TD Bank Auto Loans Review

When searching for the best auto loans, you may be curious if banking giant TD Bank offers auto financing. The answer is yes, but not in the traditional sense you may be looking for. TD Bank operates as an indirect auto financing company instead of as a traditional direct lender. TD Auto Finance is a subsidiary of TD Bank, one of the nation’s top 10 largest banks. TD Bank has over 150 years of service experience and serves over 26 million customers worldwide.

TD Auto Finance at a glance

What we like about it

The number one thing we like about TD Bank auto loans is the backing of TD Bank. Buying a car is a major purchase, and you want to know you’re working with a stable company that knows to deliver a top-notch experience. As the bank has been in business since its inception in 1855, expertise is not in question.

Additionally, TD Auto Finance offers extensive payment options for borrowers, providing great flexibility. The most popular payment options available include direct from a checking account, debit card, payment by mail, auto-debit, phone payments and CheckFreePay.

Things to consider

TD Auto Finance is not a direct lender. While this isn’t a negative, it can be confusing for people who want to get a car loan through the bank. To ensure your loan is handled by TD Bank, you have to select a dealer that works with the financing company.

Even if you’re a banking customer, you won’t be able to get a TD Bank auto loan unless you go to a dealer that works with the company. Luckily, that network is quite large. If you’re looking to purchase a car from a private seller or out-of-network dealer, you will be out of luck.

What you need to know

TD Auto Finance is an indirect auto financing lender. What this means is that unlike other lenders, you get a TD Bank car loan through a third party like a dealership. In other words, on the front end, it looks like you are getting your loan from the dealer, but all of the backend processes — and the company you make your payments to — is TD Auto Finance.

More importantly, this means your TD bank auto loan rates and repayment terms are set by the third party. All negotiations and contractual changes must be handled with the third party. Once the loan is signed, though, everything transfers over to the TD Bank auto Finance division and cuts out the third-party go-between.

Getting started with a loan through the company is a bit of a different process than with a direct lender. With direct lenders, you go directly to the company and request the loan rates, terms and financing that you need. If you want to work with TD Auto Finance, though, the process starts with finding a dealership that works with the bank and then requesting to finance through the company.

1. Search for a dealership that offers TD Bank car loans. Navigate to the TD Auto Finance website and use the dealer search function. You can put in your address or zip code and then search for participating dealerships within a 10 – 50-mile range. A quick search of several regions in the country shows a fairly expansive network.

2. Request financing through TD Auto Finance. Just because you purchase a car through a dealership that works with TD Auto Finance does not automatically mean that your loan will be set up through the bank. When you are negotiating your loan terms, request that your loan be serviced through TD Auto Finance. Some dealerships may do this automatically, but not all of them will.

Criteria and eligibility

TD Auto Finance does not post any information about the criteria needed to acquire a loan through the company. Additionally, the company does not offer any forms of pre-approval. If you want to secure a loan through TD Auto Finance from a participating dealership, you will need to contact the dealer for eligibility criteria. In general, eligibility for an auto loan involves a look at your financial situation, credit score, overall credit profile and the amount of the loan you are looking to secure.

TD Auto Finance vs. Fifth Third Bank

If you’re looking for a direct auto lender, Fifth Third Bank should certainly make your list of potential candidates. As opposed to TD Auto Finance, loans are available directly for new or used cars. Additionally, you’re able to secure refinancing through the lender, which is not offered through TD Bank.

To get an auto loan through Fifth Third Bank, you will need to have an eligible checking or savings account with the bank. What’s nice, though, is that additional relationship rate benefits are available for using autopay and based on your checking relationship with the bank. Fifth Third Bank also offers a no payment for 90 days option if you’re looking for some short-term relief following your purchase.

TD Auto Finance vs. Carvana

Borrowers with bad credit (and those with good credit) may want to consider Carvana. Yes, this is the company with the super-cool car-buying vending machines. Loans are available to anyone over the age of 18 that makes at least $4k per year and has no active bankruptcies. Loan rates and repayment terms are flexible, and you can secure a rate before purchasing that is good for 45 days.

Be aware that you will need to purchase a car in the Carvana inventory to qualify for financing. The company does not offer private seller financing or financing for cars purchased outside of the network. Carvana combines the car-buying process and financing process into one step under one roof for simplicity. That network is strong, with over 15,000 vehicles to choose from.