Shopping for a new car is exciting, and some dealerships even work with financing companies like TD Auto financing to help you pay for the car. Now that all sounds well and good, but you need to be careful that you are getting the best rates when a situation like this arises.
If you find a vehicle you like and then have the dealership find financing for you, you are putting a lot of faith in them.The dealership should look to get a variety of offers for you to choose from. And you should have the opportunity to choose the best offer for you.
One of the companies that bids on financing at dealerships is TD Auto Financing and since it covers so many dealerships in North America, you’re likely to run into it. And that’s why we’ve looked into the pros and cons of using this option and the details of that are up next.
Overview of the Company
TD Auto Finance was founded in 2011 and provides car loans through more than 6,000 dealerships, but it does not directly provide loans to consumers. That being so if you’re shopping around for vehicles and having your credit run by a dealer that partners with TD Auto Finance, you could get an offer from the lender.
Although TD Auto Finance claims to offer affordable interest rates and flexible loans, the dealer you are considering purchasing from should never accept only one loan offer. TD Auto Finance’s parent company, TD Bank, has served businesses and customers for more than 150 years.
In 2019 it was ranked highest among retail banks in customer satisfaction. It is one of America’s 10 largest banks and has over 9 million customers in total.
What Are The Pros of TD Auto Financing
TD Auto Finance is an indirect lender that offers financing for new and used vehicles through the 6,000 dealerships in which it partners across the US. The company claims to deliver competitive interest rates and conditions on its retail financing platform, fast credit decisions, and flexible lending options.
It has also moved in recent years towards the acceptance of more customers with less than ideal credit ratings. Additionally, TD Auto Finance allows the transfer of equity, which ensures that someone else will claim your car loan if you have trouble paying it.
What are the Cons of TD Auto Financing
TD Auto Finance does not provide direct-to-consumer financing, so you’ll have to visit a participating dealer to apply for a TD Bank car loan. Since TD Bank does not have an electronic pre-approval process before the dealer approves your application, you won’t know what loan amount you apply for.
Car shopping without a pre-approved loan will make it more difficult to find a good offer and will also make it difficult for you to actually choose a vehicle since you don’t know if your loan will be approved.
Another downside is that there is a penalty for paying off the loan early. It cuts into any interest savings that you receive from the early repayment of your investment. Besides, the fee is not paid by many other lenders.
It is also worth noting that there are no refinancing solutions available at TD Auto Finance. And if you’re waiting for your new car loan to be refinanced, you should consider another lender.
Conclusion
TD Auto Finance has an extensive presence in more than 6,000 dealerships throughout the United States which means you can access their financing in many places. But on the con side are things like no refinancing options or pre-approval process.
If you end up receiving a loan offer from TD Auto Finance, compare it to at least two other quotes before making a decision. This will help to ensure you get the best deal you can find.