captive finance company

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Explanation of "Captive Finance Company"

Definition:
A captive finance company is a financial organization that is owned by a manufacturer. Its main purpose is to help the manufacturer’s dealers (the people who sell their products) by providing them with money to buy the products or to help customers make loans to buy those products.

Usage Instructions:

• You can use "captive finance company" when discussing business, finance, or specific brands that offer financing to help sell their goods.
• The term is often used in the context of car dealerships, electronics manufacturers, and other industries where financing is important for sales.

Example:

• "Toyota has its own captive finance company that helps dealers finance their inventory and offers loans to customers wanting to buy a new car."

Advanced Usage:

• In discussions about financial services, you might say, “The captive finance company plays a crucial role in the automotive sector by providing tailored financing solutions that enhance customer accessibility.”

Word Variants:

• There are no direct variants of "captive finance company," but you might encounter related terms such as:
  • Captive lender: A lender that is part of a larger corporate structure, similar to a captive finance company.
  • Finance subsidiary: A company that is a subsidiary of a larger corporation and provides financing.

Different Meanings:

• The term "captive" can also refer to someone or something that is held against their will. However, in this context, it specifically relates to finance and business operations.

Synonyms:

• Captive lender
• In-house financing company
• Manufacturer finance company

Idioms and Phrasal Verbs:

While there aren't specific idioms or phrasal verbs directly related to "captive finance company," you might come across phrases like: - "In the driver's seat" - meaning to be in control or in a position of power (which could relate to a company controlling its financing). - "Put your money where your mouth is" - meaning to back up your words with actions, which can relate to financing discussions.

Summary:

A captive finance company is a helpful tool for manufacturers, allowing them to support their sales through financing options.

Academic

Noun

1. a finance company owned by a manufacturer to finance dealers' inventories or to make loans to consumers buying the company's products