Compare the best auto loan rates and lenders in Tennessee to find the perfect financing for your new or used car.
Get pre-approved for an auto loan before visiting a dealership. Pre-approval gives you negotiating power and protects you from dealer financing markups that can add $1,000–$3,000 to your total cost.
Tennessee, known as the Volunteer State, has a population of 7.1M with a median household income of approximately $57,000. The current unemployment rate stands at 3.1%, which lenders consider when evaluating applications from Tennessee residents.
Major financial hub: Nashville is the primary financial center for Tennessee residents, with access to both national and regional lenders.
Issuer/Lender: Leaders Credit Union
APR Range: As low as 3.49% APR
Key Benefit: Quick online pre-approval and flexible terms up to 96 months.
Issuer/Lender: Ascend Federal Credit Union
APR Range: Competitive rates
Key Benefit: Apply for auto loans directly at participating dealerships.
Issuer/Lender: TVA Community Credit Union
APR Range: New autos from 5.75% APR
Key Benefit: Transparent rates effective daily.
Issuer/Lender: Southeast Financial Credit Union
APR Range: New car loans from 3.50% APR
Key Benefit: Variety of terms available for car and truck loans.
Issuer/Lender: Tennessee Valley Federal Credit Union
APR Range: New cars from 4.39% APR
Key Benefit: Wide range of terms for new and used vehicles.
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| Lender | New Car APR (as low as) | Used Car APR (as low as) | Term (Months) | Credit Score Range | Action |
|---|---|---|---|---|---|
| Leaders Credit Union | 3.49% | 4.99% | Up to 96 | Excellent | Check Rates |
| Ascend Federal Credit Union | 4.25% | 5.75% | Up to 84 | Good | Check Rates |
| TVA Community Credit Union | 5.75% | 6.75% | Up to 72 | Fair | Check Rates |
| Southeast Financial Credit Union | 3.50% | 4.00% | Up to 60 | Excellent | Check Rates |
| TVFCU | 4.39% | 5.89% | Up to 84 | Good | Check Rates |
| Bank of Tennessee | 5.17% | 6.50% | Up to 84 | Good | Check Rates |
| Consumer Credit Union | 5.79% | 8.39% | Up to 84 | Fair | Check Rates |
As of Q3 2025, the average new car loan APR is around 6.37%, and for used cars, it's about 11.26%. These rates can vary based on your credit score and other factors.
Your credit score is a major factor. Borrowers with excellent credit scores (781-850) typically receive the lowest rates, while those with lower scores will face higher interest rates.
Yes, Tennessee has a state sales tax of 7% on vehicle purchases. Additionally, there are registration fees, which include a standard plate fee of $26.50 and potentially a wheel tax depending on your county (e.g., $55 in Nashville).
New car loans generally have lower interest rates than used car loans due to the lower risk associated with newer vehicles. However, used cars are typically less expensive overall. Your choice depends on your budget and financial goals.
Typically, you'll need proof of income (pay stubs, tax returns), identification (driver's license), proof of residency, and information about the vehicle you intend to purchase. Lenders may also request your credit history.