Captive Finance Company


Captive Finance Company
A subsidiary whose purpose is to provide financing to customers buying the parent company's product.

The captive finance company is usually wholly owned by the parent company. Although there are numerous examples of these, the best ones occur in the automotive industry. Each of the "big three" automakers has a captive finance company. General Motors has General Motors Acceptance Corporation (GMAC), Daimler Chrysler has Chrysler Financial, and the Ford Motor Company has Ford Motor Credit Company (FMCC).


Investment dictionary. . 2012.

Look at other dictionaries:

  • captive finance company — noun a finance company owned by a manufacturer to finance dealers inventories or to make loans to consumers buying the company s products • Hypernyms: ↑finance company …   Useful english dictionary

  • captive finance company — A finance company controlled by an industrial or commercial company …   Accounting dictionary

  • captive finance company — A finance company controlled by an industrial or commercial company …   Big dictionary of business and management

  • captive finance company — A leasing or finance company which is affiliated with an automobile manufacturer or distributor …   Dictionary of automotive terms

  • captive finance company — A company, usually a subsidiary that is wholly owned, whose main function is financing consumer purchases from the parent company. Bloomberg Financial Dictionary …   Financial and business terms

  • finance company — noun a financial institution (often affiliated with a holding company or manufacturer) that makes loans to individuals or businesses • Hypernyms: ↑nondepository financial institution • Hyponyms: ↑consumer finance company, ↑small loan company,… …   Useful english dictionary

  • finance company — See captive finance company …   Dictionary of automotive terms

  • Captive insurance — companies are insurance companies established with the specific objective of financing risks emanating from their parent group or groups but they sometimes also insure risks of the group s customers as well. Using a captive insurer is a risk… …   Wikipedia

  • Captive D'assurance — La notion de captive d’assurance est ici employée dans une acception très large. Elle regroupe quatre types de captives d assurance : Une captive d’assurance stricto sensu, ou captive d’assurance directe est une société filiale, créée par… …   Wikipédia en Français

  • Captive d'assurance — La notion de captive d’assurance est ici employée dans une acception très large. Elle regroupe quatre types de captives d assurance : Une captive d’assurance stricto sensu, ou captive d’assurance directe est une société filiale, créée par… …   Wikipédia en Français