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Car Loan in Tennessee 2024

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Car Loan in Tennessee 2024

Make auto loan refinancing easy with PriceProtect™
No long forms · No spam · No rush
Jerry, Inc.
To get a car loan in Tennessee, you’ll usually need to have a credit score of 660 or higher. You should additionally aim for a low interest rate on your loan with a loan term that’s no longer than 60 months.
Though getting a car loan may seem difficult, familiarizing yourself with a few basic concepts and strategies can help make the process much more straightforward.
Here to guide you through the steps is car insurance and broker app Jerry. We’ll go through everything you’ll need to know about securing a car loan in Tennessee—from how and where to apply to what sort of impact your credit score may have.

How to get a car loan in Tennessee

In most cases, when you’re purchasing a car, it’s not financially feasible to pay the full price up front. Getting a traditional loan through your bank, credit union, or the dealership itself can help ease the financial burden by spreading the payment out over a number of years instead.
Here’s what you can expect when you take out a loan on a car in Tennessee:
  • The lender will request a down payment—usually this is around 10% of the car’s total value
  • You and the lender will negotiate a loan term (how long you’ll be paying it off)
  • You and the lender will agree on an interest rate (the percentage you will be charged for borrowing their money)
  • The lender will collect monthly payments from you based on the loan principal, or total value, over the course of the agreed-upon term
  • You will pay monthly interest fees according to your annual percentage rate (APR) Factors like the type of car you’re buying, your loan term, and your credit score will influence the details of your loan. Here’s a table to show how your APR and monthly payments might factor into a Tennessee car loan.
Car MakeAverage Annual Interest RateAverage Monthly Payment
ACURA8.46$361
ALFA ROMEO8.53$362
ASTON MARTIN8.53$362
AUDI8.66$363
BENTLEY8.53$362
BMW9.17$367
BUICK8.56$362
CADILLAC8.86$365
CHEVROLET8.56$362
CHRYSLER8.89$365
DODGE8.69$363
FERRARI8.53$362
FIAT8.6$362
FORD8.56$362
GENESIS8.53$362
GMC8.49$362
HONDA8.32$360
HYUNDAI8.56$362
INFINITI8.69$363
JEEP8.32$360
Jaguar8.53$362
KIA8.79$364
LAMBORGHINI8.53$362
LEXUS8.49$362
LINCOLN8.66$363
LOTUS8.53$362
Land Rover8.53$362
MERCEDES-BENZ8.53$362
MINI8.53$362
MITSUBISHI8.69$363
Maserati8.53$362
Mazda8.53$362
NISSAN8.63$363
POLESTAR8.53$362
PORSCHE8.68$363
RAM8.56$362
ROLLS-ROYCE8.53$362
Subaru8.53$362
TESLA9.02$366
TOYOTA8.32$360
VOLKSWAGEN8.56$362
VOLVO8.36$361
When you’re ready to take the next step to get your car loan in Tennessee, proceed as follows.

Check your credit

You’ll want to check your credit score as your first move. In order to secure a loan with a good interest rate, you should have a credit score of 660 or higher. If you are diligent enough to have an above-average credit score (around 700 and higher), you may even be able to get interest rates as low as 3%, possibly even lower. The national average, however, is closer to 5%.
The table below can be used to help predict what your average interest rate and monthly payment might be based on your credit score.
Loan TermsAverage Annual Interest RateAverage Monthly Payment
2411.63$699
368.8$471
488.25$364
608.15$301
728.51$263

Compare lenders

It’s extremely important to research your options rather than jumping on the first offer. Though it may seem convenient to take that first loan the dealership proposes, there’s a chance that the agreement might serve them more than it will serve you.
A safer practice is to compare loan offers from at least three separate lenders before making a decision. Be sure to factor in the following considerations:
  • Interest rates—are they low or high?
  • Approval odds—how likely will you get approved by this lender?
  • Customer service—how approachable and responsive is their communication?

Choose your loan term

One of the major negotiable aspects of your loan is the timeframe in which you will pay off your balance—this is called the loan term. Generally, in Tennessee, an average loan term is between 60 months and 72 months.
Having a longer loan term may save you money in monthly payments. However, it should be noted that you will also pay higher interest rates, which adds up to a more expensive loan in the long term. A good rule of thumb is to try to get the shortest loan term you can financially manage. Ideally, this should be no longer than 60 months.
You can use the table below to get an idea of how your APR and monthly payment can change based on your loan term in Tennessee.
Credit RatingAverage Annual Interest RateAverage Monthly Payment
Fair16.92$415
Good8.42$361
Very Good5.11$341
Excellent3.89$333

Get preapproved

You should always try to get preapproved for a loan when possible. A preapproval will inform you ahead of the purchase how much money you can borrow and what your monthly payments will look like. Having this information puts you at an advantage when negotiating prices at the dealership or during the private transaction.

Can you get a car loan in Tennessee for a used car?

Yes—it is possible to purchase a used car with a car loan in Tennessee. However, there are a few limiting factors you should keep in mind:
  • Interest rates will be higher—usually around 8%
  • Some lenders won’t approve loans for cars that are over a certain age
  • Banks often require a minimum amount for a car loan—if you need a smaller loan to buy a used car, you might want to consider getting a loan from a credit union instead
The following table can show you how the age and make of your vehicle can impact your car loan in Tennessee.
Car YearAverage Annual Interest RateAverage Monthly Payment
20217.73$305
20208.14$309
20198.28$309
20188.11$307
20178.31$309
20168.47$310
20158.67$312
20148.64$380
20138.71$381
20129.7$512
20119.7$512
20109.7$512

Tennessee car loan calculator

Now that you’re familiar with the loan process, how loan terms work, and how the make and age of a vehicle can impact your options, let’s add up an estimate with Jerry’s car loan calculator. You can use this tool to predict how your credit score, loan term, loan amount, and car make will factor into your interest rate and loan payment in Tennessee.
Though these values are just averages, they will help better prepare you to enter negotiations with your lender. Just remember—interest rates and loan terms are negotiable factors, as are any additional fees or penalties your lender might discuss.
Average Annual Interest RateAverage Monthly Payment
8.59$362

How to find affordable car insurance in Tennessee

Taking out a loan to purchase your new or used car is a big first step, but you’ll need to meet Tennessee’s insurance requirements before you can drive off the lot. To eliminate the stress of researching insurance options on your own, download the Jerry app to do the heavy lifting for you.
By cross-analyzing custom quotes from over 50 top insurance companies, Jerry instantly finds the lowest rates for your coverage needs—so you can shop and compare at your leisure. When you decide on a plan you like, the app then handles all the transition paperwork and can even help cancel your old plan for you.
The average Jerry user ends up saving $887 a year on car insurance so it’s definitely worth the free look!
“I just financed a new car and knew my insurance premium was going to rise. Jerry was well worth it to use. They helped me find a lower premium and canceled my old policy instantly when I was ready to switch!” —Meghana D.

FAQs

What credit score is needed to buy a car in Tennessee?

You generally want to have a credit score of at least 660 or higher to qualify for a car loan in Tennessee. It is still possible, however, to find a lender who will approve you for a loan if you have a below-average credit score.

Will a bank give me a loan for a used car?

It depends. Banks allow you to take out a car loan for both new and used cars alike. However, they sometimes set a minimum amount for a car loan. Therefore, if your used car has too low of a purchase price, the bank might not lend you the money—consider applying for a loan with a credit union instead.

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