Captive finance company

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Captive finance company

A company, usually a subsidiary that is wholly owned, whose main function is financing consumer purchases from the parent company.

Captive Finance Company

A subsidiary financial institution whose primary or sole operation is the provision of credit for customers of the parent company. For example, a captive finance company owned by a dental corporation may make loans for the expensive dental services. Captive finance companies have historically been prominent in the automotive industry, easing the purchase of cars from whichever company owns them. Captive finance companies are typically wholly owned subsidiaries.
References in periodicals archive ?
captive finance companies in 2012, although some reversion in credit metrics will also occur, according to a new report.
OPENLANE offers its comprehensive remarketing solutions to auto manufacturers, captive finance companies, lease and daily rental companies, financial institutions and wholesale auto auctions throughout the United States and Canada.
Wolters Kluwer Financial Services is now offering captive finance companies, lenders and auto dealerships universal closed-end motor vehicle lease agreements for all U.
At the same time, our recent additions also include one of the largest captive finance companies, GMAC Financial Services.
Founded in 1998, Phoenix-based CCG Catalyst (Catalyst Consulting Group) provides strategic guidance for banks, credit unions, mortgage lenders, captive finance companies and other organizations within the financial industry.