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Captive Finance Services

Capabilities and services for captive finance companies

The way people move is undergoing a dramatic transformation. Powered by converging social and technological trends, the extended automotive industry is being shaped into a new mobility ecosystem. With the rise of subscriptions, car-sharing, and electric and autonomous vehicles, captive finance is shifting from a purely asset-based to a more service-based model. Fintechs and changing customer expectations are placing added pressure on captive finance business models to adapt to a new reality.

Challenges facing the captive finance industry

The auto landscape creates both tremendous opportunities and challenges. We know lenders face a high cost of servicing loans and leases, a slow and complex customer experience for lease end of term, and a slow and costly origination process.

To respond successfully, captive finance companies need to improve the efficiency and flexibility of their traditional business to keep costs low while improving the customer experience and preparing for future markets based on customers’ changing demands. This requires prioritization of resources and building and enhancing capabilities in the following areas:

  • Increasing customer-centricity
  • Improving operational excellence
  • Strengthening residual value management
  • Meeting higher regulatory expectations
  • Developing flexible, usage-based, and connected products
  • Expanding service offerings (e.g., fleet management, payments, insurance, and other mobility services)
  • Strengthening capabilities to leverage service offerings (e.g., data monetization)

Solutions to help you bridge the gap between today and tomorrow

As Yogi Berra has famously been said to say, “When you come to a fork in the road, take it.” For captive finance companies, the future has at least two perspectives that are equally weighted with considerations. With the future of mobility and future of captive finance, the industry sees an opportunity for significant changes where preparation and adaptation will be necessary to capture value.

With an accelerated evolution in the captive finance.industry (where high costs to serve and customer needs are rapidly changing), improvements to today’s core business functions will allow for necessary investments to be future-ready.

Why Deloitte for your captive finance services?

While the future of mobility and its implications for captive finance are evolving daily, Deloitte is helping original equipment manufacturers (OEMs) and captive finance companies improve the customer experience, build closer direct relationships with their customers, and be more efficient and flexible.

As one of the largest global practices and a leader in serving both the automotive and financial services industries, Deloitte can offer your captive finance organization our core Captive Finance team, with significant captive experience, plus the supplementary subject-matter knowledge to address specific needs and circumstances throughout the world.

Our team knows the captive finance industry:
The core of our project team will come from Deloitte’s Captive Finance practice. Deloitte’s tech and regulatory subject-matter advisers add additional experience.

Insights on pivotal captive finance issues

As a convener and shaper of the emerging mobility ecosystem, Deloitte publishes thought leadership that can help captive finance lenders stay informed about indicators (internal and external to the traditional automotive lending industry) affecting the pace and extent of the changes ahead.

Across industries and geographies, we cover the captive finance needs for organizations of all shapes and sizes. Learn more about what our leaders have to say here.

Get in touch

Karen P. Bowman

Karen P. Bowman

US Captive Finance Leader

Karen leads the US Captive Finance practice, which draws cross-functional professionals from Deloitte’s financial services and auto industry practices to serve our captive finance clients. Throughout ... More

Jeff Paul

Jeff Paul

Managing Director | Deloitte Services LP

Jeff is the leader of the Automotive Captive Finance sector, and in this role is responsible for Deloitte’s diverse functional delivery of products and services in the captive space. He brings more th... More

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