Insight: Joint approach helps Toyota capitalise on growing market

Finance and insurance has become an increasingly important profit centre for franchised motor retailers.

Recent months have seen dealers’ point of sale finance sales enjoy an increase in market share, overtaking the proportion of motor finance obtained from high street lenders.

This has allowed motor retailers an even greater opportunity to up sell additional appropriate insurance products.

It is an area in which MAPFRE ABRAXAS has been working with Toyota and its retailers since the turn of the decade.

Brian Munday, Toyota Financial Services general manager
marketing and customer relations, explained that as administrator for the Toyota GAP (guaranteed asset protection) insurance product, MAPFRE ABRAXAS has helped Toyota Centres to increase sales performance by 20% each year over the past three years.

Mike Swanborough, chief executive of Aioi Motor & General Insurance Company of Europe Ltd and Toyota Insurance Management – Toyota family companies that now underwrite the product and help manage Toyota insurance programmes – said the GAP insurance now offered is more tailored and appropriate to the brand’s needs.

Features include the benefits payable being greater for Toyota and Lexus vehicles, and the policy covering Toyota and Lexus fitted accessories.

Considerable emphasis has been put on ensuring customers with both Toyota Motor Insurance (also underwritten by Aioi) and Toyota GAP cover are not left out of pocket following a claim, something that can be a problem when the products are purchased from separate providers.