AZ HB2396

Amends sections 44-286 and 44-291 of Arizona Revised Statutes to regulate secondary motor vehicle finance transactions by prohibiting transactions on vehicles with existing liens and prohibiting additional security or guaranties as conditions for such transactions.

Establishes a maximum annual finance charge of 36 percent for secondary motor vehicle finance transactions, replacing previous tiered rates based on loan amount.

Voids secondary motor vehicle finance transactions that violate the lien restrictions or exceed permitted finance charges, with violators subject to enforcement and penalties as unlawful practices under state consumer protection law.

Requires sellers to clearly disclose the annual secondary motor vehicle finance rate in contracts and defines "finance charge" to include all interest, ancillary product charges, and incidental credit extension costs.

Makes any secondary motor vehicle finance transaction by an unlicensed lender void, with the lender having no right to collect principal, finance charges, or fees.