Auto Loans in Franklin (TN)

If you live in the Nashville suburb of Franklin, TN, and you need to finance a car, we can help. We’ve been in the auto finance business since 2009, developing a deep network of dealers and lenders in Franklin and Williamson County, many of whom can approve you for financing – online! Just submit your application, and we’ll start working to get you approved from a car loan in Franklin that suits your needs. In minutes, you could be discussing the details of your contract with a finance specialist from a dealer or lender local to the area and scheduling an appointment to select your vehicle. We make the process nearly effortless, and it takes just five minutes to apply.

Auto Finance Rates in Franklin, TN

FranklinInterest rates:  they are the single most important part of the financing equation for you, the consumer. Why? Because they determine how much your vehicle will end up costing you by the time it’s paid off. Your lender will set your interest rate based on a complex matrix of different factors, but the most influential one is your credit score. As you know, the better your credit, the lower your rate of your interest. Generally, those people with top-tier credit can expect rates of 0-4% APR. People with fair credit can expect 5-9% APR, and those with subprime or “bad” credit 10% APR or higher. Keep in mind that used car loans come with higher rates, but this is counterbalanced by the fact that used vehicles have more gradual rates of depreciation.

Credit Problems?

Do you have a FICO score of 620 or less? That’s OK. Bad credit isn’t usually the end of the road, as it sometimes is if you were trying to buy a home, for instance. Subprime auto lending has been gaining ground since 2008, when auto lenders largely curbed their lending to subprime borrowers. These days, we can help you get a bad credit car loan in Franklin, as long as you have sufficient income ($18,000 per year) and no open bankruptcies or recent auto repossessions, voluntary or otherwise. A down payment may be required by your lender, but there is no minimum FICO score for applying, and we can help consumers in all of the lower credit tiers.

Credit Tier FICO Range
3/C 581-659
4/D 520-580
5/F 250-519

You’ll typically have your application placed with a company that will submit information to the credit agencies. This is great when you need to re-establish your credit, as the credit reporting agencies count on lenders and creditors to report such payments to them – payments that largely serve as the foundation of your FICO score. Apply Online!

Down Payment: Do I Need One?

As we stated above, down payments are sometimes required by lenders. They reduce the risk for the lender, because at least a percentage of the asset has already been paid off, which is important if the lender ever has to repossess the vehicle. That said, providing a down payment affords you, the consumer, significant benefits as well:

  • Shortens loan, meaning less is paid in interest.
  • Decreases monthly installment.
  • Decreases negative equity.

Still, you don’t need a down payment to submit an application. Apply online, and indicate zero down payment in the appropriate section. We will connect you with a lender willing to finance your purchase, no down payment necessary.

Franklin Buy Here Pay Here Financing

There are many car lots who now advertise “No Credit Checks” in an effort to attract credit-challenged consumers. This sort of financing is otherwise known as:

  • Your Job is Your Credit
  • Tote The Note
  • Rent to Own
  • We Finance

Shoppers who have been unable to get approved for financing because of seriously bad credit often end up at these types of dealerships. The bad news is, they have a number of disadvantages:

  • Inflated rates of interest
  • Big down payments
  • Strict repossession guidelines
  • Installation of kill-switches and GPS recovery units

All in all, chances are you’ll be much happier working with a traditional dealer that arranges auto loans for people with bad credit. Of course, that’s what we’ll help line up for you when you apply through us.

Credit and Income: Franklin

Truth be told, there’s more to the approval process than just your FICO score. Loan companies consider such things as:

  • Debt to Income Ratio
  • Job Stability
  • History of Payments

Below are some average statistics for Franklin residents.

  • Pre-Tax Income: $3,543 Monthly
  • Average Car Payment: $390 (11% of Income)
  • Ideal Car Payment: $283 to $354 (8%-10% of Income)

Below-average credit. It’s fairly common in Franklin and across the state of Tennessee. The chart below depicts the estimated number of Franklin residents at each credit tier.

FICO Score % of Population Residents
300-499 2% 1,387
500-549 5% 3,467
550-599 8% 5,548
600-649 12% 8,322
650-699 15% 10,402
700-749 18% 12,482
750-799 27% 18,724
800-850 13% 9,015

Ready to get started? Click here to submit your application.