Alec Hagey, the newly appointed CEO of Toyota Financial Services, is facing a daunting task as he takes the reins of the nation's largest captive finance company. In his first weeks in the role, Hagey has highlighted a pressing concern for the industry: affordability challenges. As consumers continue to grapple with rising interest rates and stagnant wages, maintaining access to affordable financing options has become a top priority for automakers. With the growing demand for electric vehicles (EVs) also comes the challenge of determining their residual values, a crucial factor in determining their long-term profitability. Meanwhile, Hagey has also identified opportunities for growth in the private label market, where Toyota can leverage its brand strength to offer exclusive financing options to customers.
New Toyota Financial Services CEO Alec Hagey discusses affordability challenges, EV residual values and private label growth opportunities in his first weeks leading the nation’s largest captive ...
