Captive providers
A captive finance company is usually a wholly-owned subsidiary of a larger firm designed to specifically provide credit or financial solutions to customers of the parent company.
Captive finance providers are to be found mostly in the automotive industry where virtually every vehicle manufacturer has a firm dedicated to helping its customers purchase cars. They will not provide funding for purchase of products that are not produced or related to their parent firm's operations.
For example, German carmaker BMW has BMW Financial Services, the primary purpose for which is to provide finance deals exclusively to those looking to buy BMWs. American carmaker Ford has Ford Motor Credit Company, while Italian manufacturer Fiat has Fiat Financial Services.
Like all other companies operating in the UK financial services sector, these captive providers are regulated by City watchdog the Financial Services Authority, meaning they conform to rules governing lending in the country.
