🧠At a Glance:
Toyota’s car sales may run on engines, but its profits? Pure finance.
And now, Toyota Motor Credit Corporation (TMCC) — the silent lender behind those “0% APR” dreams — has filed its FY2025 10-K. Here’s what we found:
- đź”» Net Income is down
- 📉 Delinquencies are up
- đź’¸ Loan book is ballooning
- 🏦 Borrowing costs are rising
Basically, TMCC is America’s biggest car dealership dressed up as a bank — and 2025 might be the year the gears start grinding.
🏢 About Toyota Motor Credit Corporation (TMCC)
- Subsidiary of Toyota Financial Services, operating in the U.S.
- Provides:
- Vehicle loans and leases to retail customers
- Dealer financing for Toyota and Lexus
- Securitization of auto receivables (because debt = magic 🪄)
- Based in Plano, Texas (yeehaw meets yen)
đź’Ľ Who Runs the Money Engine?
| Key Executives | Role |
|---|---|
| Mark Templin | CEO of Toyota Financial Services Americas |
| Scott Cooke | CFO |
| Christopher Ballinger (earlier) | Strategic Finance |
These aren’t your average car dealership managers. These are quant-laced finance pros running a
multi-billion dollar auto-finance empire.
đź’° FY2025 Financial Highlights
| Metric | FY2024 | FY2025 | % Change |
|---|---|---|---|
| Net Revenues | $5.82B | $5.61B | đź”» -3.6% |
| Net Income | $1.62B | $1.35B | đź”» -16.6% |
| Total Assets | $148B | $153.7B | 🔼 +3.9% |
| Loan Portfolio | ~$116B | ~$120B | 🔼 +3.4% |
| Delinquency Rate (60+ days) | 0.33% | 0.52% | ⚠️ +57% |
Yes, the profits are down, but the real shocker? Delinquencies are up 57% YoY.
That’s not a red flag. That’s a Toyota-sized airbag warning light.
📉 Why Did Profits Shrink?
- 🧾 Higher Cost of Funds: TMCC relies on short- and medium-term borrowing. With the Fed refusing to cut rates, their funding cost jumped.
- 🏚️ More Delinquencies: Inflation-hit Americans are struggling to pay for their over-financed SUVs. Who knew a $56,000 Camry wasn’t affordable?
- đź“Š Residual Value Woes: Used car prices have cooled, hurting lease returns and resale profits.
- ⚖️ Provisioning for Credit Losses: They’re
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