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For anyone looking to buy a new or used vehicle, it’s likely you’ll need an auto loan in order to complete your purchase. Whether your loan gets funded or not depends on a wide range of factors, such as your FICO score, monthly income, where you live, time employed, money down, and debt to income ratio. Instead of driving from company to company, applying for a loan, you can submit one single application through our site. Let a finance expert help you secure financing, answering your questions along the way.

Car Loan Rates in Tennessee

The rates below aren’t anything but estimations to give you a feeling for what rate you can expect given where you live and your FICO score. Actual rates vary.

Credit Rating New Car Used Car
Excellent 3.2% 3.5%
Good 4.4% 4.9%
Average 6.1% 7.4%
Subprime 8.5% 10.0%
Bad 13.3% 16.9%
Very Bad 15.1% 19.2%

Do you know what your FICO score is? You really should. If you don’t know your credit score, you could overpay in interest. Go here to check your score.

Used Car Auto Loans in Tennessee

Car makers are really only interested in selling brand new cars and trucks. Higher interest rates for used vehicles, however, are countered by lower down payments, monthly payments, and premiums. Have a look at the table below, which depicts the costs of auto loans for new versus pre-owned vehicles.

Years Old Price APR Months Payment Interest Total Cost
New $27,000 6.00% 60 $521.99 $4,319 $31,319
1 Year $21,600 7.50% 60 $432.82 $4,369 $25,969
2 Years $18,360 7.50% 60 $367.90 $3,714 $22,074
3 Years $15,606 7.50% 60 $312.71 $3,157 $18,763

Clearly, the car bought new for $27,000 is worth only $15,606 after 36 months of ownership. Let’s consider the common limitations on auto loans for used cars:

  • Car not more than 7-10 years old.
  • Mileage no higher than 100,000.
  • Bought through dealer, not private party.

Poor Credit Auto Loans in Tennessee

Your credit score is crucial when financing a car. Higher FICO ratings often lead to cheaper rates, but it’s considerably more complex than that. A couple of decades ago, you might be rejected at a few banks or dealers before you secured financing. If your credit is pretty bad, you may want to work with a dealer that promotes buy here pay here loans. There’s a price for that lack of credit check: exorbitant rates of interest, loads of terms and conditions, and overpriced vehicles.

It is best to keep clear of these car lots if possible, and apply for an auto loan on the web. The advantages are significant: improved rates, improved service. And, if you make your payments in a timely manner, a better FICO score.

Go here to apply online.

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