ORIX Auto to Launch “Imanori ONE,” a New Lump-Sum Payment Personal Car Leasing Service
Oct 27, 2016
TOKYO, Japan - October 27, 2016 - ORIX Auto Corporation ("ORIX Auto"), a subsidiary of ORIX Corporation, announced that starting from October 27 it will begin offering Imanori ONE, a personal car leasing service in which the leasing fee is paid upfront in a lump sum. This hybrid product combines the advantages of a cash purchase with those of a car lease contract. ORIX Auto is the first in the industry to offer car leasing with a lump-sum payment.
Imanori ONE car leases can reduce customers' interest costs by allowing customers to pay the full lease amount in a lump sum at the time of the contract, just like with a cash purchase. Because the lease fee is calculated after subtracting the residual value from the price of the car, the customer benefits from the smaller initial payment than otherwise required for an ordinary cash purchase. Expenses for the vehicle are also leveled, since Imanori ONE includes free coupons for vehicle inspections and oil changes during the contract period and ORIX Auto handles procedures such as the payment of taxes. The contract period is three or five years. ORIX Auto is launching the product with three car models and plans to gradually expand the lineup.
Ongoing ultra-low interest rate environment in Japan has made it increasingly difficult to manage one's wealth through deposits and savings. In light of this situation, ORIX Auto believes that Imanori ONE will offer advantages to customers who need a car but want to reduce extra spending by combining the benefits of a cash purchase with car leasing.
As sales of new cars slump, consumer values are shifting from owning to leasing. This has helped the car lease market to continue to grow, with the number of leased vehicles marking record highs three years in a row. Meanwhile, in the automotive market, rapid advancement in self-driving technology has prompted several automakers in Japan planning to launch self-driving cars that are capable of changing lanes and overtaking other vehicles on the expressway in 2020. Given this market environment, personal car leases such as Imanori ONE are seen as products that can also meet the needs of customers who want to drive a new car but intend to replace it in a few years.
ORIX Auto's personal car leasing business has developed and offered a wide variety of services to the market. These include "Imanori-kun," which allows customers to exchange or return a new car after two years, as well as "Imanori Seven" and "Imanori Nine," which provides customers a buyout option at the end of the contract period while keeping monthly payments low. As awareness of these products expands along with continuous efforts to better meet diversifying needs, the number of cars leased to individuals has increased around 130% year on year for three years straight.
Going forward, ORIX Auto will continue to expand its lineup of services to meet customers' diverse needs while further enhancing the quality of each service.
Corporate Planning Department
ORIX Corporation (TSE: 8591; NYSE: IX) is an opportunistic, diversified, innovation-driven global powerhouse with a proven track record of profitability. Established in 1964, ORIX at present operates a diverse portfolio of businesses in the operations, financial services, and investment spaces. ORIX's highly complementary business activities span industries including: energy, private equity, infrastructure, automotive, ship and aircraft, real estate and retail financial services. ORIX has also spread its business globally by establishing locations in a total of 37 countries and regions across the world. Through its business activities, ORIX has long been committed to corporate citizenship and environmental sustainability. For more details, please visit our website: http://www.orix.co.jp/grp/en/
Caution Concerning Forward Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under "Risk Factors" in the Company's annual report on Form 20-F filed with the United States Securities and Exchange Commission and under "4. Risk Factors" of the "Summary of Consolidated Financial Results" of the "Consolidated Financial Results April 1, 2015 - March 31, 2016."
- View PDF of this release