Vehicle Loans with TD Bank – Getting Started
TD Bank has become one of the bigger players in recent years, since acquiring car financing companies in Canada and the U.S.
It says its auto finance division now has $14.3 billion in “indirect” loans brokered by dealers on its books, which is up three per cent over last year.
That money was loaned to both regular and subprime borrowers, the latter being people who don’t have adequate credit ratings to qualify for regular financing.
“Subprime” became a household term after the economic crisis of 2008, which was partly caused by defaults on high-risk mortgages in the U.S.
TD Auto Finance offers a full spectrum of auto lending options, including non-prime loans in some markets, in Canada, they have a mature non-prime business with a rigorous lending criteria lending to those who fit within their risk appetite and satisfy thorough qualification criteria.
According to Canadian Auto World magazine, non-prime loans make up approximately 25 per cent of all auto loans arranged by dealerships in Canada
If 25 per cent of TD’s $14 billion in indirect auto loans are non-prime, the bank would stand to make approximately half a billion dollars a year, in interest payments alone, if all of the customers made their payments.
According to the Canadian Auto Dealers Association, delinquencies on all auto loans are at an all-time low.
The industry attributes that partly to relatively low monthly payments, stretched over terms as long as eight years. That also means many people owe — and pay — much more than their cars are worth.
The Canadian Banker’s Association refused to answer questions about rates, but sent a statement also stressing that default levels are low.
Banks in Canada are prudent lenders, and manage risk carefully and make sure borrowers are properly qualified and can withstand economic fluctuations,” said CBA spokeswoman Kate Payne.
Banks only lend to those who they believe can pay the money back, and the numbers back this up.
TD Bank Vehicle Loans – Prime and Non Prime
TD Financial Services seems to be the most aggressive buyer of Non Prime Car Loans in Canada. They offer higher interests rates then prime customers however they are flexible with their customers after a 11-12 month term. TD Financial Services has created a program that Not Only helps people with bad credit it’s helping Canadian Automotive Dealers too. Now Canadian Car dealers can offer Bad credit car loans to their customers and 12 months later get the customer back to re-write a New Car loans at far less Interest. In the beginning TD Financial Services grants the customer a vehicle loan with interest rates ranging from 16-29 Percent. However if the customer make 11-12 consecutive Monthly payments on time TD will allow the customer to trade in their existing Vehicle at any Canadian Car Dealer. Upon the Trade in the Bad Credit Car Loan customer can take advantage of much lower interest Rates from 8.9 – 9.9 Percent.
Auto Source works directly with TD Auto Finance offering solutions and flexible financing options for customers making automotive, recreational vehicle, Powersports and Marine purchases.
Auto Source has been helping customers for 20 years in the Non Prime – Sub Prime Car loan Market. They are specialists in evaluating your credit and work with you to over come your Bad Credit Issues. We also works with Consumer Proposal Companies in Canada to get you back on track should you not qualify for a Bad Credit Car Loan. They will work with you from start to finish getting your credit back on track!
If you are currently paying a high interest car loan with another loan company and have made 10 payments or more, we may be able to get you out of the high interest loan and into a new vehicle with much lower interest rates with TD Auto Finance. We’ve been helping thousands of Canadians get out of their high interest auto loans and into lower interest rates.