Toronto-Dominion Bank disclosed that its new auto-lending unit is approximately 25 percent ahead of its targets when it comes to signing deals with U.S.-based vehicle dealers. Last April, the bank acquired Chrysler Financial Corp. for approximately $6.3 billion and aimed to have around 5,000 dealers in its network.
Last Friday, TD Bank Group announced that Chrysler Financial is now named TD Auto Finance. According to Thomas Gilman, president and chief executive officer of TD Auto Finance, the unit has already signed up around 25 percent more than the 5,000 targeted dealers.
Toronto-Dominion aims to be a top 10 vehicle lender in the U.S. within three to four years and seeks to obtain assets of around $20 billion to $30 billion. According to the Federal Reserve, the demand for vehicle financing has accelerated after consumer borrowing in the U.S. rose in April for a seventh consecutive month.
TD Auto Finance has also taken over financing agreements that the parent company already had with about 4,000 dealers in Canada. Gilman expects the industry in Canada to grow at a slower rate than in the United States.
He said that the industry in Canada wasn’t hit as hard by the recession as the U.S. was. As a result, the ability to return to normal levels is not nearly as strong as it is in the United States.
In 2007, Cerberus Capital Management LP bought Chrysler Financial, along with the car manufacturer. According to TD Bank Group, the signage for TD Auto Finance will be placed in locations across the country in the following weeks. Also, advertising for the rebranded company will begin in late June.