Need to finance a car in TN with bad credit? Then buy here pay here financing may be your best option. Most old-school car lenders like banks and credit unions rarely approve financing for people with problems such as:
- Car Loans after Bankruptcy
- Car Loans after Repossession
- Car Loans after Foreclosure
- Car Loans with Poor Credit
- Car Loans without Credit
- Car Loans without Cosigner
In just 3 minutes, we can help you get approved for financing from one of the many buy here pay here car lots in our Tennessee dealer network. When you submit your application, our online service will go to work matching you to the best Tennessee buy here pay here car lot given your individual credit profile, income, down payment, and vehicular needs. With your credit already approved for financing, you can step onto the car lot with added confidence and negotiating leverage. It puts the fun back in car shopping, enabling you to focus on the car you want, not the financing you need approved.
Buy Here Pay Here Buying Tips
Most buy here pay here car sales are for used cars — best choice if you’ve had credit problems. New cars lose up to 1/4 of their value as soon as they leave the showroom floor. That’s because car buyers pay retail, but as soon as the car is sold, dealers will only pay wholesale to get it back. That means a steep drop in value.
A vehicle for which you agreed to pay $20,000 over a 60-month period may be worth only $15,000 before the first month is up. The result is what’s known as an “upside down car loan,” and nobody who’s been caught underneath one is likely to recommend it, especially if you ever want or need to sell the vehicle before it’s fully paid off. After all, you’ll have to come up with the extra cash to pay off the loan — often several thousand dollars. A preowned vehicle, on the other hand, has already undergone this initial drop in value, so you’re less likely to fall victim to the burden of negative equity.
How Much to Spend
Most financial experts recommend dedicating 1/5 of your monthly budget to transportation costs. Monthly car payment is not the only factor. Fuel, car insurance , maintenance, tag and title fees, as well as other expenses such as public transportation or secondary vehicles all factor into this equation. So if you take home $3500 per month, that’s $700 to spend.
Credit Score and Interest Rates
You should always check your credit report before agreeing to your auto financing package.
That’s because your auto finance rate is based largely on your credit score. If you don’t know your score, you could overpay for your new vehicle.
Moreover, credit report inaccuracies are all too common; after all, creditors report borrower behavior to credit bureaus, and mistakes do happen. You should ensure that your report doesn’t have issueslike false bankruptcies, foreclosures, repossessions, and/or similar credit problems that could deflate your score and inflate your financing rates to astronomical proportions.
To check your credit score, we recommend a trusted source such as CreditReport.com.