Toyota leverages high credit ratings to offer better leases

Article by Anita Panait, on October 28, 2013

Toyota Financial Services is leveraging Toyota Motor Corp.'s AA- credit rating and cash to offer low rates and keep customers coming back. Since the carmaker’s credit rating is higher than General Motors and Ford Motor Co., Toyota Financial Services could offer more loans and may even take on riskier borrowers.

Toyota Financial Services manages more affiliated dealers' direct loans and leases in the US than any other captive lender or wholly owned finance arm of other carmakers. Toyota likewise employs intense data systems to keep its customer from shifting to GM or Ford. Mike Groff, chief executive of Toyota Financial Services, remarked that their strategy is built around loyalty and retention.

He said that the unit has “deepened” its use and analytics of data to “take better care of customers to encourage them to go back to Toyota and to go back to the seller of the car that they have." The contest for US market share has become tighter as Detroit carmakers are offering very competitive offerings.

However, Toyota's US market share is unchanged in the first nine months of 2013 at 14.4 percent. The health of Toyota Financial Services allows the Japanese carmaker to maintain no-interest loans across its lineup as well as expand the use of low-cost leases as a strategy to entice both younger and lower-income buyers, Bloomberg was told by Larry Dominique, president of ALG Inc.

If you liked the article, share on:

Topics: toyota, leasing

Comments

Recommended

Nissan is commencing sales of the 2019 Nissan Altima on October 3, 2018 in the United States. As expected, the Japanese carmaker has already divulged the details and specs of...
by - November 26, 2018
Sports utility vehicles are still in heavy demand. Ford knows this very well as the American carmaker has seen sales of its SUVs surge dramatically by 28 percent in the...
by - November 26, 2018
BMW’s European customers who are looking forward to have a new range extender version of the 2019 BMW i3 (BMW i3 REx) will have to bear a bad news from...
by - November 26, 2018
Imagining the future of automotive luxury more than three decades from now seems to be a daunting task. It would be hard for a typical person imagine such future without...
by - November 21, 2018
Can a Dacia Duster be compared with a Ford Mustang? It would be difficult to do so as these vehicles compete in different categories and segments, have different price points...
by - November 20, 2018