Auto Refinance in Tennessee (August 2025)

Reduce Your Monthly Payments with Tennessee Auto Refinancing

Paying high amounts on your car loan every month can stress your finances. If you're stuck in a bad loan, it's better to refinance and take out a new loan with lower payments!

By refinancing your car with Way.com, you could:

• Get reduced Annual Percentage Rate (APRs)
• Save money by lowering your monthly car loan payments
• Take a vacation/deferral from your payment schedule
• Extend or shorten your loan term
• Buyout your car lease
• Add a co-signer or co-borrower to your new loan
• Get tailored loans with bi-weekly payments and hardship plans

Auto Refinance in Tennessee - Start Saving Money Today

Financing a car in Tennessee is never easy - especially if you've signed on for a high APR loan. Various factors might have led you to settle for high monthly payments - but that doesn't mean you need to continue with it!

• Tennessee auto refinancing lets you get out of the bad loan easily by replacing it with a new, better loan.
• The new lender pays the old lender the remaining loan balance, leaving you free to pay reduced monthly payments on the new loan.
• Besides a lower APR and lower monthly payments,Tennessee auto refinancing gives you the benefit of choice. Instead of picking the first offer you get, choose between multiple lenders, compare their rates, and settle for one which suits you the best.

Why Should You Refinance Your Tennessee Auto Loan?

When buying a car in Tennessee, there are just too many things to consider - finances, documentation, post-purchase costs, and whatnot. In the midst of all this, you may sign up for an auto interest rate that seems fair at first - but not after a few payments.

If your credit score and financial position have improved since then, you can refinance your Tennessee auto loan and get the following benefits:

• Get lower APRs: A better credit score can reduce your APR by at least 1-2%, which can save you thousands in the long run.
• Reduce your monthly payment: Need to cut corners and save money every month? Refinancing can reduce your auto loan payments to manageable levels.
• Add or remove a co-borrower/co-signer: You can get better APRs by having someone co-sign or co-borrow an auto loan.
• Get cash-out refinancing: Need fast cash for an emergency? Borrow an amount equal to the equity you own in the car through cash-out refinancing.
• Include more benefits in your loan: Get add-ons like Guaranteed Asset Protection, Vehicle Service Contract, and other benefits you missed in the original loan.
• Buy out your lease at the end of the term.

How Much Can You Save Through Auto Refinance in Tennessee?

On average, borrowers who refinanced their car loans have been able to reduce their Tennessee refinance rates by at least 1-2% and save up to $1850 every year. If you have excellent credit, you can slash your rates by even 3-4%!

When Should You Refinance Your Tennessee Auto Loan?

While you can technically refinance your Tennessee auto loan any time after taking it, it's best to wait until you fulfil certain conditions. If not, you could end up with several failed attempts to refinance - or even a worse loan than your current one!

Before researching Tennessee refinance rates, ask yourself these questions:

• Have at least 60-90 days passed since you signed your current loan?
• Has your credit score increased at least a few points above what it was at the time you took your existing loan?
• Do you want to reduce your monthly payments and save money on your auto loan?
• Do you want to get rid of certain terms/clauses in the auto loan?
• Do you want to add/remove a co-signer or co-borrower to your loan?

If you meet at least a few of these criteria, you can start the refinance process.

What Documents Do You Need to Refinance Your Auto Loan?

Rather than applying for auto refinancing in Tennessee and then haphazardly scrambling to get your loan details, keep the following details and official loan documents ready:

Personal Financial Information

• Driver's License
• Credit score: Aim for a higher score than what you had earlier. A score above 740 will get you the best rates
• Social Security Number Proof of Income: Lenders usually accept pay stubs, bank statements, or tax returns as income proof.
• Proof of Residence: Lenders will accept mortgage statements, auto insurance policies, utility bills, or property tax bills.

Current Loan Information

• 14-day payoff amount: You can obtain this information by calling your lender and asking for the remaining loan balance, including the next 14 days' principal and interest.
• Car Loan-to-value ratio: Refinancing will not work if you are 'underwater' on your car loan (i.e., owe more than the car is worth).
• Loan term remaining: It doesn't make sense to refinance if you are nearing the payoff due date.
• Prepayment penalty: Some lenders will penalize you up to 2% of the loan balance if you close early. Make sure that your existing loan provider does not have such conditions.

Vehicle Information

• Make and Model
• Year (Age)
• Title
• Vehicle Identification Number (VIN)
• Proof of Car Insurance

Auto Refinance in Tennessee: Eligibility Requirements

Your car will likely be eligible for auto refinance in Tennessee if it meets these criteria:

• The car is less than 10 years old (varies depending on the lender)
• The car has a mileage of less than 150,000 (varies depending on the lender)
• You have a verifiable income source
• You have a valid driving license
• You have a valid registration
• You have full coverage insurance
• You have a consistent payment history on your current loan

Average Auto Refinance Rates in Tennessee

*The above rates are averages: individual rates may vary based on credit scores, risk profile, payment history, loan balance, and more. Borrowers with excellent credit may get even lower rates than shown.

How to Refinance Your Tennessee Auto Loan with Way.com

Step 1:Estimate your savings with an auto refinance calculator

Before refinancing, it's best to calculate how much you can save. You can do it quickly using an online auto refinance calculator. If your new estimated payment is lower than your current one - go ahead and refinance!

Step 2: Get pre-qualified rates in minutes

An added advantage is that you don't have to go through a hard credit pull at the start! In just a few minutes, you can see which offers you pre-qualify for before deciding on the deal of your choice.

Step 3: Choose an offer and start saving

Once you decide on an offer, there will be a hard credit inquiry that will temporarily affect your credit score. If everything checks out, you'll be offered a finalized loan. All you need to do is submit the required documents, and we'll take care of everything else!

And don't worry about the fall in your credit score - with the refinanced loan, you can easily build it back in a matter of months!

How to Refinance Without Hurting Your Credit

While it is not possible to refinance without at least a slight dip in your credit score, you can reduce the magnitude of the dip in the following ways:

• Try rate shopping within a certain window. For example, FICO considers all hard credit inquiries done within 30-45 days as one single inquiry.
• Pre-qualify for offers using a soft credit pull and shortlist a few before deciding.
• Check your credit score regularly and build it before refinancing. Make good use of the one free annual report provided by credit bureaus.
• A score above 740 will get you preferential rates.

Why our Tennessee Auto Loan Refinance Program is Great For You

At Way.com, we understand that rising vehicle costs across states are making life hard for car owners. Every dollar saved is important in the long run - and that's where we can help.

Way.com is simplifying car ownership across the country -starting with car payments! With our auto super app, you can easily:

• Find and connect to the best refinance lenders
• Compare the best offers and choose the best
• Refinance lease buyouts
• Include additional benefits like insurance, extended warranty, etc
• Refinance even with bad credit

... and much more!

What is Way.com?

Way.com is the country's leading car services marketplace and auto super app, making car ownership affordable to millions of Americans. You can save more than $1500/year through our auto services like:

• Auto insurance and refinance
• Airport parking and city parking
• Car wash services
• Roadside assistance and Cashback on gas

Way.com has a 4.5 rating on Trustpilot, with more than 3 million satisfied customers. The Way app also has a 4.7 rating on Google Play and 4.9 on the iOS app store.