A captive finance company is a business party that is owned by a corporation that manufactures products and sells them to the public. The captive finance company arranges loans to customers of the parent company for the products that it makes and/or sells.

In the world of auto loans and car finance deals, each of the big three American car companies has their own specific captive finance company for helping to get financing on the company's cars for sale to the public. The captive finance company for General Motors is General Motors Acceptance Corporation (GMAC). Chrysler Financial arranges financing for Chrysler customers, and the Ford Motor Company has Ford Motor Credit Company (FMCC).

Other companies such as Sears, GE and other home or consumer product makers have their own captive finance companies as well for helping those who need credit make purchases of larger items such as home appliances. For more information on captive finance companies, check out some of our helpful articles and advice.