SINGAPORE - Toyota Financial Services, the world's largest vehicle financier, has set up an office in Singapore to tap into the Republic's small but lucrative market.

Toyota Financial Services Singapore (TFSS), which was incorporated on Jan 2 this year, launches its services on Thursday (July 9).

It has a current staff of 15 working at Toyota agent Borneo Motors' showroom in Leng Kee Road.

Asked what benefits the move would have for its Toyota and Lexus buyers here, Ms Jasmmine Wong, chief executive of Inchcape Greater China and Singapore, said TFSS is "simply an additional financing option".

Ms Wong said Borneo Motors will also be able to leverage on TFSS' global expertise.

"We'll be able to provide a range of flexible and convenient financial and mobility solutions to our customers, such as instant and hassle-free credit approval, and an attractive 'zero down payment' leasing scheme, amongst others," she added.

TFSS will be rolling out loans with an introductory rate of 1.88 per cent - among the lowest offered here for cars.

It will also kick off a "buy now, pay later" programme, where instalment payments start only in the 13th month.

TFSS is not the first manufacturer-linked financier to set up shop here.

Others such as Daimler, BMW and Volkswagen have done so before, although VW's outfit has since left.

TFSS chief executive Vinod Cherumadathil said: "As the automotive market undergoes a transformation with evolving customer behaviours and requirements, we believe our global heritage and expertise can be translated into more flexible and customisable financial products."

He would not say, however, if TFSS intends to tap into non-automotive segments of the loans market, nor would he comment on the market share it is aiming for.