Tenn. Code Ann. § 47-14-120: Time-price differential

(a) The charging of a time-price differential shall not be deemed to bring a transaction within any regulation of interest, loans or loan charges, commitment fees, or brokerage commissions, regardless of whether the seller disposes of the contract containing the time-price differential pursuant to a prearranged agreement, on a recourse or nonrecourse basis, or otherwise.

(b) It shall be permitted to include in a motor vehicle retail installment contract containing the time price differential any amounts actually paid, or to be paid, by a seller pursuant to an agreement with a buyer to discharge a security interest, lien or lease interest on property traded in by a buyer. It shall also be permitted for any lessor of a motor vehicle to include in a lease the outstanding balance of a prior loan or lease of a motor vehicle used as a trade-in, as well as other items that are capitalized or amortized during the lease term without any regulation of interest, loans or loan charges, commitment fees or brokerage commissions, regardless of whether the lessor disposes of the lease containing the payoff balance pursuant to a prearranged agreement, on a recourse basis, or otherwise.