TD Auto Loan Rates in Canada



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Buying a car is often the second-largest purchase people make in their lifetime, but not everyone can afford to buy one right off the bat, and that’s where auto loans come in.

Like mortgages, auto loans are simple interest loans banks give to people to purchase vehicles. Unlike personal loans, which are used for anything (including buying a car) and can be secured against anything of value or even unsecured, Auto loans exist for the sole purpose of purchasing a vehicle and have no alternative uses. 

Auto loans are secured against the purchased vehicle, meaning that the vehicle is used as collateral for the loan and can be reclaimed if you default on payment. The loans are usually paid back within three to four years. Auto loans are popular because they have lower interest rates than personal loans. They are significantly easier to get and help people get their dream cars before they can afford them themselves, with convenient payment plans.

TD bank leverages its size and power to offer the best and most widespread Auto Loan Rates in Canada. In this article, we’re going to Review TD Auto Loan Rates for 2021.

TD Auto Loans

TD doesn’t directly grant loans; instead, it offers auto loans through its subsidiary TD Auto FinancingEstablished in 2011, TD Auto Financing provides auto loans through thousands of dealerships across Canada, but it does not offer loans directly to customers. TD Auto Finance also received 2018, 2019 and 2020 J.D. Power awards for ‘Highest in Dealer Satisfaction.’

TD Auto Loan Interest Rate Options

TD Auto Loan rates come in two options. Fixed rates or Variable rates.

Fixed Rates

These rates don’t change; they stay the same agreed term. It’s ideal because it lets you know exactly when your loan will be paid off.

Variable Rates

Variable rates are subject to change when TD Prime Rate changes. Effective March 30, 2020, the TD prime rate is 2.450%, which is relatively lower than previous rates. The current TD prime rate is the lowest in the last five years. The highest was 3.95% in October 2018. If you’re not worried about changing interest rates, then this is ideal for you. 

When the interest rate decreases, more of your regular payment will go towards your principal, enabling you to pay off your loan faster. However, if the rate increases, more of your regular payment goes towards interest, and your regular payments may then have to be adjusted accordingly.

TD Auto Loan Rates

TD Auto Loan rates are not disclosed; borrowers typically receive their interest rates when they apply at a dealership. Your credit history and income determine your interest rate.

However, TD Auto loan rates typically look like this.

Fixed-rate loans on vehicle model years between 2015 – 2021

  • Loan terms less than 84 months: 4.99% – 7.24%
  • Loan terms of 84 months: 5.74% – 7.99%
  • Loan terms over 85: 6.23% – 8.48%

Winter special; effective January 12 – February 11, 2021

  • Loan terms between 60 – 78 months: 4.39% – 5.69%
  • Loan terms of 84 months: 4.49% – 5.99%
  • Loan terms of 96 months: 5.73% – 7.23%

Fixed-rate loans for older model-year vehicles:

  • 2010-2012: 8.24% – 9.74%
  • 2013-2015: 6.24% – 7.74%

You can pay back TD auto loans between a period of 6 to 96 months on select vehicles.

TD Perks

Here are a few of the things TD Auto Loans excel at

1. Efficient Mobile App

TD Bank has a mobile app called TD Wheelsavailable on both IOS and Google Play Store. It lets you search and compare new makes and models of cars, trucks, SUVs, and minivans. TD Wheels also enables you to discover dealerships and available manufacturer discounts. Lastly, it comes with a payment calculator that’ll help you determine what payment you qualify for, and thus, help you choose the best vehicle for your needs.

The TD Wheels app lets you make particular requests such as selecting the make, model, and colour of the car you desire, comparing deals, showing affiliated dealerships near you, and more.

2. Interest Rate Options

As we previously stated, TD Auto loans allow customers to choose between fixed and variable interest rates, and this gives you greater control over your finances.

3. Vast Dealership Network

TD has a vast network of affiliated dealers nationwide. What this means for you is that you’re never far from a TD affiliated dealer and, thus, never too far from a TD Auto Loan.

4. New Arrivals

If you’re new to Canada and need a car, TD’s got you covered. TD Auto Finance will make you feel welcome and set you up for a car of your own.

5. Diversity

TD Auto Loans offer a diverse range of options, from electric or gas-powered cars. TD also provides loans for both new and used vehicles (up to five years old). Regardless of whether you’re buying your first vehicle or you’re looking to buy your next one, TD has a plan for you. 

TD Auto loans also include cars, RVs, Powersports vehicles (such as snowmobiles and ATVs), boats, and small business vehicles (such as delivery vans). Here is some information on the options:

  • Private vehicles

TD Auto loans provide additional services such as financing for warranties, gap insurance, tire storage, etc. They also offer payment extensions for qualified people, and lastly, if you happen to come into some cash, you can pay off your entire loan without a penalty.

  • Business vehicles

Get up to five vehicles for your business for a maximum value of $250,000 combined through term loans in your business name. This is open to sole proprietorships, corporations, partnerships and incorporated associations. Note that the loans are dependent on the strength of your business.

6. Special Financing Rates

TD bank offers special financing rates with a few select, featured manufacturers listed below.

  • Automotive

General Motors, Fiat Chrysler Automobiles, Chevrolet, Buick, Cadillac, Alfa Romeo, Dodge, Jeep, RAM, Hyundai

  • Powersports

Textron/Arctic Cat, Argo, BRP, Kawasaki, Polaris, Piaggio, Triumph, KTM and Suzuki

  • Marine

Campion Boats, Legend Boats

7. Payment options

TD has flexible payment plans that you choose yourself. It can be monthly, semi-monthly, bi-weekly or weekly.

All in all, TD bank, through its subsidiary, TD Auto Financing, offers one of the most extensive, accessible and efficient automobile loan services in Canada. An apparent drawback is that it doesn’t finance vehicle purchases from private owners; you can only utilize the program when you patronize an affiliated car dealership.

Disclaimer: Rates and product offerings are always changing, so this article might not reflect the current market situation. Please contact your financial advisor before making any financial decisions.


How do I qualify for a TD Auto Loan?

To qualify for a TD Auto Loan, you need to be at least 18 years old and a permanent resident of Canada. You do not need to be an existing TD Canada Trust customer to apply for an auto loan with TD Auto Finance.

How can I apply for a loan?

You can visit a dealership and ask for an auto loan with TD Auto Finance for a vehicle. You can also apply online, apply via the TD Wheels mobile app, or book an appointment with a specialist at the branch closest to you, or you can call TD on 1-877-390-5197 and apply over the phone.

How do I decide which loan is right for me?

TD offers a comparison service on its website. There, you can get a more in-depth comparison of all available TD loans. Compare Now.

How much does a loan cost?

TD has a vehicle loan calculator on its website, which you can use to calculate what your monthly payments, interest rates and loan duration could be, depending on the amount you borrow. Please note that the calculator is for illustrative purposes only, and actual payments may vary.

Can I get a TD Auto loan if I purchase a car outside a dealership?

At the time of writing this article, TD only offers auto loans through affiliated dealerships (over 4,500 across Canada). You can purchase outside a dealership with a personal loan. Visit the TD Personal Banking page to see your options.

Do I need Car Insurance with TD to get an auto loan?

You do not need to have auto insurance with TD to apply or get approved for a TD auto loan. Note that TD does require you have auto insurance depending on your needs.

What’s the difference between a TD auto loan and a personal loan?

TD Auto Finance loans are only offered through affiliated dealerships to purchase a personal vehicle, a recreational vehicle, or a small business vehicle. On the other hand, TD Personal loans are available directly to any applicant and are not restricted to the purchase of a car.

Does TD Auto Finance allow vehicles to leave Canada?

No. vehicles are not permitted to leave Canada, but you can move them out of the province with prior written consent.

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Jude Uchella


Avid researcher, freelance writer, and personal finance enthusiast passionate about financial education and literacy.

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Kareena Maya

Personal Finance and Travel Rewards Expert Contributor



Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.