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Tennessee drivers with bad credit often wonder what they’ll do in the event they must purchase a new vehicle. With bad credit, it’s not easy to secure a car loan. It’s also not impossible, which is the good news. Drivers are able to secure loans easily when they know where to look. If you reside in Tennessee and suffer with bad credit, you’re hope is not lost. You do have an option or two available to you, and you can find a loan for a vehicle even when your credit score seems to speak to the opposite. If you have a bad credit score, get to know it. Pull all your credit reports, which is something you should be doing every few months regardless. Check for mistakes, and rectify them with a dispute if they’re present. Getting these off your credit report helps your score go up quickly, which might move you from bad to good credit.

If you have a bad credit score that hovers near fair or good, you have a better chance of securing a loan for a new vehicle. If you’re on the low end of bad in terms of your credit, don’t fret. The first thing to do is seek dealerships in your Tennessee town that offer financing to those with bad credit. Many dealers work with lenders that offer high-interest financing to those with bad credit, but you’ll want to check first. Don’t fill out a dealer application until you know for certain this dealer handles bad credit financing. A hard inquiry on your report can lower your score a few more points, which can make it even more difficult to secure financing.

Find your own financing. Many Tennessee credit unions and banks offer bad credit financing to their long-standing customers. These companies tend to look at your credit history, job history, and income more favorably than your actual credit score. If you have a bad score, it could be because you lost your job four or five years ago and struggled for a year, which dropped your score significantly. If your income, lack of debt, and your payments are favorable for at least six months or longer, you might secure financing through one of these lenders.

Your other option is to make a large down payment. Lenders are more likely to work with you if you make a large down payment than they are if you don’t make one, and many lenders might require you put something down regardless. This is to protect their investment in your loan, and to ensure they get a little something back from you if you default on the loan and your vehicle is repossessed. You do have options, and understanding the laws and the way lenders and dealerships work in Tennessee is going to make this much easier on you as a whole.

Tennessee Dealers and Salespeople Licenses and Requirements

The state laws require all people who sell cars or own businesses selling cars in Tennessee must be licensed. This requires taking special classes, learning to sell cars, how to work with lenders, and how to treat customers. These laws also require all dealers work ethically, and that they have a certified mechanic inspect all new and used cars that come on to the lot. There are laws regarding the type of vehicles sold on specific lots. They must not be lemons, they must now be damaged too badly, and they must all come with a free car history. If you ask for it, a dealer is required to provide you with a free history of the vehicle and its ownership. This should list all scheduled maintenance, all the works that’s ever been done on the car, and all the information you need to keep buyers aware of what they’re putting their money into when they purchase a new car.

Driving In Tennessee

Many people have questions about driving in Tennessee. If you drive in one of the five biggest cities, you’ll probably pay more in insurance, gas, and taxes. These cities include Nashville, Memphis, Knoxville, Chattanooga, and Clarksville. Living closer to major highways and downtown areas where crime is higher does increase the cost of insurance for vehicles. This is due to the greater probability a driver is going to be involved in an accident or theft. Depending on the type of vehicle you drive and what’s most popular in terms of car thefts at the time, you could also pay more.

If you live in one of the larger cities, you’ll spend more time in traffic. This means you’ll spend more in gas. However, if you live outside the city and commute, you might pay just as much in gas driving longer distances. If you live in the mountainous areas of Tennessee, you might find driving is a bit treacherous on small, windy roads. This is especially true at night when the roads are dark or in the rain when they’re wet. Driving in the low-lying areas of the state is a bit safer with wider roads and bigger shoulders.

All Tennessee drivers are held to the same standard as anywhere else in the country, which is a standard of good driving. Road signs are to be followed as the law, and all drivers are required to forgo drinking and driving and pay attention to the road no matter what else is going on.

Tennessee drivers with bad credit often question their ability to get a license and drive, but it’s not nearly as difficult as many assume. There are laws associated with lenders and dealerships that might make it more difficult for you to secure financings for a new car when your credit score is low, but it’s not impossible. If you can save for a big down payment, pay off a little debt to raise your score, or find a credit union or dealer willing to work with you, there is nothing stopping you from driving the car of your dreams.