TD Bank Auto Loan Rates

Point of Interest

TD Bank auto loans are not available directly to borrowers; instead, TD Auto Finance services auto loans through its network of dealerships when customers finance a vehicle.

A TD Bank auto loan is offered indirectly by TD Auto Finance, a subsidiary of TD Bank. TD Auto Finance was established in 2011 and offers auto loans through more than 6,000 dealerships, but it does not offer loans directly to customers. Being so, if you’re shopping around for vehicles and you let a dealer who partners with TD Auto Finance run your credit, you could receive an offer from the lender. While TD Auto Finance claims to offer competitive interest rates and flexible loans, you should never just consider one loan offer from the dealer you are considering buying from.

TD Auto Finance’s parent company, TD Bank, has served businesses and consumers for more than 150 years and was ranked highest in customer satisfaction among retail banks in 2019 by J.D. Power. It’s one of the 10 largest banks in America and serves more than 9 million customers in total.

How TD Auto Finance stacks up


  • Considers borrowers with less-than-average credit
  • Available in over 6,000 dealerships
  • Reputable parent company


  • Doesn’t offer loans directly to consumers
  • Prepayment fees
  • No refinancing options

What’s interesting about TD Auto Finance

TD Auto Finance is an indirect lender that provides financing on new and used cars through the 6,000 dealerships it partners with across the United States. The company claims on its retail financing site to offer competitive interest rates and terms, fast credit decisions and flexible loan options. It has also shifted to approving more customers with less-than-perfect credit in recent years. Further, TD Auto Finance allows for the transfer of equity, which means someone else can assume your car loan if you have trouble paying it.

Things to consider

TD Auto Finance doesn’t offer direct-to-consumer financing, so to apply for a TD Bank auto loan, you’ll need to visit a participating dealer in person. Because TD Bank doesn’t have an online pre approval process, you won’t know what loan amount you qualify for until the dealer processes your application; car shopping without a preapproved loan can make it harder to negotiate a good deal. No pre-approval process can also lead to an awkward situation if you overestimate how much car you can afford or get a surprise denial at the dealership.

Another drawback of going with this lender is that there’s a prepayment penalty for paying off your loan before the term is up. This cuts into any interest savings you’ll get from paying off your loan early. Plus, many other lenders don’t charge this fee.

It’s also worth noting that TD Auto Finance doesn’t offer any refinancing options. So if you’re looking to refinance your current auto loan, you should find another lender.

Alternatives to TD Auto Finance

TD Auto Finance vs. Capital One

Capital One provides financing for new and used cars purchased through any of their 12,000 participating dealers. The minimum loan amount is just $4,000, so even if you don’t want to spend a lot on your car, you’ll still be able to get financing.

You’ll also be able to get prequalified online before you head to the dealership, which is a big plus.

Capital One also provides refinancing options for existing loans, which is something TD Auto Finance doesn’t offer. You can refinance car loans between $7,500 and $50,000 to get a better interest rate and save money.

TD Auto Finance vs. Open Road Lending

Open Road Lending offers loans for both new and used cars. It has competitive interest rates as low as 1.9% and an easy online preapproval process. You can get a decision in as little as a few hours and go shopping for your brand new car the same day.

This lender also has refinancing options and it saves customers who refinance an average of $100 per month.

Additionally, Open Road Lending offers potential borrowers a database that shows you exactly what other buyers in your area have paid for the new or used car you’re interested in. That way you have some extra negotiating power and know whether or not your car dealer is offering you a good deal.

TD Auto Finance vs. Carvana

While TD Auto Finance offers car loans through dealerships, Carvana is its own dealership. By taking out the middleman of car-buying, Carvana is able to supply and finance vehicles to borrowers as a one-stop-shop for car buying.

Applicants with bad credit can still be approved, as long as they are 18 years old, make at least $10,000 a year and have no active bankruptcies. If you want to finance and buy your car all in one place — just like a dealership — then Carvana is a good option.

The final word

TD Auto Finance has a far-reaching presence in over 6,000 dealerships across the U.S. It is also a branch of the reputable parent company, TD Bank. Unfortunately, you can’t apply directly with the lender–you’ll have to go through a participating dealer. If you end up getting a competitive loan offer from TD Auto Finance, be sure to compare it to at least two other quotes before making a decision. This will help to ensure you get the best deal available to you.