Despite a tightening credit market here in the U.S., Toyota announced on Wednesday that it will be launching its own credit card this fall. The card will allow users to accumulate points, which can be used on Toyota parts and maintenance, as well as the down payment on a new Toyota vehicle.
This isn’t the Japanese automaker’s first foray into the credit card business, as it launched a Lexus -branded card in 2005. Since the launch of the Lexus credit card, Toyota has issued 50,000 cards and awarded 11 million points, according to Automotive News. However, only about 21,000 card holders have redeemed their points — totaling 4.5 million points — with the vast majority of card holders using the points to service their Lexus vehicles. Only about 5 percent of card holders have used points for the down payment on a new vehicle.
Toyota expects to issue 140,000 credit cards in the program’s first year, with more likely in the future.
“We came at this from a retention perspective,” Mike Wells, Toyota Financial Services vice president of marketing, product and branding, told Automotive News. “How can we (reward) a customer for what they are already doing?”
The Toyota credit card will be available beginning in October.
