Summary of Toyota Motor Credit Corporation (TMCC)

Business Overview

Toyota Motor Credit Corporation (TMCC) is a wholly-owned subsidiary of Toyota Financial Services International Corporation (TFSIC), which is in turn a subsidiary of Toyota Financial Services Corporation (TFSC), a Japanese company wholly owned by Toyota Motor Corporation (TMC). Incorporated in California in 1982, TMCC began operations in 1983.

Core Activities

• Primary Focus: Providing automotive financing and voluntary vehicle/payment protection products in the U.S. and Puerto Rico.
• Brands Served: Toyota, Lexus, Mazda (through Mazda Financial Services, MFS), and Bass Pro Shops.
• Customer Base: Customers of authorized Toyota, Lexus, Mazda, and private label dealers in the U.S. and Puerto Rico.

Business Segments

1. Finance Operations:

• Products:
  • Retail installment contracts
  • Operating leases (as lease contracts)
  • Dealer financing (wholesale financing, working capital loans, real estate financing)
• Portfolio:
  • Retail and lease contracts collectively called the "consumer portfolio."
  • Dealer financing portfolio called the "dealer portfolio."
• Funding: Obtains funding through global capital markets, investments, and operating activities.
• Experience Centers: Located in Chandler, Arizona; Plano, Texas; Alpharetta, Georgia, supporting dealer and customer service, collections, and leasing operations.
• Transition in 2025: Shifted origination of new contracts under Mazda Financial Services to Toyota Financial Savings Bank (TFSB), an unconsolidated affiliate.

2. Voluntary Protection Operations:

• Products:
  • Vehicle service contracts
  • Guaranteed auto protection (coverage for deficiency balances)
  • Prepaid maintenance
  • Tire and wheel protection
  • Key replacement
  • Used vehicle limited warranties
• Provision: Managed through Toyota Motor Insurance Services (TMIS).
• Markets: Sold via dealerships, with coverage backed by insurance subsidiaries where required by law.
• Reinsurance: 95-99% of risk ceded to third-party reinsurers.

Number of Employees & Customers (2025)

• Employees: Approximately 3,800 employees.
• Outstanding Shares: 91,500 shares, all held by Toyota Financial Services International Corporation.
• Customer Accounts: The number of contracts issued and in force suggests hundreds of thousands of customer relationships, though specific total customer counts are not provided.

Revenue & Income (Fiscal Year Ended March 31, 2025)

• Total Net Income: $1.712 billion
  • Finance Operations: $1.382 billion
  • Voluntary Protection Operations: $330 million
• Financing Revenues (2025):
  • Total: $13.232 billion
  • Retail: $5.909 billion
  • Operating leases (net of depreciation): $6.274 billion
  • Dealer: $1.049 billion
• Key Financial Highlights:
  • Net financing revenues (after depreciation and expenses): $3.273 billion
  • Total assets: Approximately $131.8 billion (as of March 31, 2025)
  • Debt: $127.7 billion (as of March 31, 2025)
  • Shareholder’s Equity: $17.2 billion

Additional Details

• Funding and Capital: Uses a diversified mix of bonds, notes, commercial paper, and securitizations. Maintains multiple credit facilities and credit support agreements with its parent companies.
• Market Environment: Continues to operate under various regulatory and economic conditions, with specific exposure to interest rate, credit, residual value, and market risks.
• Reputation & Relations: Maintains relationships with Toyota, Lexus, Mazda dealerships, and third-party financial institutions to support its operations.

Note: Specific figures relate to fiscal year ending March 31, 2025, and provide a detailed view of the company's operations, revenues, and workforce based solely on the provided data.