State rules
Arizona auto loan rules
Arizona has 91 Census places covered on AutoLoanable, with a combined estimated population of 5,955,436. Vehicle financing in Arizona is governed by state law — the interest-rate caps, title-lending rules, sales-finance licensing and the regulator that oversees them. The sourced figures below apply to every car loan made to a borrower in the state.
The lowest rates are only available to the most qualified applicants.
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Key rules for car buyers in Arizona
| Rule | Detail | Source |
|---|---|---|
| Maximum legal interest rate (usury cap) | 10% per year default; any rate may be agreed in writing (other than medical debt) Source says: "interest shall be at the rate of ten percent a year, unless a different rate is contracted for in writing". |
Arizona State Legislature — A.R.S. § 44-1201 as of 2026-09-17 |
| Vehicle title loan status | Title loans are made as 'secondary motor vehicle finance transactions' by licensed sales finance companies; maximum monthly finance rates are 17% (up to $500), 15% ($500-$2,500), 13% ($2,500-$5,000) and 10% (over $5,000). Source says: "A retail installment contract that is a secondary motor vehicle finance transaction is subject to the following maximum finance rates ... Five hundred dollars or less, a monthly finance rate of seventeen per cent." License category: Sales finance company license (A.R.S. § 44-282). |
Arizona State Legislature — A.R.S. § 44-291 as of 2026-09-17 |
| Sales finance / installment lender licensing | Consumer lender license required from the deputy director (A.R.S. Title 6, Chapter 5); at least $25,000 in assets readily available per licensed office; license not transferable Source says: "shall not engage in the business of a consumer lender without first being licensed as a consumer lender". Motor-vehicle retail installment sales are separately governed by the Motor Vehicle Time Sales Disclosure Act (A.R.S. §§ 44-281 to 44-295). |
Arizona State Legislature — A.R.S. § 6-603 as of 2026-09-17 |
| State lending regulator | Arizona Department of Insurance and Financial Institutions (DIFI) Source says: "The Arizona Department of Insurance and Financial Institutions (DIFI)". |
Arizona Department of Insurance and Financial Institutions (DIFI) as of 2026-09-17 |
| Sales tax on vehicle purchases | 5.6% state transaction privilege tax rate on retail sales, including vehicle sales; county and city rates are additional. Source says: the retail classification is taxed at "five percent of the tax base" and "[t]he additional tax rate increment is levied at the rate of six-tenths of one per cent of the tax base" (A.R.S. § 42-5010). |
Arizona State Legislature — A.R.S. § 42-5010 as of 2026-09-17 |
How to use these rules
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Check the ceiling before you compare offers
If a quoted APR looks extreme, compare it against the Arizona cap above — and note that a specific statutory exemption can apply to a particular product.
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Verify the lender is licensed
Use the regulator named in the table to confirm the lender or sales-finance company may legally serve borrowers in the state.
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Know what is secured against your car
A vehicle title loan is secured by the car itself. If the state permits it, understand the repossession terms before you sign anything.
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Budget for tax and fees separately
Sales tax and title fees are financed along with the car, so they raise the amount you borrow — and therefore the interest you pay on them.
Cities in Arizona
We cover 91 Census places in Arizona.