TD Auto Finance car loans, prime to non-prime

Who TD Auto Finance is

TD Auto Finance is the part of TD Bank Group that finances vehicles sold by dealerships. You cannot apply to it directly; the dealer or the finance office presents your file, and TD answers with a decision, a tier and a set of terms. It lends across Canada, including both Ontario and Quebec, and it is among the largest indirect auto lenders in the country by volume.

What sets TD apart from the other banks on our bench is range. Most banks stop at near-prime. TD also runs a non-prime program under the same roof, which means a buyer with a bruised file can still end up with a bank loan, reporting to the bureaus as a bank loan, rather than going straight to a finance company.

The files TD approves

In our experience, TD reads income and stability first and the credit score second. The profiles below are the ones we see approved most often.

• Established credit with a clean recent history: the prime program, with the bank's best terms.
• A score in the middle with one or two late payments that are now current: near-prime, often on a newer used vehicle.
• Bruised credit with steady full-time income and at least a year on the job: the non-prime program, usually with a down payment or a trade.
• Thin or no credit history with solid employment, including newcomers with a work history in Canada: case by case, and stronger with a down payment.

What TD looks at

Four numbers drive a TD decision: gross monthly income, the payment as a share of that income, housing cost, and the vehicle's age and mileage. TD is stricter than the finance companies on the vehicle. A late-model car with reasonable kilometres qualifies for longer terms and better tiers; an older, higher-mileage car shortens the term or pushes the file to another lender.

TD also verifies income carefully. Expect to provide recent pay stubs or a job letter, and bank statements if you are self-employed. A file with a clear income story moves through TD quickly; one with gaps stalls.

What a TD approval looks like

A TD approval comes back with a maximum amount, a term and a payment. Terms are long on newer vehicles and shorter on older ones. The loan is open, which is the feature people value most: you can pay extra, pay it off early, or refinance when your credit improves without a penalty. Payments report to Equifax and TransUnion every month, so twelve clean payments on a TD loan visibly rebuild a file.

How to improve your odds with TD

Small changes to a file move it up a tier at TD more often than at any other lender we use.

• Bring a down payment or a trade. Even a modest one lowers the loan-to-value and often lifts the tier.
• Choose a newer vehicle with lower kilometres. TD rewards the car as much as the borrower.
• Have your income documents ready before the file is presented; a verified file is decided faster and more favourably.
• If a recent late payment is sitting on your report, bring it current first. TD weighs the last twelve months heavily.

TD where you live

TD lends on both sides of the river. The difference is the paperwork, not the approval: an Ontario buyer registers at ServiceOntario and pays HST, a Quebec buyer registers with the SAAQ and pays GST plus QST. If you live in Gatineau and the right car is on the Ottawa side, the vehicle needs an SAAQ inspection before registration, and the TD loan is written to match. We handle that sequencing so the approval and the registration line up. In Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador the same program applies; the purchase follows that province's rules, with HST at 14 or 15 percent, a current provincial inspection and registration at the provincial registry, and we handle that paperwork the same way.

When we place a file elsewhere

TD is our first call for a near-prime file on a newer vehicle. If the file is deeper non-prime, if the vehicle is older, or if income is mostly self-employed or cash-plus-stubs, Scotia Dealer Advantage or iA Auto Finance usually fits better. If the credit is clean and the buyer wants the shortest possible term, RBC or BMO can edge TD on the payment. We present to whichever of these will actually approve, and we tell you why.