TD Auto Loans Review (Updated 2024)
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Discover the methodologyDid you know that nearly 60% of all cars bought in Canada each year are bought with financing? The majority of Canadians simply don't have the ready cash required to buy a vehicle. That's why car loans are such a useful financial tool. By spreading the cost of an auto purchase over a longer period of time, people are able to upgrade their cars without sinking their household budget.
In this review, we will introduce TD's car loans, the TD Canada car loan interest rates, the TD car loan requirements and how to get a loan with them today.
Good to know
TD: the basics
- TD Bank is part of the TD Canada Trust
- It has been in operation since 1949
- Over 11 million customers
- TD is headquartered in Toronto
- There are 89,000+ employees
Our TD auto loans review: Canada's favourite auto loan?
TD Bank offers flexible car loans. TD has a large number of partner dealerships and you can take out a loan as you buy the car and drive away the same day. TD also offers generous loans for the purchase of second-hand cars and recreational vehicles. With a large number of physical branches and dedicated customer service lines, TD scores well for openness and customer service satisfaction. Some TD car insurance reviews however have pointed out that TD does not share its interest rates online which makes it harder for potential customers to compare TD's offerings with those of its competitors.
Pros
- Buy a new or used vehicle
- Up to eight years (96 months) to pay it off
- Enjoy competitive rates, flexible terms and good payment options
- Pick a fixed or variable rate
- Flexibility – you can extend your payment when qualified
- Choose a repayment schedule that is great for you
- Pay off your loan early without penalty
- Apply for only the amount you need for the car
Cons
- Interest rates are not available on the TD website
- No discounts
What types of car loans does TD offer?
TD offers auto loans which are available from partner dealerships all across Canada. These loans have flexible terms and repayment schedules but the interest rates are not available online. TD does offer its customers a choice between fixed and variable interest rates.
TD also has a Private Sale Vehicle Loan. This is a loan which is available for second-hand cars as well as recreational vehicles and motorbikes. This loan can be purchased in-branch or by speaking to a TD loan representative over the phone. There are some differences depending on how old the second-hand vehicle is, which we have laid out for you in the table below.
| Offers | SUVs, trucks and vans | SUVs, trucks and vans | Motorhomes, trailers, motorcycles, snowmobiles and ATVs | Motorhomes, trailers, motorcycles, snowmobiles and ATVs |
|---|---|---|---|---|
| Age of model | Less than 5 years old | More than 5 years old | Less than 5 years old | More than 5 years old |
| Loan | Check with advisor | $50,000 | Check with advisor | $50,000 |
| Where to apply | In office | Online | In office | Online |
TD also offers a Personal Line of Credit and a Secured Line of Credit. These are interesting alternative methods of borrowing money which you could use to finance a car purchase. A line of credit is a type of personal loan that limits the amount you can borrow and the amount of debt you can get into. A Secured Line of Credit is a HELOC, which means that it uses your house as collateral, making it a type of secured loan. This reduces the risk for the lender and allows them to offer you better interest rates and repayment limits.
TD car loan rates
TD car loan interest rates tend to be in the range of 4.4% to 8.8%. There are options for both fixed and variable car loan interest rates. TD bank car loan rates depend on a spread of different factors that are specific to you such as:
- What is your credit history?
- How much are you borrowing?
- How long a term do you want?
The shorter the term limit of a loan, the higher the monthly payments are likely to be, but the lower the interest rates. Longer-term limits mean higher interest rates but lower monthly payments. Though the monthly payments are lower, longer-term repayment plans tend to end up costing more overall. Lines of credit only charge interest on money that is withdrawn and spent.
Before deciding on a TD car loan why not compare their car loan rates with those of other lenders?
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Car loan calculator TD
On the main website, you can find the TD bank car loan calculator which you can use to calculate interest rates and monthly payments.
But did you know that you can also use our own car loan calculator which can be used to calculate car loans from all lenders, not just TD? Enter the sum that you are borrowing and then the amount that you wish to use as a downpayment. Then, you can adjust the term of the loan and the interest rate to determine how much monthly payments will be, as well as the total interest paid.
Can you get a TD car loan deferral?
If you are unable to make a payment on your car loan TD will let you defer or extend payments. While this can be very helpful it remains important to recall that interest will accumulate continually through the deferral period. You should never agree to a contract without thoroughly reading the terms and conditions. You can talk through deferral and rescheduling options on repayments with a financial advisor by calling the TD car loan contact Canada number: 1-866-694-4392.
Watch out!
Your repayments could go up when a deferral ends.
TD auto loans have flexible repayment options. You can reduce or increase the amount you pay monthly in order to adapt to a volatile financial situation. Another option is taking out a TD Personal Line of Credit. This offers you more protection if you aren't sure you will be able to keep up with repayments. Lines of credit have in-built limits and term extensions that can stop debt from getting away from you.
How do you apply for a TD car loan?
You can take out a TD car loan on the spot at any partner dealership and drive away with your car the same day. To find your closes cooperating dealership go to the TD website, find the Auto Loans page and hit the Find A Dealer button. This will bring up a search form that lets you enter your address and find your nearest option.
When taking out a loan at a dealership you will be asked for:
- Two pieces of national photo ID
- An employment letter and/or payslips
- A utility bill
- Information about assets and any existing loans
Alternatively, you can call a financial advisor directly on the TD auto loan contact number: 1-866-694-4392.
Before signing a TD car loan, compare rates! Our comparison tool offers quotes from dozens of lenders in just seconds. Find the best rate for you.
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Can you refinance a TD car loan?
If your TD auto loan is proving problematic for you, you may want to consider refinancing. Refinancing can be a great solution if you find yourself in financial difficulties. A second lender (or the primary lender under different terms) agrees to buy the outstanding debt on a loan. This lender then signs a new contract with you with new terms. These new terms could be extensions of the length of the loan or lower fixed interest rates.
Refinancing a loan is definitely of interest to borrowers who have improved credit scores, and who have managed to gain a better score since they took the original loan. Refinancing with this new and improved credit score can result in a new loan with lower monthly payments and generous repayment terms.
Can you get a TD car loan with bad credit?
TD may still decide to offer you a car loan even if your credit history isn't great. Customers with a history of bad credit may be subject to more stringent conditions. TD might ask them to commit to tough repayment schedules, or could request that the loan is secured (home equity, for example) or TD can ask for higher monthly repayments. You would still need to fulfill the following criteria, however:
- You must not be under the age of majority for your province
- You must not be a resident of another country
- You must not have declared bankruptcy within the last 7 years
Good to know
Are you interested in repairing your credit score? Take a look at our guide to improving your credit.
How to check a TD car loan balance?
Your TD auto loan balance can be checked by accessing your online account. Use your TD car login to access your EasyWeb account.
Once logged in you can check your balance, make early repayments, ask for deferrals and perform all other monitoring and adjustments you might need to do.
How to pay off a TD car loan?
TD will debit repayments from your bank account either weekly or at the intervals stipulated in your contract. Remember that TD allows you to alter your repayment amounts. TD does not charge early payment penalties which can be done online through their EasyWeb intranet. You can pay in three different ways
- Use your TD auto loan login on EasyWeb
- Make an appointment in any TD branch and bring a cheque
- Pay over the phone at 1-866-694-4392
Interested in a car loan that doesn't directly debit your bank account? Use our online comparison tool.
Dreaming of a new ride?
