Toronto-Dominion Bank said its new auto-lending unit is about 25 percent ahead of targets for signing agreements with U.S. car dealers.
Toronto-Dominion acquired Chrysler Financial Corp. for about $6.3 billion in April and planned on having about 5,000 dealers in its network.
Chrysler Financial has been renamed TD Auto Finance, TD Bank Group announced Friday.
“In the last 70 days, we’ve been able to sign up about 25 percent more dealers than just the 5,000,” TD Auto Finance President and Chief Executive Officer Thomas Gilman said.
Toronto-Dominion hopes to become a top 10 auto lender in the U.S. within three to four years, with assets of about $20 billion to $30 billion. Demand for car financing has accelerated after U.S. consumer borrowing rose in April for a seventh consecutive month, according to the Federal Reserve.
TD Auto Finance has also taken over financing agreements the parent company already had with about 4,000 dealers in Canada.
“I think the industry in Canada will grow at a slower rate than in the United States,” Gilman said. “The industry up there didn’t have the recessionary hit as great as the U.S. did, so the ability to grow back to prior levels isn’t nearly as strong as it is in the United States.”
Cerberus Capital Management LP. Cerberus bought Chrysler Financial, along with the automaker, in 2007.
The TD Auto Finance signage will be installed at locations across the country in the next few weeks and advertising for the rebranded company will start in late June, TD Bank Group said.
Bloomberg contributed to this report