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Category: Auto Finance|Consumer Lending|Financial ServicesCanada

  • 2025 Canada Dealer Financing Satisfaction Study

    Lenders in Canada Must Exceed Dealer Expectations to Drive Business Growth, JD Power Finds

    2025-04-30

    jillian.breska

    TORONTO: 6 May 2025 – As Canada’s automotive sector enters unknown territory amidst an evolving trade market, potentially increasing cost of borrowing and higher new-vehicle pricing, lenders face significant challenges and need to exceed dealers’ expectations to grow their business according to the JD Power 2025 Canada Dealer Financing Satisfaction Study,SM released today.

    “In the current economic climate, just meeting dealers’ expectations is no longer the catalyst for growth,” said Patrick Roosenberg, senior director of automotive finance intelligence at JD Power. “How a lender’s sales rep engages with their dealers in terms of responsiveness, ability to solve issues and communicate consistently has a significant effect on satisfaction, which eventually manifests itself in generating new business opportunities.”      

    According to the study, top-performing lenders with high satisfaction scores are more likely to get additional business from dealers (61% for top-ranking captive and 56% for top-ranking non-captive) during the next 12 months compared to those in the middle of the pack (50% and 42% captive and non-captive respectively). 

    Nearly two-thirds of dealers (63%) said they “definitely will” increase business in the next 12 months when sales rep facilitation of contract and problem resolutions exceeded expectations. That figure drops to 42% when expectations were only met. Sales rep’s responsiveness and effectiveness also play a role in dealer satisfaction. While most (62%) dealers prefer an on-site visit for a sales meeting, 71% favour phone communication for problem resolution and expecting the reps to respond within half an hour or less (77%). 

    Study Rankings

    Ford Credit ranks highest with a score of 812. Hyundai Motor Finance (793) ranks second followed by Honda Financial Services in third spot (775).

    In the non-captive prime segment, TD Auto Finance ranks highest, with a score of 830. Scotiabank ranks second (799).

    In the non-captive non-prime segment, TD Auto Finance ranks highest for an eighth consecutive year, with a score of 820.

    The Canada Dealer Financing Satisfaction Study, now in its 27th year, measures new-vehicle dealer satisfaction with their finance providers and sheds light on the key role that lenders’ sales representatives play in securing new business growth. This year’s study included 5,974 finance provider evaluations across three segments, all from new-vehicle dealerships in Canada. The study was fielded in February 2025.

    For more information about the Canada Dealer Financing Satisfaction Study, visit https://www.jdpower.com/business/auto-finance/canada-dealer-financing-satisfaction-study.

    About JD Power
    JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modelling capabilities to understand consumer behaviour, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 56 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business.

    Media Relations Contacts
    Gal Wilder, NATIONAL; 416-602-4092; [email protected] 
    eno Effler, JD Power; West Coast; 714-621-6224; [email protected] 

    About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info 

     

  • 2024 Canada Dealer Financing Satisfaction Study

    Relationships Key to Generating Greater Revenue Opportunities for Auto Lenders, JD Power Finds

    2024-05-02

    jillian.breska

    TORONTO: 7 May 2024 – With Canada’s new vehicle sales continuing to grow year over year, lenders who are looking to capture a bigger piece of the market should focus on building and cultivating relationships with dealers, according to the JD Power 2024 Canada Dealer Financing Satisfaction Study,SM released today.

    The study, which measures new-vehicle dealers’ satisfaction with their finance providers, finds that dealers who have relationship-based interactions with their lender are 54 points (on a 1,000-point scale) more satisfied than those whose interactions are strictly transactional. Also, relationship-based dealers are 36% more likely to send additional business to the lender in the next 12 months.

    “The numbers overwhelmingly show that lenders who build and maintain holistic interactions with dealers are more likely to generate additional business than on deals that only hinge on compensation,” said Patrick Roosenberg, senior director of automotive finance intelligence at JD Power. “A lender’s sales reps play a critical role in nurturing and managing those relationship-based engagements. Lenders should invest in and empower their sales reps to excel and ensure they are provided with the tools to be highly effective in cultivating those relationships. One example is to keep an effective rep-to-dealers ratio.”      

    With nearly one in five dealers categorized as transactional according to the study, lenders have ample organic growth opportunities to expand their business by converting those into relationship-based clients.

    Study Rankings

    Ford Credit and Kia Finance rank highest in a tie in the captive prime segment, each with a score of 812. Hyundai Motor Finance (784) ranks third.

    In the non-captive prime segment, TD Auto Finance ranks highest, with a score of 833. Scotiabank ranks second (788).

    In the non-captive non-prime segment, TD Auto Finance ranks highest for a seventh consecutive year, with a score of 826.

    The Canada Dealer Financing Satisfaction Study, now in its 26th year, captures 6,164 finance provider evaluations across three segments, all from new-vehicle dealerships in Canada. The study was fielded in February-March 2024.

    For more information about the Canada Dealer Financing Satisfaction Study, visit https://www.jdpower.com/business/auto-finance/canada-dealer-financing-satisfaction-study.

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modelling capabilities to understand consumer behaviour, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business.

    Media Relations Contacts
    Gal Wilder, NATIONAL; 416-602-4092; [email protected] 
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected] 

    About JD Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info