Tennessee
Compare the best auto loan rates and lenders in Tennessee to find the perfect financing for your new or used car.
Tennessee Auto Loan Snapshot
UpstartAuto Loans in Tennessee: What You Need to Know
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.
7.1M
Population
$57,000
Median Income
3.1%
Unemployment
Major financial hub: Nashville is the primary financial center for Tennessee residents, with access to both national and regional lenders.
- Average New Car APR: 6.37% [1]
- Average Used Car APR: 11.26% [1]
- State Sales Tax: 7% [2]
- Standard Registration Fee: $26.50 [3]
- Nashville Wheel Tax: $55.00 [4]
Top Auto Loan Lenders in Tennessee
Leaders Credit Union
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.
- Competitive rates for new and used vehicles.
- Online pre-approval for convenience.
- Extended loan terms available.
Ascend Federal Credit Union
Issuer/Lender: Ascend Federal Credit Union
APR Range: Competitive rates
Key Benefit: Apply for auto loans directly at participating dealerships.
- Low rates through indirect lending program.
- Convenient application process at dealerships.
- Serves members across Tennessee.
TVA Community Credit Union
Issuer/Lender: TVA Community Credit Union
APR Range: New autos from 5.75% APR
Key Benefit: Transparent rates effective daily.
- Rates for new and used vehicles.
- Specific rates for different model years.
- Dedicated loan officers for assistance.
Southeast Financial Credit Union
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.
- Attractive rates for shorter loan terms.
- Options for both new and used vehicles.
- Member-focused financial services.
TVFCU (Tennessee Valley Federal Credit Union)
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.
- Competitive rates for various loan durations.
- Flexible financing options.
- Community-focused credit union.
Tennessee Auto Loan Rate Comparison
| 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 |
How to Choose the Best Auto Loan in Tennessee
- Understand Your Credit Score: Your credit score significantly impacts the interest rate you'll receive. Check your score before applying and work to improve it if necessary to secure better terms.
- Compare Offers from Multiple Lenders: Don't settle for the first offer you receive. Shop around and get quotes from banks, credit unions, and online lenders to find the most competitive rates and terms.
- Consider Loan Terms Carefully: While longer loan terms can mean lower monthly payments, they often result in paying more interest over the life of the loan. Balance monthly affordability with the total cost of the loan.
- Factor in Additional Costs: Remember to account for Tennessee's sales tax (7%) and registration fees when budgeting for your car purchase, as these can add significantly to the overall cost.
Frequently Asked Questions About Tennessee Auto Loans
What is the average auto loan interest rate in Tennessee?
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.
How does my credit score affect my auto loan rate?
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.
Are there any state-specific taxes or fees on auto loans in Tennessee?
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).
Should I get a new or used car loan?
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.
What documents do I need to apply for an auto loan in Tennessee?
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.