TD Bank Auto Loan Review 2024

TD Bank offers a wide variety of banking and lending products, including two types of loans that can be used to buy a car.

Auto Loans

Car loans are available through TD Auto Finance. Unfortunately, because TD Auto Finance is an indirect lender, it doesn’t publicly disclose its interest rates, loan terms or requirements.

You can use TD Auto Finance’s website to find dealers in your area that have partnered with the company. If you’re interested in working with one of these dealers, it’s a good idea to research your options from other lenders ahead of time so you’ll be prepared. Many lenders allow you to get preapproved and check your personalized rates with only a soft credit check that won’t hurt your credit—this will give you a baseline to compare against what the dealer offers you via TD Auto Finance.

Personal Loans

You could also consider a personal loan from TD Bank for a vehicle purchase. These loans range from $2,000 to $50,000 and come with repayment terms from 36 to 60 months. If you’re approved, you could receive your money in as little as one business day.

Unlike an auto loan, an unsecured personal loan doesn’t require collateral. However, because this is riskier for the lender, this kind of loan usually comes with a higher annual percentage rate (APR) and more stringent qualifications compared to a secured car loan.

TD Auto Finance doesn’t publish its eligibility criteria. While qualifications for an auto loan can vary by lender, here are some common requirements to keep in mind:

• Good credit: You’ll typically need good to excellent credit to get approved for an auto loan— a good credit score is usually considered to be 670 or higher. There are also direct and indirect lenders that offer car loans for bad credit, but these generally come with higher interest rates compared to good-credit loans.
• Verifiable income: Lenders want to see that you can afford to repay the loan, so you’ll need to provide proof of income and employment, such as tax returns or pay stubs. While exact income requirements depend on the lender, keep in mind that financial planners recommend limiting your car payments to 15% of your monthly income.
• Low debt-to-income (DTI) ratio: Your DTI ratio is the amount you owe on monthly debt payments compared to your income. To qualify for an auto loan, your DTI ratio should be no higher than 50%—though some lenders might require lower ratios than this.
• Down payment: Most lenders require you to make a down payment to get approved for a car loan, especially if you have less-than-stellar credit. It’s a good rule of thumb to put at least 20% of the purchase price down for a new car or at least 10% down for a used car. While some lenders and dealers might offer no-down-payment loans, these generally come with higher interest rates.

While TD Auto Finance doesn’t disclose fees, there are several common vehicle taxes and fees that you can expect to pay with a dealer purchase, including:

• Sales tax
• Title and registration fees
• Documentation fee
• Delivery fee (if applicable)
• Reconditioning (for used cars)

If you’d like to get an auto loan from TD Auto Finance, follow these steps:

1. Compare lenders. Even if you’d like to work with TD Auto Finance, it’s a good idea to shop around and compare your options from other lenders to make sure you get the best deal possible. Consider getting preapproved by the lenders you like most so you’ll have an idea of the auto loan rates and terms you could qualify for.
2. Find a partner dealer. Use TD Auto Finance’s website to find dealers in your area that have partnered with the company. You’ll also need to make sure that the dealers you consider have the car you want available.
3. Meet with the finance office. Once you’ve chosen a dealership, you’ll have to meet with the dealer’s finance office to negotiate the deal. If you’ve been preapproved by another lender, bring the preapproval letter with you—this might convince the dealer to negotiate better terms with TD Auto Finance or other lenders they’ve partnered with. Ultimately, be sure to focus your attention on overall loan cost instead of monthly payments, take your time with questions and inquire about any potential fees.
4. Fill out an application. If you’re happy with the negotiation and want to proceed with dealer financing, you’ll need to complete a full application. Be prepared to provide personal information, income documentation and proof of auto insurance.
5. Complete the transaction. If you’re approved for financing, you’ll need to sign your loan documents. Also be ready to fill out required paperwork for the Department of Motor Vehicles (DMV) and pay mandatory fees, such as for registration and title.

Related: Best Auto Loan Rates

If you’re turned down for an auto loan, reach out to the lender to see why your application was denied. Depending on the information you receive, you could:

• Build your credit. If you have less-than-stellar credit, you might need to focus on building your credit score. There are several ways to do this, such as making other loan payments on time or paying down credit card debt.
• Reduce your debt. If your DTI ratio is too high, you can improve it by paying down other debts you have, such as credit cards or personal loans.
• Add a co-signer. If you can’t qualify for an auto loan on your own, consider applying with a co-signer to increase your approval chances. A co-signer can be anyone—such as a parent, another relative or a trusted friend—with good credit who is willing to share responsibility for the loan. Just keep in mind that if you can’t make your payments, your co-signer will be on the hook.
• Consider other lenders. Each lender has its own individual requirements, which means you might have an easier time qualifying with one compared to another.
• Choose a less expensive car. Depending on why you were denied, you might be able to get approved for a smaller loan amount for a less expensive vehicle.

As of October 4, 2022, TD Auto Finance’s Better Business Bureau (BBB) rating is 1.07 out of 5.00 stars. The company has a C rating from the BBB, as well—note that this rating isn’t based on customer reviews but rather on how the company responds to complaints, its time in business, size and other factors.

The Consumer Financial Protection Bureau (CFPB) has received 228 complaints regarding TD Auto Finance as of October 4, 2022. Most complaints were about billing problems, fee issues or problems with getting a car title following a loan payoff.

We reviewed TD Auto Finance based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated TD Auto Finance based on the weighting assigned to each category:

• Loan cost: 30%
• Eligibility and accessibility: 25%
• Loan details: 20%
• Customer experience: 15%
• Application process: 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges, applicable fees and available discounts. We also looked at minimum credit score requirements, maximum accepted mileages, whether each lender accepts co-signers or co-borrowers and the geographic availability of the lender.

Finally, we evaluated TD Auto Finance’s customer support tools, borrower perks and features that simplify the borrowing process—like online application options, mobile apps and turnaround time.