Toyota Motor Credit (TMCC) is the US financing arm of Toyota Financial Services, which is a subsidiary of Toyota Motor Corporation, the world's largest carmaker. TMCC provides retail leasing, retail and wholesale sales financing, and other financial services to Toyota and Lexus dealers and their customers for the purchase of new and used cars and trucks. It offers similar services to Toyota industrial equipment dealers. TMCC, which underwrites and services the finance contracts, operates three regional customer service centers and some 30 dealer sales and service branches across the US and Puerto Rico.
Through subsidiary Toyota Motor Insurance Services, the company also underwrites and sells insurance products such as extended service coverage, total loss protection, and prepaid maintenance protection.
TMCC a retail loan portfolio worth approximately $45 billion. Around half of its lease assets are in its top five markets. California is the largest, accounting for about a fifth of its lease assets, followed by Texas, New York, and New Jersey. The company's credit losses, which spiked during the depths of the economic crisis in 2008, have since come back down to Earth and TMCC returned to profitability in fiscal 2010 in spite of lower loan volumes and revenues.
Natural disasters in Japan and Thailand led to a disruption in Toyota vehicle manufacturing in 2012. As a result, Toyota sales experienced a slight slump, which contributed to an 8% decline in TMCC's revenues for the year. Investment and other income also declined, and the company's profits for the year slipped 20% to $1.5 billion. The declines were slightly offset by cuts in operating and administrative expenses, which had risen in fiscal 2011. – less