these before a title loan in Arizona
Title Loans and tribal lenders in Arizona
Many online lenders that market title loans to Arizona residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Arizona residents and how state law applies to them, see the Arizona tribal-lending page.
Tribal loans in Arizona →Frequently asked questions
Are title loans legal in Arizona?
In Arizona, single-payment auto title loans are legal and enforceable, commonly around 300% APR, with the car as collateral. The speed is real; so is the repossession risk. Check the total cost and never pledge the car you rely on to get to work.
What is the maximum title loan rate in Arizona?
Tiered monthly finance rates (A.R.S. § 44-291): 17%/mo on ≤$500, 15%/mo on $500.01–$2,500, 13%/mo on $2,500.01–$5,000, 10%/mo above $5,000 (about 204% down to 120% APR).
What can I do about a title loan I already have in Arizona?
Arizona allows this lending, so the loan is generally enforceable — but you can still revoke ACH authorization in writing, avoid taking a second loan to cover the first, and file a complaint with the Arizona attorney general or the CFPB if the lender breaks the rules.