Toyota launches new financing arm
Toyota Motor Group yesterday launched Toyota Financial Services (Ireland).
The company, which expects to write around €70m worth of business in its first year, is a joint venture between Toyota Financial Services, Toyota Motor Corporation's international finance arm, and Toyota Ireland.
In order to cater for the expected demand for its car finance products, the company is to create 25 new jobs at its Dublin headquarters.
Last year the Irish Independent revealed that the motor group was in the process of establishing its own bank in Ireland to provide car finance directly to customers. At the time a Toyota spokesperson declined to comment.
Toyota Financial Services currently has around €160bn in assets under management throughout the world, however this is the first time it has entered into such an agreement with a national distributor.
At yesterday's launch, Michael D'Arcy TD, Minister of State for Financial Services, described the announcement as "a significant vote of confidence in the Irish economy."
Personal contract plan rates with Toyota will start at 2.9pc, and average at 3.9pc, the company said.
In setting up a private bank in Ireland, Toyota joins a list of other car manufacturers that have already established private banks in Ireland, including Volkswagen.
Car makers have been stepping up their activity in offering consumers attractive financing deals in a low interest rate environment, and at a time when car sales across the country are declining.
Sales have been hit by weakened sterling, which has resulted in a UK car buying spree by Irish consumers.
Earlier this week it was revealed that banks owned by car companies loaned almost €1bn to Irish motorists last year. The 'big three' - BMW, Renault and Volkswagen banks - recorded increases of between 1.5pc and 7pc.