One outcome of your staying with leasing is that you have lots of cars coming back from leases. Most other brands won't see those numbers increase until next year or the year after.
The number we have put out there is that because of all this, 24 percent of all the off-lease units being returned now in the industry are a Toyota or a Lexus. That's about 433,000 units for us, over an 18-month span.
Are those all actual returns to Toyota Financial Services, or are those scheduled terminations?
That's scheduled terminations. The Manheim Index [for used-car values] is not quite at historic highs, but it's very high. As a result, the actual return rate to us is still extremely low. Dealers, and in some cases customers, tend to buy those units as soon as they come back, and the dealers sell them.
Do the dealers keep most of those customers?
Lease loyalty is by far the biggest -- bigger than retail [loans] and bigger than cash.
It's 24 percent greater than cash and about 15 percent greater than retail. Our loyalty is high to begin with, it's roughly 62 percent overall.
Is lease loyalty just sort of a natural outcome, or do you work at it, too?
We have three call centers and one of their key focuses is customer loyalty. Our value story is that we create loyalty for the divisions [Toyota and Scion, and Lexus] and for the dealers.
We have about 100 associates in our call center in Cedar Rapids [Iowa] -- and in Phoenix there are some, too -- we've got them calling those lease customers well in advance of their scheduled terminations.
We ask them, "Would you like a dealer to call you?" We feed those leads to the dealers.