Annual Report 2009 - Toyota Financial Services

Toyota Financial Services Czech s.r.o.Products and ServicesAt present business activities of Toyota Financial Services Czech s.r.o. are performed on three basic product levels.The first one is the provision of financial services to end customers who have the intention to acquire (finance) Toyota and Lexuscars or Toyota and BT forklift trucks. This area of services is termed “retail”.The second part of TFSCZ product portfolio, usually called “wholesale”, is intended for support to Toyota’s authorized dealernetwork.Above both these basic product portfolio levels, which primarily serve to acquire assets, there is a third level - insurance.Insurance currently consist of property insurance relating to cars (and handling equipment).RetailThe financial service portfolio, which was substantially modified particularly in the last two years in relation to the amendmentsof the Income Tax Act and of the Value Added Tax Act, is at present able to satisfy a wide range of customer needs andexpectations. It includes both lease and loan products and, as a new feature, also a complete range of insurance productsdesigned for customers who do not finance their vehicles through Toyota Financial Services Czech s.r.o. too. The details of theindividual products are listed as follows:Toyota LeasingToyota Financial Services Czech s.r.o. product pillar, offeredsince the commencement of the Company’s operations in theCzech Republic, has been based on a finance lease with fullamortization, which means a finance lease with subsequentpurchase of the leased asset. Either businessmen or nonbusinessmenmay be the lessees. The specific conditions ofthe lease contract are based on a combination of standardparameters as follows:❍ an extra instalment accounting for 10% – 60% of thevehicle cost,❍ term of the contract is 36, 42, 48, 60 or 72 months for nonbusinessmen,60 or 72 months for businessmen,❍ fixed motor vehicle liability insurance (a minimum limitof CZK 50 million/CZK 50 million) throughout the wholelease term is part of regular instalments,❍ motor hull casco insurance, with a deductible of 5%(a minimum of CZK 5,000) or 10% (a minimum ofCZK 10,000), is fixed throughout the whole lease term andis part of regular instalments,❍ it is possible to take out an insurance policy for any Toyotaor Lexus brand model, for both new and used cars,❍ the contract is terminated by settling the repurchase pricein the notional amount of CZK 1,190 inclusive of VAT.Toyota KreditOur product, offered since 2002 and based on the creditfinancing principle, is intended for customers who want toown the vehicle immediately but do not want or may notuse their own financial means for its purchase. Toyota Kreditis suitable not only for businessmen or non-businessmen,but also for contributory organizations of self-governingterritories, cities (including the Capital City of Prague),municipalities and regions. The contract structure is veryflexible:10