What Happens If You Miss A Car Loan Payment With TD?

What Happens If You Miss A Car Loan Payment With TD?

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated August 25, 2022

A car is a convenient way to get around quickly and comfortably, but they can be very expensive to purchase without a little financial help. That’s where car loans come into the picture, and TD is one of many banks that offers such financing.

But what happens if you miss a car loan payment? After all, part of the deal when you take out a car loan is that you need to make regular payments until the loan is paid off. So, what type of repercussions could you face if you fail to keep your end of the bargain? 

Let’s take a closer look at missed car loan payments with TD to find out what may happen if you miss your payments, and what alternatives may be available to you if your loan becomes too much of a financial burden. 

What Happens If You Miss A Car Payment At TD?

Missing a car payment may come with repercussions if you don’t make up for it within a certain period of time. Generally speaking, here’s what you can expect if you miss a car payment at TD: 

Less Than 30 Days Late 

The way TD defines a “missed” payment depends on the conditions of your loan contract. However, generally, if you miss a payment that is less than 30 days late, the most TD will do is have a representative get in touch with you to remind you to make a payment.

Depending on your car loan contract with TD, you may also be entitled to a grace period, which means you can make up for the missed payment within that specified time period without penalty. But once that grace period expires, you’ll likely be charged a late payment fee if the payment still isn’t made. 

More Than 30 Days Late 

If you miss a car loan payment and it lapses over 30 days, you’ll be dealing with more severe repercussions besides a late payment penalty fee. The consequences depend on how long the payment is overdue.

Lower Credit Scores

Car loan payments that are more than 30 days late are generally reported to the credit bureaus. In this case, your missed payment will be reflected on your credit report, which may have a negative impact on your credit scores. 

Vehicle Repossession

When you take out a car loan, your lender places a lien on your car until you pay the loan off in full. As such, you don’t technically own the car until the loan is fully repaid. This gives TD the right to repossess your car if you miss your car loan payments. Generally, lenders will only enforce vehicle repossession if you’ve missed 2-3 payments in a row. 

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What Options Does TD Offer If You Can’t Make Your Car Loan Payments? 

If you’ve found yourself in a financial predicament that is making it difficult for you to keep up with your TD car loan payments, you may have some options available to you:

TD Car Loan Loan Deferral 

TD offers short-term car loan deferrals that are designed to help you manage your payments while you’re having temporary financial troubles. Deferring your TD car loan payments means you’ll be able to skip your payments over an agreed-upon time. This is a great option if you think you’ll be able to get back on your feet after a while, but simply need a temporary break from your financial obligations.

It’s important to note that these deferred payments are not cancelled; you’ll still need to make up for them. In most cases, the skipped payments will be added to the end of the loan term. 

Another important thing to note is that the interest on the deferred payments will still accrue. That means you could be paying a little more by the end of the loan term. 

Who’s Eligible For A TD Car Loan Loan Deferral? 

If you choose to go the payment deferral route, you’ll need to apply and get approved with TD first. In order to be eligible for car loan deferral with TD, you must meet the following criteria:

  • Your car loan must be in good standing
  • The loan term doesn’t expire for at least 6 more months 
  • The remaining balance is over $1,000
  • You have more than one payment remaining on the loan
  • You have not applied for more than 2 months of loan payment deferrals over the previous 12 months

TD Car Loan Modification 

If TD agrees, you may choose to modify the terms of your car loan to help make it more affordable for you. This may involve having the interest rate reduced, extending the loan term to give you more time to repay it, or both.

You’ll need to call TD directly at 800-222-5522 to discuss your options to see if you qualify for loan modification and to choose the route that best suits your particular situation. 

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Note: Program is currently not offered in Quebec.

Does TD Offer Financial Assistance If You’re Already Facing Repossession? 

If your loan is already considered in default and your lender is taking steps to repossess your vehicle as a result, you may not have a lot of time left to rectify the situation. In this case, you’ll need to call TD immediately to see if there is any way to stop the repossession from being carried out. 

While your options may be dwindling at this point, there may still be a possibility that something can be worked out, even after repossession has started. But you’ll need to take immediate action. 

Can You Refinance Your Car Loan At TD? 

If you’re looking to make your car loan payments more affordable, refinancing your car loan with TD may be an option. Refinancing simply means replacing your existing car loan with a new loan under different terms and interest rates. 

If you can refinance your loan to a new loan with a lower interest rate, you can save money over the life of the loan and reduce your monthly payments. Or, you could refinance with a longer loan term that would give you more time to pay down your loan. Again, this would help reduce your monthly payments, though you may be paying more in interest overall. 

Benefits Of TD Car Financing

There are a few good reasons why you might want to look to TD for your next car loan:

  • No prepayment penalty. Some lenders charge an early repayment penalty fee, but with TD, you’re free to repay your loan before the due date without facing any additional charges. So, if you come across some extra money that you can put towards your car loan, you can pay it off early to save some cash and take one extra bill off your plate.
  • Defer your loan payments. TD lets you defer your loan payments over a specified time period to help you get back on your feet. If you’re facing temporary financial issues, skipping a couple of payments can be a great option.
  • Long loan terms. You can take as long as 84 months to repay your TD car loan, which can help you better fit payments within your budget. 
  • Flexible payment schedules. Choose between weekly, bi-weekly, or monthly installments to pay off your TD car loan.
  • No down payment required. You may be able to qualify for a TD car loan without having to make an upfront down payment. 
  • Available with thousands of dealers. More than 4,500 dealerships across Canada work with TD to issue car loans, so financing with TD is easily accessible. 

TD Car Financing Overview

If you’re thinking of applying for a car loan with TD, take some time to understand the financing option offered: 

Private Sale Car Loans 

If you’re buying a vehicle from a private seller, you can apply for a personal loan with TD to access the funds needed to pay for the vehicle in full. Rather than taking out a car loan with a dealership, you’re paying the seller in cash with the funds received via a TD personal loan. With TD, you can get a personal loan for up to $50,000 with loan terms ranging from 36 to 60 months. 

RV, Marine, and Sport Vehicle Loans

In addition to traditional vehicles like sedans, SUVs, and trucks, you can also finance the purchase of other vehicle types, including RVs, boats, motorbikes, and others. Loan terms vary depending on the vehicle type. 

New and Used Car Loans

Thousands of car dealerships across Canada work with TD to provide car loans for both new and pre-owned vehicles. Loan terms for standard vehicles are offered up to 96 months.

Ways To Apply For A TD Car Loan

You can apply for a car loan from TD in any one of the following ways:

  1. Call or visit a TD branch. You can apply the traditional way by visiting a physical TD branch or by calling TD to speak directly with a representative to help you get the application process started. 
  2. Apply online. Alternatively, you can visit the TD website and apply online. If you choose the online route, you’ll need to have an online TD account set up to complete the application. If you don’t already have an online account, you’ll need to book an appointment to have one set up. 
  3. Apply via the TD Wheels app. TD has a dedicated app designed specifically to help you find your ideal vehicle, compare competitive financing options, and apply for loan pre-qualification when financing through TD Auto Finance. The TD Wheels app can also help you streamline your budgeting.  

TD Car Loans FAQs

Can I make additional payments to my TD car loan?

Yes, you can repay your loan early by making additional payments without being charged any additional fees such as prepayment fees. 

Can I get a TD car loan with bad credit?

Every borrower is different, so you’ll need to speak with a TD representative to find out if your bad credit score will prevent you from getting approved. If you have a strong income, manageable debt, and a decent down payment, you may be in a better position to secure a car loan with TD without a good credit score. 

Can I change my TD auto loan due date?

TD may be willing to change your loan due date, depending on your situation. You’ll need to discuss your circumstances by calling TD directly.

Final Thoughts

When you take out a car loan, you agree to make timely payments until the full loan amount is eventually paid off. But if you miss payments, there could be a few different negative outcomes for you, some worse than others. If you find that your car loan from TD is a bit too much for your budget to handle, call them right away to discuss what options may be available to you.


Rating of 5/5 based on 1 vote.

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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