FAW Toyota uses auto financing to boost sales

Shanghai, June 27 (Gasgoo.com) With the domestic vehicle purchasing power and auto sales volume declining, FAW Toyota, the joint venture between China’s First Auto Works and Toyota Motor, plans to boost auto sales by introducing vehicle-related financing abroad jointly with Toyota Motor Finance (China) Co, reported Shanghai Securities News.

The joint venture, in collaboration with Toyota Motor Finance (China) Co., has launched a project of low down-payment loan plus the vehicle buy-back project which targets its new VIOS and Corolla brands from June 1 to December 31, 2008.

Following Corolla’s success in China, FAW-Toyota aims to sell over 40,000 new VIOS for the total annual sales target of 400,000 units, said Mao Liwu, general manager of FAW Toyota Motor Sales Co.

A new VIOS priced 95,000 yuan ($13,830) could be bought by paying an upfront fee of 20%, which translates to 19,000 yuan. The one-year loan allows the consumers to pay 2,411 yuan per month in the first 11 months, and for the twelfth month, consumers could choose to retain the car via paying off the remaining loan or transfer it to the dealers by paying the difference, a sales executive of Toyota Motor Finance said.