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I. Ford Motor Credit and Securitization
Ford Motor Credit is the captive finance company of Ford Motor Inc. Its primary business is to supply Ford Motor affiliated dealers with capital which they in turn use to finance inventories of unsold vehicles and make loans and extend leases to their retail and corporate customers. Ford Motor Credit purchases the loans dealers make to their retail customers at the negotiated purchase price of the vehicle net of any trade in value and down payment received by the customer. These loans then compose Ford Motor Credit's retail loan portfolio. Ford Motor Credit extends revolving credits to their dealers. This is known as dealer floorplan financing and composes the wholesale segment of Ford Motor Credit's receivable portfolio. In addition Ford Motor Credit through its PRIMUS division offers wholesale financing to dealers of vehicles sold under the Jaguar, Land Rover, Aston Martin and Mazda brand vehicles and purchases loans extended by these dealers. Ford Motor Credit also offers credit through subsidiaries that specialize in dealing used cars and have a clientele that is considered high risk or "non-prime" credit. Ford Motor Credit also offers financial services to vehicle leasing companies and fleet purchasers. Financial services include underwriting auto insurance
Ford Credit has used securitization since 1988 to refinance portions of its wholesale and retail receivable portfolio. In addition to its term securitization programs through which it refinances dealer floorplan loans, retail installment loans and leases, Ford Credit sponsors a single seller asset backed commercial paper …