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Under Arizona law a security interest in non-inventory collateral for which a certificate of title is issued (like a car) can be perfected only by having the lien stated on the certificate of title. A lien against a motor vehicle is deemed to be perfected on the date the application for title reflecting that lien is endorsed with a stamped date of receipt by the Department of Motor Vehicles. The constructive notice date to creditors of all liens against a vehicle described in a new certificate of title is the time of receipt and filing of the application for title and/or registration by the Department or the registered office. See Arizona Revised Statutes § 28-2133(B). Under A.R.S. § 47-9324(A), a purchase money security in a car takes priority over any conflicting security interest in the same collateral or proceeds so long as the security interest is perfected at the time the Debtor receives possession of the collateral or within 20 days thereafter.
In your loan, if the dealer filed the application for title, then they have perfected the lien on the car. It is unusual that your car note has an increase in the interest rate if the dealer does file the title and obtain a security interest. I’ve only seen an increase in an interest rates for consumers, you, if you default.
Check your loan documents again, and your note, unless that is written into the note, the dealer probably gave you wrong information on the increase in your rate and the loans default to a personal loan rate. The only 90 day period relating to car loans is applicable to bankruptcy law, and the car dealers rights to collect the monies owed if you file bankruptcy, and not the Arizona Revised Statutes provisions on car loans and liens. I hope this answers your question.