Toyota Financial Services has doubled the
amount of money lent to its dealer network in mortgages on retail
premises, part of a 28% rise in its debtors’ book, from 2010 to
2012.
Speaking to Motor Finance, Doug
Gillies, managing director of Toyota Financial Services, said the
combination of reduced risk and stricter lending criteria for banks
since 2008 presented the finance market with an opportunity to fund
the motor industry.
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As the appetite of banks to lend has reduced,
Gillies has seen Toyota Financial Services provide further
wholesale lending to its dealer network, including used vehicles
and property.
Gillies’ comments follow recent analysis by
asset finance software provider Linedata of the increasing
potential for captive finance houses to increase
the volume and value of revenue streams held with their respective
retail network.
Location, location, location
As well as funding used and new stock, Toyota
Financial Services has been funding property, plant and equipment.
The company’s UK debtors’ book has enlarged from £1.25bn to £1.6bn
since 2010; including £370m wholesale funding, up from £290m; and
£70m in mortgage lending to its dealer network, up from £35m.
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By GlobalData“We have got quite a significant property
portfolio now which has grown over the last two to three years,
lending to Toyota and Lexus dealers for real estate purposes,”
explained Gillies.
“Overall, banks’ appetite to lend and for risk
has reduced, if you overlay that with their appetite for certain
marketplace segments there are certain segments, certain markets,
where they’re looking to reduce their exposure.
“That’s good because we’ve got a very strong,
profitable dealer network. As they come to expand, as they update
their premises, as they move to bigger premises, they have a
funding requirement.”
A full interview with Doug Gillies of Toyota Financial
Services will be published in
July’s issue of
Motor Finance
magazine.
richard.brown@vrlfinancialnews.com
