Consumers who are nervous about making the commitment to buy a new or used car now have some added protection from a new loan protection service introduced this week by TD Auto Finance. The new vehicle return program is designed to provide financial support to any customers who experience a “life changing event” like involuntary job loss or serious disability.
“In the current economic climate, we understand investing in a new car is a big financial decision,” says Andrew Ojamae, Director of Sales, Auto, RV & LV, TD Auto Finance, in a news release. “TD Auto Loan Protection lets Canadians drive away in their new cars with less worry by knowing they can potentially return their vehicle should their circumstances change due to a covered life event.”
The TD Auto Loan’s coverage protects buyers from:
- Involuntary job loss;
- Physical disability;
- Loss of a driver’s licence due to an eligible medical condition;
- International job transfer (not available in Alberta);
- Accidental death (Not available in B.C.); and
- Self-employed personal bankruptcy.
Additional features and benefits include:
- No limit on amount financed;
- Applies to new and used personal vehicles, excludes commercial and recreational vehicles;
- No pre-existing health exclusions; and
- No medical examinations or health questions.
All new and used personal auto loans financed through TD Auto Finance now automatically include one year’s complimentary coverage. TD Auto Loan Protection may provide payment of up to $7,500 of the remaining loan balance, after the proceeds of the sale of the vehicle are applied to loan balance, less the cost of repairs. The customer could only be responsible for paying any balance left after the benefit is applied (and the cost of any repairs).
In an interview with Canadian auto dealer, Ojamae explained that the program is now being deployed with 4,000 point of sale and merchandising kits being delivered to dealers across Canada. “We truly believe that this is something that has such strong consumer benefit that it can be a differentiator for us and for the dealer. We think it will really catch on once the consumer becomes aware,” says Ojamae.
“There is naturally apprehension and anxiety around a purchase of that size,” says Ojamae. “We thought a product of this nature would increase customer comfort levels by reducing those apprehensions.”
Employment and health circumstances sometimes change unexpectedly and Ojamae says the bank wants to offer protection. The bank has been working on this product for years, and it’s not just related to today’s economic climate, because issues like job losses and health concerns are unexpected and can happen at any time to anyone.
This new product is free for dealers and consumers. Ojamae says that he expects this new offering will help dealers sell and finance more vehicles. “The dealers who really invest the time to understand where to use this product will be the ones that benefit the most,” says Ojamae, adding that the bank will be offering resources and training to help dealers and their staff learn more about how it all works.
Ideally, the loan protection should be introduced early in the sales process to help buyers feel more comfortable with their vehicle purchase, he says.
This new service is now automatically included on all new and used personal vehicle loans that TD Auto Finance Canada does through their accredited dealer network.
“To our knowledge, we are the only lender who is including this type of coverage complimentary on all auto loans. We think because of that, that this product differentiates us in the marketplace. Obviously, we want consumers and dealer partners to consider this product when they are choosing who they want to finance their next vehicle with,” says Ojamae.
Visit: www.tdautoloanprotection.com for details.
