Jump to content




Welcome to CreditBoards!


Sign In 

Create Account
Welcome to CreditBoards! Like most online communities, you must register to post in our community, but don't worry - this is a simple process requiring minimal information for you to sign up. Be a part of CreditBoards by signing in or creating an account.
  • Start new topics and reply to others
  • Subscribe to topics to get email updates
  • Get your own profile page and make new friends
  • Send personal messages to other members.
 
Guest Message by DevFuse

Read These Items!

  • If you're getting an Authentication mismatch error: Clear your cache. Log out of CB. Delete your cookie. Close your browser. Open your browser and log back in.

Photo

Captive Finance


  • This topic is locked This topic is locked
No replies to this topic

#1 MarvBear

MarvBear

    Velvet Hammer

  • Admin
  • 47,790 posts

Posted 11 September 2005 - 12:35 PM

Post intended to explain the word Captive as referenced in the automobile industry.

Captive finance sources are those normally owned and/or associated with the parent manufacturing company. Of all the financing sources available to the consumer, Captives, from a dealerís standpoint, are usually the most flexible, negotiable, and dependable source for providing the end consumer financial arrangements for their vehicle of choice.

As the economy swings and rebounds, banks tend to react with their buying patterns as a direct result of economic trends, one notices from time to time a tightening of credit criteria. As both banks and credit unions re-evaluate their automotive loan portfolios they will from time to time either tighten or relax their credit granting criteria.

The most levelheaded of all automotive financial sources is, in my opinion, always the Captive finance source. Many times in reaction to a particular manufacturerís market share, the parent company (manufacturer), will issue instructions to the Captive source to relax credit guidelines for a particular model, which neither a bank nor a credit union will do.

Below are some examples of Manufacturers and their associated Captive Source.


Posted Image CHRYSLER FINANCIAL

Posted Image FORD MOTOR CREDIT CORPORATION (FMCC)

Posted Image
GENERAL MOTORS ACCEPTANCE CORPORATION (GMAC)

Posted Image MAZDA AMERICAN CREDIT

Posted Image NISSAN MOTOR ACCEPTANCE (NMAC)

The posting of the above logos and the outbound links does not indicate an endorsement from creditboards by myself or creditboards admin. For informational purposes only.






0 user(s) are browsing this forum

0 members, 0 guests, 0 anonymous users



© Copyright 2003 - 2013 Creditboards.com. All rights reserved. No portion of this site may be reproduced without explicit permission from the owners. The content of creditboards.com is subject solely to the personal whim of its admins. We reserve the right, at our sole discretion, to remove any and all posts or comments, at any time, for any reason which takes our entirely capricious fancy, or for no particular reason whatsoever, without restriction. Comments or questions regarding the site may be addressed to admin@creditboards.com.