Mazda extends captive finance agreement with Toyota to 2030

Mazda North America has agreed to an early renewal of the private-label captive finance agreement it launched in 2020 with Toyota Financial Services, extending it for a second five-year term to the end of 2030, the two automakers said.

Mazda Financial Services initially launched in 2020 to replace a previous captive partnership with JPMorgan Chase. By last fall, the private-label lender was involved in more than 70 percent of Mazda's business, Mazda executives said.

"Mazda Financial Services has been one of the biggest blessings to this dealer body," David Hodges, chairman of the Mazda National Dealer Advisory Council, told Automotive News following the make meeting this month.

In addition to consumer vehicle financing and leasing, Mazda Financial Services also provides wholesale lending services to dealers. And Toyota Motor Insurance Services offers Mazda customers vehicle and payment protection products under the name Mazda Protection Products. The lender has written 1.6 million finance and voluntary protection contracts since it was established four years ago.

Scott Cooke, the new CEO of Toyota Financial Services, told Automotive News last month that the captive lender's arrangement with Mazda North America had gone so well that he and other company executives are looking to potentially expand to other brands.

"We have what I believe are the strongest partnerships in the industry. There's a lot of room for growth just in our core portfolio," Cooke said. "We like that business, and we would like to grow it as opportunities come up with other partners that have a common culture, common ways of approaching business."

"If the right opportunity comes along, we'd absolutely like to expand that business."

Staff writer John Huetter contributed to this report.