What a TD car loan is and who offers it

TD Bank (officially TD Bank, N.A.) is a major bank that offers auto loans for new and used vehicles. You borrow money from TD, use it to buy a car, and repay the loan in monthly installments over a set term — typically 36 to 84 months. TD holds the title to the vehicle until you pay off the loan, which is standard practice across the auto lending industry.

TD operates branches across the northeastern United States and also serves customers online. The bank competes with credit unions, other national banks, and captive lenders (financing arms owned by car manufacturers). Whether TD is the right choice depends on your credit history, how much you need to borrow, and what interest rate you can find.

Key Takeaways

  • TD Bank offers auto loans for both new and used cars, with loan terms ranging from 36 to 84 months depending on the vehicle and your situation.
  • Your interest rate depends primarily on your credit score, income, and the age and value of the car you are buying.
  • You can start the process online, by phone, or in person at a TD branch, and the bank can often provide a pre-approval decision within one business day.
  • TD requires a down payment, proof of income, a valid driver's license, and proof of insurance before funding the loan.
  • If you already bank with TD, you may see faster processing and access to existing customer rates.

Interest rates and what affects them

TD's auto loan rates vary based on several factors. Your credit score is the single largest factor — borrowers with scores above 700 typically receive lower rates than those below 650. The age of the vehicle also matters: loans for newer cars usually carry lower rates than loans for used cars, because newer vehicles hold their value better and are less likely to need expensive repairs.

The loan term you choose affects your rate as well. A 36-month loan usually has a lower interest rate than a 72-month loan, because the bank's risk is lower over a shorter period. However, a shorter term means higher monthly payments. The size of your down payment also influences the rate — putting down 20 percent or more typically results in a better rate than putting down 10 percent.

TD does not publish its rates publicly on its website. You must contact the bank directly — by phone, online, or in a branch — to receive a rate quote. Rates change frequently and vary by location and individual circumstances.

How to start the process

You can begin a TD auto loan in three ways: online at tdbank.com, by calling TD's auto lending department, or by visiting a branch in person. Online is usually fastest if you have your financial information ready. You will need your Social Security number, driver's license number, current income, and details about the vehicle you want to buy (or the vehicle you already own, if you are refinancing).

TD offers pre-approval, which means the bank tells you how much you can borrow and at what rate before you find a specific car. A pre-approval decision typically comes within one business day. This step is useful because it shows sellers you are a serious buyer and gives you a clear budget to work with on the lot.

If you are buying from a dealership, you can also ask the dealer if they work with TD. Many dealerships have relationships with multiple lenders and can submit your process to several at once, though this approach means multiple credit inquiries in a short time, which can temporarily lower your credit score.

Documents you will need

TD requires specific paperwork before it will fund your loan. You will need a signed purchase agreement or bill of sale for the vehicle, proof of your income (usually recent pay stubs or tax returns), a valid driver's license, and proof of auto insurance. The insurance requirement exists because TD holds the title — the bank needs to know the car is insured against loss.

If you are self-employed, TD may ask for two years of tax returns and possibly a profit-and-loss statement. If you have a co-signer (someone who agrees to repay the loan if you cannot), that person will need to provide the same documentation. Bring originals or certified copies; TD will not accept photographs or digital scans for most documents.

Down payment requirements and loan terms

TD typically requires a down payment of at least 10 percent of the vehicle's purchase price, though some customers put down 20 percent or more to find a better rate or lower monthly payments. The down payment reduces the amount you need to borrow and shows the lender you have "skin in the game," which lowers their risk.

Loan terms at TD range from 36 to 84 months. A shorter term (36 to 48 months) means you pay less interest overall but have higher monthly payments. A longer term (60 to 84 months) spreads payments over more time, lowering your monthly bill but increasing total interest paid. For used vehicles, TD may limit the term based on the car's age and mileage — a 10-year-old car might only may have access to for a 48-month loan, for example.

What happens after approval

Once TD approves your loan, the bank will fund the money and send it to the seller or dealership. The title to the vehicle will be issued in both your name and TD's name, with TD listed as the lienholder. You will receive loan documents showing your interest rate, monthly payment amount, due date, and the total number of payments.

Your monthly payment is due on the same date each month. TD allows you to set up automatic payments from your checking or savings account, which can help you avoid missed payments. If you pay off the loan early, TD will release its lien on the title, and you can then transfer full ownership to yourself.

If you fall behind on payments, TD will contact you to collect. After 60 days of missed payments, the bank may begin repossession proceedings, which means they can legally take the vehicle back. This action damages your credit score significantly and can take years to recover from.

Comparing TD to other lenders

TD competes with credit unions, which often offer lower rates to members, and with online lenders like LendingClub and Upstart, which may approve borrowers with lower credit scores. Captive lenders — financing through Ford, Honda, Toyota, or other manufacturers — sometimes offer promotional rates (like 0 percent APR) on new vehicles, which can beat TD's standard rates.

If you already have a checking or savings account with TD, the bank may offer you a rate discount or faster processing. If you do not bank with TD, you may find better rates elsewhere, especially if you have a strong credit score or belong to a credit union. The best approach is to get quotes from at least three lenders before deciding.

Frequently Asked Questions

Can I get a TD car loan if my credit score is below 600?

TD does lend to borrowers with lower credit scores, but your rate will be significantly higher than someone with a score above 700. You may also be required to make a larger down payment or choose a shorter loan term. Contact TD directly to discuss your specific situation.

What if I want to refinance my current car loan with TD?

TD offers auto refinancing, which means paying off your existing loan with a new TD loan, usually at a better rate. You will need the current loan payoff amount, the vehicle's title, and proof of insurance. Refinancing makes sense if your credit score has improved since you took out the original loan or if interest rates have dropped.

Does TD offer loans for used cars older than 10 years?

TD does finance used vehicles, but the age and mileage limits vary. Very old or high-mileage cars may not may have access to, or may only may have access to for shorter loan terms. Contact TD with your vehicle's year, make, model, and mileage to find out whether it meets their requirements.

What is the difference between a pre-approval and a final approval?

A pre-approval is a conditional offer based on the information you provide — it tells you how much you can borrow and at what rate, but is not a may provide. Final approval comes after TD verifies your documents and confirms the specific vehicle meets the bank's standards. Pre-approval is usually valid for 30 to 60 days.

Can I make extra payments toward my TD auto loan without penalty?

Most TD auto loans allow you to make extra payments or pay off the loan early without penalty. Paying extra reduces the total interest you pay and shortens the loan term. Confirm this with TD when you sign your loan documents, as terms can vary.