Bad Credit/No Credit Used Car Financing For Tennessee Drivers

The process is simple:

• Pick out the vehicle you like
• Answer a few questions
• We will show you exactly what it takes to drive your car home today

You will need to provide proof of income to receive used car financing. Submit one of the following:

• A pay stub showing tax deductions
• Three months of bank statements showing your deposits
• Three months of checks from your employer
• If you are paid in cash only, we will accept a letter from your employer on company letterhead that shows your wages, hours worked each week, and how long you have been with your employer

Insurance is required to finance a vehicle, but we can help you get insurance quotes if necessary. Please include references with a name, address, and phone number for each person.

Your used car financing process will be easier if you can show us your driver license, your most recent checking account statement, and a utility bill to prove your residence, although these are not requirements.

A history of repossessions is not a problem at Right Price Auto - we understand that things happen.

We do not require any money down, but some lenders may base a down payment requirement on a number of factors. We will do our best to work within your budget. Bring what you can afford to put down and we will see what we can do.

How long has an applicant worked at their current job, and how stable is their income? How long have they lived at their residence? How long have they been in the region? These are all factors that exhibit stability and responsibility.

How much income does the applicant have to invest in a monthly payment, vehicle maintenance, and insurance? Payment-to-Income (PTI) and Debt-to-Income (DTI) ratios are important here. A good rule of thumb is that the closer a monthly payment is to 10% PTI, the better - a $3,000 monthly income, for instance, would ideally translate to about a $300 monthly payment. We have some lenders that will go up to 25% PTI, but the more this ratio goes over 15%, the more other factors will need to compensate for it (with a larger down payment or shorter loan period, for example).

When the applicant incurred debts, did they pay them? For a first-time buyer, the answer to that question has yet to be determined. Still, a negative credit history is not a deal-breaker at all - we will just need to mitigate that risk elsewhere in the loan terms.

The length of the loan is determined by the amount being financed, the life expectancy of the vehicle, and the customer and their stability, ability, and intent to pay.

The amount of the loan versus the value of the vehicle (LTV) is determined by the overall risk of the car and the consumer.

Cars or customers that are considered to be higher risks will require a higher down payment. A low-risk customer on a low-risk vehicle can often get a used car with no money down.

The interest rate is a reflection of all the other variables in the overall deal.