Being a steady partner pays off in the end for auto lending giant
Whether it comes to your floor plan financing, or getting loans approved for vehicle buyers, being available and dependable for dealers is the name of the game when it comes to auto industry lending.
“Our approach has been to provide consistent support for dealers,” said Chris Morrison, Associate VP, Eastern Canada Sales, National Accounts & OEM Partnerships with TD Auto Finance in an interview with Canadian auto dealer. “Over the last 3-4 years that’s been more important than ever in the current rate environment and lenders exiting the market.”
Morrison said TD Auto Finance remained a steady partner for dealers through the pandemic, and dealers remember that loyal and consistent approach. “You earn your stripes when times are tough,” said Morrison,
“When times are tough and the credit cycle is tightening. That’s when we shine. We have shown our commitment to the industry.”
The competition for the dealership business among lenders is fierce, and staying close to customers is what gives TD Auto Finance an edge, said Morrison. “Yes we finance cars that people buy, but you have to know your customers,” he said. “We are visible, we sponsor events like the CADA Summit, our field reps are present in the market… We have high expectations of our field reps,” he said, adding they’re expected to see and connect with their dealer customers on a regular basis.
Indeed, dealers will have seen TD Auto Finance at lots of industry events, most notably as the exclusive sponsor of the annual CADA Summit held by the Canadian Automobile Dealers Association (CADA). TD Auto Finance also sponsors and attends a host of other dealership association events across Canada and puts on their own private dealer events, sometimes with other suppliers like Canada Night at NAD’eh or the Canadian International AutoShow.
For his part, Morrison said working with dealers is a perfect fit for him. “Growing up I’ve always liked cars, finance and people. In this industry we have a great group of entrepreneurs, often self-made,” he said. “I get the opportunity to work with and speak with these business leaders and see what they do in their local markets. I love this business.”
Morrison said TD Auto Finance also really pays attention to dealer feedback, including in rankings held by organizations like J.D. Power. TD Auto Finance has been ranked #1 in dealer satisfaction among non-captive non-prime lenders with retail credit, 6 years in a row by the J.D. Power 2023 Canada Dealer Financing Satisfaction Study.1
Morrison said they also continue to invest in technology and innovation to speed up and streamline their processes. “More approvals and faster is always better to score points with dealers,” said Morrison. “We are investing heavily in automation.”
He said even with the automated tools, however, the bank still needs tight processes in place to protect themselves and dealers from things like the increase in fraud that is a big concern for the industry. “There’s a balance between speed and quality — we streamline the process for our dealerships.”
He said they have provided fraud prevention training in person and virtually to help educate dealers on what to look for; how to spot a fake ID, red flags with customers, and identity theft.
TD Auto Finance also created and launched its own app, TD Wheels. It helps consumers compare new makes and find out about any OEM discounts and locate dealerships.
He said, most recently, TD Auto Finance, in collaboration with AutoVerify launched a dealer support program alongside an enhanced version of their pre-qualification tool (AV Pre-qualify) for customers.
It lets vehicle shoppers pre-determine the amount they can borrow (based on the info they provide) and see if they can qualify for an auto loan from TD Auto Finance, directly from an online listing on an OEM website or dealership website. “They can be pre-qualified before they go shopping,” said Morrison, adding the service has been well received by the industry.
REFERENCE:
1 TD Auto Finance received the highest score in the retail non-captive segment (2018-2021), and the retail non[1]captive non-prime segment (2022-2023) in the J.D. Power Canada Dealer Financing Satisfaction Studies, which measure Canadian auto dealers’ satisfaction with their auto finance providers. Visit jdpower.com/awards for more details.
