TOYOTA MOTOR CREDIT CORP

Toyota Motor Credit Corporation

Company and structure

• Incorporated in California (1982); operations began in 1983.
• Wholly owned by Toyota Financial Services International Corporation (TFSIC), which is a subsidiary of Toyota Financial Services Corporation (TFSC). TFSC is a subsidiary of Toyota Motor Corporation (TMC).
• Operates through consolidated subsidiaries and is marketed under Toyota Financial Services, Lexus Financial Services, and Bass Pro Shops Financial Services.

Primary business activities

Finance operations

• Acquires retail installment sale contracts and operating-lease contracts from dealers in the U.S. and Puerto Rico (the consumer portfolio).
• Provides dealer financing, including wholesale financing, working capital loans, revolving lines of credit, and real estate financing to dealers in the U.S. and Puerto Rico (the dealer portfolio).
• Financing revenues, net of depreciation, by product mix:
  • Retail: ~64% (2026), 65% (2025), 63% (2024)
  • Operating leases: ~25% (2026), 24% (2025), 26% (2024)
  • Dealer: ~11% (2024–2026)
• Underwriting uses a proprietary credit scoring system and auto-decisioning for automatic approvals/denials; credit analysts review applications that are not auto-decisioned.
• Secures retail contracts by filing title or UCC filings as appropriate; for leases, TMCC acquires the vehicle and holds rights to collect or repossess.
• Subvention programs and contractual residual value supports are provided by Toyota Motor Sales, U.S.A., Inc. (TMNA) and third-party distributors, and are reflected in yield adjustments over the contract life.
• Servicing is performed through TMCC’s Experience Centers; a centralized department manages certain third-party vendors for bankruptcy, post charge-off recovery, repossession, and disposition. Remarketing is handled through dealer platforms and auctions.

Voluntary protection operations

• Through Toyota Motor Insurance Services, Inc. (TMIS) and its insurance subsidiaries, underwrites and administers voluntary protection products sold by dealers and some products sold through TMNA affiliates.
• Products include prepaid maintenance, vehicle service contracts, guaranteed auto protection (GAP), certified pre-owned limited warranties, tire and wheel protection, key replacement protection, and excess wear and use contracts (excess wear and use contracts were no longer offered as of Q4 2026).
• Uses insurance coverage and reinsurance arrangements as needed; since October 1, 2025, excess liability insurance risk has been 100% ceded to third-party reinsurers.
• TMIS provides administrative services and coverage to TMNA and affiliates, including limited warranty coverage for TMNA’s certified pre-owned program.

Mazda Financial Services transition

• In fiscal 2025, origination and financing of new Mazda auto finance and lease contracts under the MFS Agreement were transitioned to Toyota Financial Savings Bank (TFSB), a Nevada thrift owned by TFSIC and an unconsolidated TMCC affiliate.
• TMCC retained existing private-label assets and liabilities and continues to service those contracts under the Mazda Financial Services brand.
• TMCC continues to offer voluntary protection products to Mazda Financial Services customers and has servicing agreements with TFSB to service transitioned contracts.

Customer base and market reach

• Provides financing and protection products to Toyota and Lexus dealers and dealer groups, private-label dealers or dealer groups, and other domestic and import franchise dealers and their customers in the United States and Puerto Rico.
• Field operations are organized into three regional Experience Centers: Chandler, Arizona (West); Plano, Texas (Central; also headquarters); and Alpharetta, Georgia (East).

Locations and facilities

• Headquarters: Plano, Texas.
• Regional Experience Centers: Chandler, AZ; Plano, TX; Alpharetta, GA.
• Sales and operations office in Puerto Rico.
• All premises are leased.

Capital and funding

• Funds assets primarily through global capital markets, supplemented by investing and operating cash flows.
• Uses securitization structures (for example, Toyota Lease Trust, a Delaware business trust) for lease assets and services lease contracts originated by the Titling Trust; these lease assets are included in investments in operating leases, net.
• Maintains intercompany arrangements with TFSC, TFSB, TFSC, and TMNA, including shared services and servicing agreements that support financing and servicing activities.

People

• Approximately 3,900 employees as of March 31, 2026.
• No collective bargaining agreements.
• Culture emphasizes Toyota philosophy and continuous improvement, with employee resource groups and broad employee benefits.

Regulatory and risk context

• Subject to federal and state consumer finance and insurance regulation, including oversight from the CFPB and various state licensing authorities, and compliance with statutes such as the Truth in Lending Act and Fair Credit Reporting Act. Also subject to state privacy, cybersecurity, and data protection laws.
• Principal exposures include credit risk, liquidity risk, interest-rate risk, market risk, cyber risk, model risk, operational risk, and regulatory risk.
• Business performance depends in part on TMNA’s vehicle sales, incentive and subvention programs, and broader auto market conditions; recalls or shifts in vehicle demand can affect volumes and earnings.
• Maintains risk management processes and Board-level governance for cybersecurity through a Cybersecurity Committee.

Summary of focus

TMCC delivers end-to-end auto finance and consumer protection services to Toyota and Lexus dealer networks in the U.S. and Puerto Rico. Its activities include underwriting, funding, servicing, repossession and remarketing, and administration of a broad set of voluntary protection products backed by TMIS and affiliated insurers. TMCC also manages private-label and third-party partnerships and participates in securitization programs to support asset funding. A recent development was the transfer of new Mazda-related originations to TFSB in fiscal 2025, while TMCC continues to service those contracts and provide related protections. Approximately 3,900 employees support these operations.