FORT WORTH, Texas — Toyota Financial Services is “closely” watching mobility trends in the auto finance space with an eye toward developing a plan to allow borrowers to work off past-due accounts by driving for rideshare companies, like Uber or Lyft, said Chris Ballinger, the captive’s chief financial officer and global chief officer of strategic innovation.
“I think all OEMs are looking at these kinds of things,” he told attendees at Auto Finance Innovation Wednesday, cautioning that more specific information would be a “securities law violation.”
However, TFS expects to announce “soon” its plans in the mobility space, likely with flexible leasing “either through partnerships or by trying to build that ourselves,” he added. Consumers’ ability to monetize their vehicles to create added income streams is a “huge” opportunity for the industry. This income can potentially qualify consumers for a loan because it becomes an alternative to a traditional credit score, he explained.
Trends in mobility also pose an opportunity for lenders to help customers who face financial hurdles. “Wouldn’t it be nice to say to that customer, ‘Hey, everybody has hard times, we have an alternative for you. We have a partnership with XYZ company in mobility services, sign up with them, and get your lease paid for,’” Ballinger said. “That’s the biggest gift we could give to our customers.”
