topic Re: Captive Lender Financing in Auto Loans

Captive Lender Financing

grillandwinemaster — Wed, 08 Jun 2016 01:19:19 GMT

Quick question for my Fico friends.

Do captive lenders finance the purchase of competing

brand vehicles?

For example, can I purchase a used Chevrolet from a

Nissan dealer and finance with NMAC? Does anyone have any experience or heard of someone doing this?

I thank you in advance for your replies.

Re: Captive Lender Financing

Anonymous — Wed, 08 Jun 2016 17:48:00 GMT

For used inventory, yes.

Captive lenders are captive to the dealer and can finance anything that dealer can sell.

Of course, incentives like 0% financing or cash back or any of that kind of thing only applies to new cars, but for a straight loan on a used car purchased from the dealer, the captive lenders will consider it just like any other lender would.

Many dealers work with more than one lender anyway - that is, a Chevy dealer may use Ally (their captive, used to be called GMAC) and Chase and WFDS and others concurrently; most also have a small army of credit unions and other lenders on speed dial as well. When a dealer finance office runs your application, it is common for them to shop a dozen lenders at once, not just their branded captive.

Re: Captive Lender Financing

grillandwinemaster — Wed, 08 Jun 2016 21:47:08 GMT

Fantastic! Thank you for your thorough reply! :-)