TD Bank Auto Loan Review
TD Bank auto loans at a glance
TD Auto Finance is an indirect auto finance company. Unlike other auto loans where you can apply online or at a bank, you can only get a TD Bank auto loan through a dealer.
TD Auto Finance doesn’t publicly disclose APRs and terms (a common practice for indirect finance companies). That said, here are some things to know about TD Bank auto loans.
- Dealer application: TD Auto Finance offers loans through dealers, making it convenient to buy a car and obtain financing at the same time.
- Dealer locator: Use TD’s convenient dealer locator website to find a participating dealer near you.
- Flexible payment options: TD Auto Finance customers have a variety of ways to submit their monthly auto loan payment, including online, by mail, by phone, in person or by signing up for autopay.
- Best for savvy shoppers: A TD Bank car loan could be right for you if you are buying at a partner dealership and you know what rates you qualify for with other lenders. A TD Auto Finance loan may also make sense if you already have a relationship with TD Bank and want to keep your accounts under one roof.
TD Bank pros and cons
As with any auto loan, TD Bank car loans come with benefits and drawbacks.
| Pros | Cons |
|---|---|
Flexible payment options Easy dealer application Both auto loans and unsecured personal loans are available | Must apply with a dealer to see rates and loan terms Does not disclose eligibility requirements Dealer may inflate your interest rate |
With a TD Auto Finance loan, the dealer stands between you and the loan. And like any other dealer-arranged financing, the dealer doesn’t have to offer you the lowest rate you qualify for. Instead, the dealer might mark up the APR (typically between 1.00% and 3.00%) and pocket the difference as profit. This is called a finance reserve or dealer reserve.
At the same time, indirect financing can give you a streamlined experience. You can get your loan and buy your car in one fell swoop. Just be sure to receive multiple offers from other lenders before your visit with a TD Auto Finance dealer.
As an alternative to an auto loan, you could buy a car with a TD Bank personal loan. These are available in amounts from $2,000 to $50,000 and with terms from 36 to 60 months. You can use a personal loan for almost anything (such as other car-related expenses, like insurance).
However, compared to traditional auto loans, personal loans usually have a higher APR. Note that TD Bank personal loans are only available to borrowers in 15 states and the District of Columbia.
TD Bank company overview
TD Bank got its start in 1855 as the Bank of Toronto. It opened its first U.S. branch in New York City in 1919. Today, TD Bank is one of the largest banks in North America. It offers personal loans, mortgages and auto loans alongside its banking products.
How to get a loan with TD Bank
TD Bank offers auto loans through more than 6,000 participating dealerships in 50 states. The dealership’s Finance and Insurance (F&I) manager will likely handle your loan application. You’ll need to be ready to provide the information and documents commonly required to get an auto loan.
If you apply for a TD Bank loan jointly with another person, you’ll need to offer the same information for your co-applicant. Use a car loan documentation checklist to make sure you have everything you need ahead of time:
- Name
- Date of birth
- Address (including recent addresses if you’ve lived at your current residence for less than two years)
- Employment information
- Income information
- Driver’s license or other government-issued forms of ID
- Vehicle information
- Amount you’d like to borrow
The F&I manager will access your credit history, submit your loan application and inform you of the results.
Is a TD Bank auto loan right for you?
Like other indirect auto lenders, TD Bank doesn’t provide a way for you to shop their rates and terms before you apply. Come prepared with preapproved car loans before hitting the dealership. This can help you figure out if TD’s loan offer is a good deal. Because the dealer can bump up the rate, you may not receive the best available APR for you, so a preapproved offer from other lenders, like banks, credit unions and online lenders can help you comparison shop.
By filling out a single form with LendingTree, you can receive up to five auto loan offers from top lenders. With those offers in hand, you can better understand whether TD Bank’s offer is competitive.
How TD Bank auto loans compare
It’s impossible to compare TD Bank car loans with other lenders until you’ve gotten an offer from a dealer. For reference, here’s how TD Bank compares with similar banks. Please note that the rates and terms below apply to new car loans only.
Use an auto loan calculator to compare payments and total costs based on the loan offers you receive.
| TD Bank | Bank of America | PNC Bank | |
|---|---|---|---|
| Starting APR | Not disclosed | 5.34% | 5.64% (with autopay) |
| Loan terms | Not disclosed | 48-72 months | 12-84 months |
| Loan amounts | Not disclosed | From $7,500 | $5,000 to $100,000 |
| Min. credit score | Not disclosed | Not disclosed | Not disclosed |
Is a TD Bank loan right for you?
Like other indirect auto lenders, TD Bank doesn’t provide a way for you to shop their rates and terms before you apply. Come prepared with preapproved offers from other lenders, like banks, credit unions and online lenders, before you get the dealer’s financing offer. Because the dealer can bump up the rate, you may not receive the best available APR for you.
By filling out a single form with LendingTree, you can receive up to five auto loan offers from top lenders. With those offers in hand, you can better understand whether TD Bank’s offer is competitive.
Frequently asked questions
TD Bank doesn’t disclose its credit score requirements for an auto loan, but a lender’s lowest APRs typically go to borrowers with very good credit scores (starting at a 740 FICO Score).
TD Bank doesn’t disclose the interest rate on a car loan. The rates vary depending on your credit history, the amount borrowed and the loan term length.
Banks often charge lower rates on car loans than online lenders. However, banks also tend to have stricter eligibility requirements.
Still, it never hurts to shop around. Just make sure to get your shopping done within 14 days. That way, only one hard credit hit will count against you.