Here at Tennessee Auto Finance, we get our clients approved for financing with no fees, no headaches, and no obligations. We have a vast network of lenders and dealers in our Memphis network, many of whom are standing by, ready to get you behind the wheel of a new vehicle. Submit your application, and the dealers and lenders in our network compete to fund your loan. The advantages are significant:
- Same day approval for many applicants
- 100% financing on approved credit
- New and used vehicles available
Credit Tiers and Financing
There are several credit tiers in the auto finance industry. These are not uniform across the industry – various finance companies have their own classifications and nomenclature. Many individual lenders, like banks or finance companies, only cater to consumers in certain tiers. We, on the other hand, serve a broad clientele of varying credit histories. This gives you the best chance of getting approved, because we’re sure to have dealers in our network who can work with your credit.
FICO Scores of 620 or Lower
Below-average credit is rarely an issue. A large number of larger lenders and dealers now have whole departments devoted to “special finance.” People call these, in Memphis, bad credit dealerships, and we have a wide range of them in our network. Here is what you need to know as far as these financing arrangements:
- Rates of 8-21% APR are common for used vehicles, while 6-17% is common for new ones.
- You may be required to offer a down payment of at least $500.
- You shouldn’t spend more than 10% of your monthly income on your car payment.
It is true that paying off a car as agreed can boost your credit, though this is a gradual process rather than an overnight uptick. The companies we do work do submit payment information to the credit agencies. This is imperative when you need to re-establish your credit. It’s simple. Go here to submit your application online.
Zero Down Auto Loans in Memphis?
Good credit? If so, you might not have to offer up a down payment. Of course, it’s somewhat more difficult for people with below-average credit. That’s because lending to consumers with bad credit is a much riskier process, and a down payment helps to ensure that some percentage of the vehicle’s value is not in jeopardy. What’s promising is, as the economy improves, more lenders and dealers will be offering car loans with no money down.
Apply online, and enter a zero in the down payment field. We’ll connect you with a lender willing to fund your loan, no down payment required.
In-House Financing Car Lots in Memphis
In house financing is otherwise known as:
- We Finance
- Rent to Own
- We Tote The Note
- Your Job is Your Credit
- Buy Here Pay Here (BHPH)
These dealers approve people for financing on the lot, rather than working with banks or finance companies. Payments are made to the dealer directly, and the cars and trucks for sale are normally $10,000 or less. Generally, it’s recommended that you avoid such dealers if you can. Their predatory sales tactics are nothing short of infamous, and they are not regulated in the same way that normal lenders are. They often overcharge for the vehicles they sell, and although they will finance just about anyone, they rarely report payments to the credit bureaus, meaning their customers have no ability to boost their credit.
Credit and Income: Memphis
With a multitude of railways intersecting in the city, and the barge traffic from the mighty Mississippi, the city has long been a center of commerce. Memphis has a thriving economy, serving as headquarters to such companies as FedEx and International Paper.
Of course, dealers and lenders are worried about much more than just your credit rating. Creditors consider such things as:
- Debt to Income Ratio
- Payment History
Listed below are some average statistics for residents of Memphis.
- Average Income: $21,022 Per Year
- Average Car Payment: $193 (11% of Income)
- Recommended Car Payment: $140 to $175 (8%-10% of Income)
Next we have a breakdown of Memphis’s population by credit rating. These are just estimations, but they should give you an idea of where you stand in relation to other consumers in Memphis.
|FICO Score||% of Population||Residents|
Your credit rating will largely determine your APR, but provided that you have the income, we can typically find a lender for you, even when you have subprime credit.