What's A Captive Lender?

Captive lenders are the financing arm of an automaker that handles lending for a specific brand. For instance, Ford Credit, GM financial, Kia Motor Finance, and Toyota Financial Services are all examples of captive lenders.

In some cases, even with a poor credit score, it's possible to work with a captive lender if you're looking for a specific vehicle.

Benefits of Finance With a Captive Lender

What's A Captive Lender?If you're looking to finance a vehicle for a below-market interest rate, you're going to want to go through a captive – they're the only lenders that can offer you these low rates. Additionally, when you finance with a captive lender, you may find that the interest rates start at a lower percentage.

For example, if you're seeing a deal that's 0% APR for 36 months on a specific car, truck or SUV, you have to finance through the captive lender to get these deals, other lenders can't offer the same rates.

In lieu of low-APR deals, some manufacturers offer cash rebates, which can typically be used as money off your loan no matter who you finance through. However, cash rebates aren't usually stackable with low APR deals.

Captive lenders can help you finance a new vehicle at a franchised dealership and typically have more flexibility in the discounts they can offer. Third-party lenders may not have the ability to give you the same deals. Just like not all lenders work with the same borrowers, not all lenders have the ability to offer the same deals on all cars.

Is a Captive Lender Right For You?

A captive lender isn't always the right choice when it comes to getting a car loan, especially if you're a bad credit borrower. In many cases, captives can't work with borrowers whose credit is below a certain level, usually 620. Some lenders though, like Ford Credit, are lowering their threshold for credit limits to borrowers who take on certain long-term loans – 84-months in this case.

If you can't find a deal or qualify for a car loan through a captive lender, there are plenty of other options available to borrowers in many kinds of credit situations, and we want to help you find one.

The Car Connection has a nationwide network of special finance dealerships that are signed up with many kinds of auto lenders. If you need to find a dealership to finance your next car through, start here. Simply fill out our fast, free, no-obligation auto loan request and we'll get to work matching you with a dealer in your area.


Auto Insurance

Find insurance in your area.

Financing with The Car Connection

At The Car Connection, our goal is to remove the challenges of getting financed for a vehicle. Through technology, flexible financing options and exceptional customer service, we want to give you the power to control your car-buying experience.

  • All Credit Types
  • No Obligation
  • Easy and Secure
Get Started