Toyota Secret Weapon Is Financing Arm Detroit Can’t Match: Cars
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Toyota Motor Corp.’s in-house lender is leveraging the automaker’s AA- credit rating and cash to offer low rates and keep customers coming back.
Toyota’s $37 billion cash pile and credit ratings that outrank General Motors Co. and Ford Motor Co. enable its Toyota Financial Services unit to offer more loans and take on riskier borrowers. The operation, with $95 billion of assets, handles more of affiliated dealers’ direct loans and leases in the U.S. than any other automaker’s captive lender, or wholly owned finance arm. Toyota also uses intense data systems to keep buyers from straying to GM or Ford.