TDAF is expanding its Commercial Financial Services program, which provides floor plan financing and commercial lines of credit to automotive dealerships.
“We are incredibly excited to continue growing our commercial business,” said Andrew Stuart, president and CEO, TD Auto Finance. “This decision signifies TD’s strong commitment to the auto space and our desire to offer a full suite of products and services to our dealer network across the U.S.”
Launched in 2011, TDAF initially offered its loans primarily in the east coast before expanding into the Midwest. Now it will move onto the west coast, first focusing on dealerships where it has already established partnerships for indirect auto lending to consumers, according to American Banker.
“Dealer principals are looking for lenders who understand the full range of their business needs. The commercial products are an integral piece of a dealership’s operations,” said Anne Kline, head of TDAF financial services. “Our Dealer Relationship Managers have a deep knowledge of all facets of automotive finance, and we are eager to bring this expertise to our expanded footprint.”
And while consumer debt levels have gone up in recent months, the bank’s executives aren’t worried about how the expansion will affect its risk profile. In fact, TD Bank NA does not engage in subprime auto lending. Instead, most of its indirect auto lending is primarily made in the super-prime and prime spaces — and a small portion is made in the near-prime space.
“We’re still very bullish on the auto space,” said Chris Howard, the head of the U.S. product group at TD Auto Finance. “We feel it’s a growth market.”
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