TD Auto Finance is expanding prime and near-prime auto lending and shifting to more used-vehicle originations in the changing U.S. credit environment.
That's a major revision for a lender traditionally known for its preference for superprime borrowers with FICO scores above 760. But TD Auto sees opportunity opening in the prime and near-prime segments as other lenders push upward toward safer segments and tighten lending standards, said Senior Vice President Chris Howard.
"We were 95 percent superprime two years ago," Howard, head of the U.S. product group at TD Auto Finance, told Automotive News in a phone interview. "But this year we are running about 50 percent prime, 15 to 18 percent near-prime and the balance superprime."
TD Auto's loan portfolio has grown 6.6 percent since March 2016, with prime loans up 15 percent and near-prime 49 percent higher, the company said.