Category: Auto Finance|Consumer LendingUnited States

JD Power Identifies Key Behaviors for Auto Lender Sales Reps that Win Dealers’ Business in Tight Market

2022-08-09

jillian.breska

TROY, Mich.: 11 Aug. 2022 — Sales representatives for auto lenders are facing a challenging marketplace as a combination of inflation, rising interest rates and persistently low supply of new vehicles have made it harder than ever to win new business. According to the JD Power 2022 U.S. Dealer Financing Satisfaction Study,^SM released today, five key sales rep behaviors can mean the difference between winning over dealers with above-and-beyond service or disappearing into the background.

“Auto lender sales reps that exceed dealer expectations in areas such as responsiveness and expertise with lending programs generate dealer satisfaction scores that are as much as 190 points higher—on a 1,000-point scale—than those who just meet or miss dealer expectations,” said Patrick Roosenberg, director of automotive finance intelligence at JD Power. “Despite this huge competitive advantage, only 44% of sales reps manage to exceed dealer expectations.”

Additionally, banks significantly improve year over year and outperform captive lenders in overall dealer satisfaction. “Banks have made great strides by focusing on improving dealer satisfaction which leads to greater dealer intent to send more business,” Roosenberg said.

Study Rankings

Captive—Mass Market Segment
Subaru Motors Finance ranks highest in overall dealer satisfaction with a score of 934, followed by Honda Financial Services (899) and Ford Credit (888).

Non-Captive National—Prime
TD Auto Finance ranks highest in overall dealer satisfaction for a third consecutive year, with a score of 961. Ally Financial (955) ranks second and Chase Automotive Finance (905) ranks third.

Non-Captive Regional—Prime
Citizens ranks highest in overall dealer satisfaction for a third consecutive year, with a score of 950. Huntington National Bank (919) ranks second and M&T Bank (899) ranks third.

Sub-Prime
Ally Financial ranks highest in overall dealer satisfaction for a second consecutive year, with a score of 945. Chase Automotive Finance (895) ranks second and Capital One Auto Finance (872) ranks third.

Lease
Ally Financial ranks highest in overall dealer satisfaction with a score of 942, followed by Subaru Motors Finance (940) and Ford Credit (906).

The 2022 U.S. Dealer Financing Satisfaction Study is based on responses from 3,578 auto dealer financial professionals. The study, which was fielded in April-May 2022, measures auto dealer satisfaction in six segments of lenders: captive luxury–prime;¹ captive mass market–prime; non-captive national–prime; non-captive regional–prime; non-captive sub-prime; and lease.

For more information about the U.S. Dealer Financing Satisfaction Study, visit https://www.jdpower.com/business/resource/us-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 modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 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. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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

¹The Captive Luxury—Prime segment is not award eligible in 2022.

 

Battle for Auto Loan Customers Shifts from Dealership to Online Pre-Approval, JD Power Finds

2021-11-15

jillian.breska

In an automotive market beset by supply shortages and record high prices, more vehicle shoppers than ever have begun shopping for vehicle financing before ever setting foot in a dealership. According to the JD Power 2021 U.S. Consumer Financing Satisfaction Study,^SM released today, auto financing pre-approval has become the top of the funnel for auto loan customer acquisition and brand loyalty, putting the focus on digital channels as the starting point for the consumer financing journey.

“Auto financing customer behavior has fundamentally shifted from an exercise that largely took place in a dealership finance department to one that takes place online upwards of 30 days prior to a vehicle purchase,” said Patrick Roosenberg, director of automotive finance intelligence at JD Power. “Nearly half—45%—of all customers now do research prior to financing a vehicle and their experiences with lenders  can have a tremendous influence on that process. That really puts the onus on lenders to deliver a superior customer experience to existing customers and to position their websites and consumer marketing initiatives to maximize conversions.”

Following are key findings of the 2021 study:

• Pre-approval becomes lynchpin to auto financing journey: Nearly half (45%) of all auto loan customers do some type of research on financing options prior to purchasing a new vehicle. The proportion jumps to 62% among members of Generation Z.[1] Ultimately, 60% of customers who shop online for auto financing options end up applying for a pre-approval.
• Auto financing research begins a month before a purchase: Among most auto loan customers who research financing options prior to a purchase, the research process begins more than 30 days prior to purchasing or leasing a vehicle. Effective use of both applied for and unsolicited pre-approvals can lead to a greater customer recapture rate and conquest opportunities.
• The memory remains: Current and past experiences with auto lenders matter now more than ever as many customers begin the shopping process because of marketing information or incentives they’ve received from their existing lender or auto manufacturer.
• Personalization is next frontier: Customers have different preferences for how they want to manage their accounts and be contacted by lenders. As this interaction continues to shift to digital channels, lenders will need to tailor their outreach to the needs of individual customers.

Study Rankings

BMW Financial Services ranks highest in customer satisfaction among luxury brands, with a score of 874. Chase Automotive Finance (871) ranks second and Ally Financial (865) ranks third.

Ford Credit ranks highest among mass market brands, with a score of 867. Capital One Auto Finance (863) ranks second and Honda Financial Services (860) ranks third.

The newly redesigned U.S. Consumer Financing Satisfaction Study measures overall customer satisfaction in five factors (listed alphabetically): account management; application/approval process; billing and payment process; customer orientation process; and customer service experience. The study was fielded in July-August 2021 and is based on responses from 10,462 customers who financed a new or used vehicle through a loan or lease within the past three years.

For more information about the U.S. Consumer Financing Satisfaction Study, visit https://www.jdpower.com/business/resource/us-consumer-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 modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 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. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); and Gen Y (1977-1994); and Gen Z (1995-2004). Xennials (1978-1981) and Millennials (1982-1994) are subsets of Gen Y.

 

Strong Dealer Relationships Become Critical for Auto Lenders in Supply-Constrained Marketplace, JD Power Finds

2021-09-23

jillian.breska

With inventory constraints continuing to keep monthly retail sales of new vehicles down 30% from pre-pandemic levels, auto lenders are facing an incredibly competitive marketplace in which it is harder than ever to stand apart from the pack. According to the JD Power 2021 U.S. Dealer Financing Satisfaction Study,^SM released today, those lenders who find ways to form close relationships with dealers and deliver consistently high service levels are best positioned to capture  additional opportunities.

“Auto dealers who maintain transactional relationships with lenders, spreading their business across multiple institutions without establishing go-to relationships have significantly lower levels of satisfaction with their lending partners,” said Patrick Roosenberg, director of automotive finance intelligence at JD Power. “In this market, where rates are low and new vehicle sales volumes remain significantly suppressed, captive and non-captive lenders who want to stay competitive need to set themselves apart by forging close relationships with dealers through their sales reps, retail credit staff and funding.”

Study Rankings

Captive—Mass Market Segment
Volkswagen Credit ranks highest in overall dealer satisfaction with a score of 946 (on a 1,000-point scale), followed by Subaru Motors Finance (916) and Toyota Financial Services (907).

National Banking
TD Auto Finance ranks highest in overall dealer satisfaction with a score of 953. Ally Financial (940) ranks second.

Regional Banking
Citizens ranks highest in overall dealer satisfaction with a score of 928, followed by Huntington National Bank (918) and Fifth Third Bank (887).

Sub-Prime
Ally Financial ranks highest in overall dealer satisfaction with a score of 932. Capital One Auto Finance (854) ranks second.

Lease
Audi Financial Services ranks highest in overall dealer satisfaction with a score of 952, followed by Volkswagen Credit (949) and Lincoln Automotive Financial Services (934).

The 2021 U.S. Dealer Financing Satisfaction Study is based on responses from 2,992 auto dealer financial professionals. The study, which was fielded in May-July 2021, measures auto dealer satisfaction in six segments of lenders: captive luxury–prime;¹ captive mass market–prime; non-captive national–prime; non-captive regional–prime; non-captive sub-prime; and lease.

For more information about the U.S. Dealer Financing Satisfaction Study, visit https://www.jdpower.com/business/resource/us-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 modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 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. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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

¹The captive luxury—prime segment did not meet requirements to be award eligible.

 

JD Power Acquires Leading Automotive Finance & Insurance Software Provider Superior Integrated Solutions/Darwin Automotive

2021-07-06

jillian.breska

JD Power, a global leader in data analytics and consumer intelligence, today announced it has acquired Superior Integrated Solutions, Inc./Darwin Automotive, a leading provider of automotive finance & insurance (F&I) software used by automotive dealerships. The acquisition enhances the value JD Power can provide with its data, analytics, and software components to auto dealers, original equipment manufacturers (OEMs), third-parties and consumers as the industry continues to employ new technologies to improve the consumer experience.

“We are focused on maximizing the value of our extensive data and analytics assets by connecting the key components of the auto industry supply chain from OEMs to dealers to consumers and empowering each link in that chain with critical intelligence, streamlined workflows and user-friendly software,” said Dave Habiger, president and CEO of JD Power. “By partnering with Phillip Battista and his amazing team at Superior Integrated Solutions/Darwin Automotive, we will be well positioned to help auto dealers maximize profits while delivering a world-class customer experience.”

Superior Integrated Solutions has been a leader in F&I software and digital retailing with more than 7,700 dealers using its technology. Its Darwin Automotive Platform is an industry-leading F&I menu software application, supporting both showroom and digital sales with highly personalized, customer-focused tools to select vehicle financing and protection options. The technology leverages data and predictive analytics to customize customer offers based on a range of criteria including specific vehicle information, overall deal structure and the situation for each individual customer, creating the optimal F&I package. Widely adopted by the largest dealer groups in the United States, the Darwin Automotive Platform is used in one-third of all new-vehicle transactions today.

“The auto industry is undergoing a historic transformation that will put powerful customer analytics and highly customized, multi-channel solutions at the center of the vehicle purchase experience,” said Phillip Battista, CEO, Superior Integrated Solutions/Darwin Automotive, who will become president of dealership technologies at JD Power. “JD Power is an iconic brand that drives consumer confidence worldwide and the combination of the JD Power brand and our technology will be a game changer for the industry affecting everyone from online consumers to dealers to OEMs to insurers. We are thrilled to be working with JD Power and look forward to even bigger and better innovations to come.”

Superior Integrated Solutions/Darwin Automotive senior leadership and its 88 employees will join JD Power and will form the base of a new dealership technologies division.

Portico Capital Securities served as exclusive financial advisor to Superior Integrated Solutions/Darwin Automotive with respect to this transaction.

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 modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 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. The JD Power auto shopping tool can be found at JDPower.com.

About Superior Integrated Solutions/Darwin Automotive
Superior Integrated Solutions specializes in the programming and integration of dealer management systems with third-party systems at auto dealerships. Servicing over 14 DMS systems, the company is the leader in real-time data integration services. Offering in-house custom development services including F&I, accounting, service, and parts, Superior currently represents approximately 70% of the top 20 dealer groups in the nation. Superior also owns Darwin Automotive, an industry-leading F&I menu and Digital Retailing software application, supporting both showroom and digital sales with highly personalized, customer-focused tools to select vehicle financing and protection options.

Media Relations Contacts
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 

 

Timing, Channel and Coordination between Lenders, OEMs and Dealers Key to Retaining Lessees, JD Power Finds

2021-03-31

jillian.breska

TROY, Mich.: 1 April 2021 — As new-vehicle lease opportunities compete against aggressive financing incentives for new-vehicle buyers, executing effective lease retention and conquest strategies will be critical for lenders, manufacturers and dealers in 2021. According to the JD Power 2021 U.S. End of Lease Satisfaction Study,^SM released today, the key to capturing returning lessees is coordinated communication through the right channels at critical moments in the auto shopping journey—sometimes starting as early as 12 months prior to lease end.

“There is a formula for optimizing new-vehicle lease recapture and conquest strategies,” said Patrick Roosenberg, director of automotive finance intelligence at JD Power. “With such a high percentage of returning customers leasing again, the key to retaining those customers along with first-time lease customers is delivering the right proactive messaging at the right time via the right channel. The more lenders, OEMs and dealers can coordinate their communications to connect with customers at the right moments in their leasing journey, the more likely they will be to develop strong, long-term relationships.”

Following are key findings of the 2021 study:

• Returning lessees likely to lease again: Nearly three-fourths (72%) of returning mass market lessees and 68% of premium market lessees lease another vehicle when their existing lease ends. Among first-time lessees, those numbers drop to 50% among mass market customers and 57% among premium market customers, illustrating the importance of strategies focused on recapturing existing lessees.
• Customers considering next vehicle a year in advance of lease end: Both returning and first-time lessees start considering a new vehicle as early as 12 months prior to the end of their existing contract and can be heavily influenced at this stage by proactive communication from lenders, dealers and manufacturers.
• Coordinated communication maximizes retention: Lease customers respond in a variety of ways to different types of communications from lenders, OEMs and dealers at different phases of their customer journey. Coordination between these three key players can have a significantly positive effect on customer satisfaction and retention.
• Inspections and inspectors influence customer satisfaction: Inspections play a pivotal role in end of lease satisfaction. Addressing customer pain points or areas of opportunity in the lease return process can lead to a better experience and increase lease retention. Lenders need to coordinate efforts with lease inspection companies within their SLAs to ensure the best customer experience possible and execute on multiple KPIs surrounding the process.   

Study Ranking

Honda Financial Services ranks highest in end of lease satisfaction in the mass market category, achieving a score of 848 (on a 1,000-point scale). Hyundai Motor Finance (843) and Toyota Financial Services (843) rank second in a tie.

The 2021 U.S. End of Lease Satisfaction Study identifies lease-end practices and timely marketing opportunities that optimize lease retention for the same brand and at the same dealer. The study is based on responses from 2,761 mass market and premium vehicle lease customers who are within six months of lease end. It was fielded from November 2020 through January 2021.

For more information about the U.S. End of Lease Satisfaction Study, visit https://www.jdpower.com/business/financial-services/us-end-lease-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 modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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

 

Auto Dealers Give High Marks to Commercial Lenders, but Opportunities Exist to Expand Business Relationships, JD Power Finds

2021-02-23

jillian.breska

Auto dealers rely on commercial lenders to keep their lots full, but when those lenders get the dealer satisfaction formula right, they stand to attract even more business from dealers. According to the JD Power 2021 U.S. Automotive Commercial Lending Satisfaction Study,^SM released today, the difference between good and great dealer-lender relationships comes down to four key steps that can set the stage for expanded business relationships.

The inaugural study evaluates auto dealer satisfaction with floor planning and other commercial lending services, and identifies the key service attributes that drive increased customer satisfaction and loan portfolio growth.

“The most common reason auto dealers select their lending partners for loans—such as real estate and construction—and lines of credit is because of a strong relationship a dealer already has with a lender on floorplan,” said Jim Houston, managing director of consumer lending and auto finance intelligence at JD Power. “The study shows the tried-and-true path to building that relationship is by consistently delivering on a core set of performance metrics rooted in making it easier for dealers to sell vehicles.“

Following are some key findings of the 2021 study:

• Dealer satisfaction with commercial lenders builds from a strong foundation: Overall dealer satisfaction with inventory financing providers is very high (9.69 on a 10-point scale), but there are some clear steps lenders can take to improve even further.
• Four-step path to a perfect relationship: The keys drivers of superior dealer/lender relationships are all rooted in the principle of making dealers’ lives easier. Key performance metrics associated with the biggest jumps in customer satisfaction are: always being reachable when needed; making it easy to submit required documents; providing seamless credit line increases; and providing a clear, achievable path to meeting reward program requirements. When dealers experience all four of these best practices, overall satisfaction jumps to a near-perfect 9.96.
• Room to improve: Currently, despite overall strong scores, just 8% of auto dealers say they experience all four lender performance metrics.
• Good floor plan relationship drives expanded business for lenders: Nearly three-fourths (70%) of auto dealers select a credit facilities lending partner based on an existing inventory finance lending relationship.

The U.S. Automotive Commercial Lending Satisfaction Study is based on 1,727 evaluations by auto dealer finance professionals across both the inventory finance and lending segments. It was fielded in October-November 2020.

For more information about the U.S. Automotive Commercial Lending Satisfaction Study, visit https://www.jdpower.com/business/financial-services/us-automotive-commercial-lending-study.

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 modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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

 

Frontline Lender Relationships—Not Rates—Key to Auto Dealer Satisfaction, JD Power Finds

2019-08-13

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COSTA MESA, Calif.: 14 Aug. 2019 — As auto dealers confront a rapidly changing consumer landscape in which many customers now apply for credit online before visiting a dealership, the experienced and empowered credit and sales personnel at captive and non-captive lenders are becoming critical elements in the success of an automotive finance operation. According to the JD Power 2019 U.S. Dealer Financing Satisfaction Study,^SM the ability to answer dealer questions correctly the first time, facilitate electronic transactions and resolve contracts quickly is key to helping dealers successfully navigate the changing marketplace.

“Dealers are able to put together more attractive, seamless transactions for their customers when they are able to work in lock-step with lenders they trust to deliver fast, accurate and competitive products,” said Jim Houston, Senior Director, Automotive Finance Intelligence at JD Power. “That relationship becomes more important as vehicle sales slow and more buyers may seek to secure financing outside of the dealership. Credit analysts and sales personnel perform some of the most important functions for dealers looking to match customers purchase with the right financial transaction. When these teams are available, knowledgeable and empowered, they improve dealer satisfaction and enhance the lender’s value proposition.”

The 2019 U.S. Dealer Financing Satisfaction Study is based on 16,870 retail credit and 2,117 floor plan provider evaluations from dealer personnel, a 17% increase in response rate from the 2018 study. The study was fielded in April-May 2019, measuring auto dealer satisfaction in three segments of lenders: non-captive, captive mass market and floor planning. The non-captive analysis evaluates the dealer/lender relationship across three factors: relationship; provider offerings; and application/approval process. In the captive segment, four factors are evaluated: relationship; provider offerings; application/approval process; and lease return. Three factors are measured in the floor planning segment: relationship; portfolio management; and provider credit line.

Study Rankings

Captive—Mass Market Segment
Volkswagen Credit ranks highest in overall dealer satisfaction with a score of 961, followed by Subaru Motors Finance (940) and Mazda Capital Services (921).

Non-Captive Segment
Citizens One Auto Finance ranks highest in overall dealer satisfaction with a score of 935, followed by TD Auto Finance (927) and Ally Financial (899).

Floor Plan
Audi Financial Services and Volkswagen Credit rank highest in a tie with scores of 993. TD Auto Finance(983) ranks third.

For more information about the JD Power U.S. Dealer Financing Satisfaction Study, visit https://www.jdpower.com/business/resource/us-dealer-financing-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Dealer-Lender Relationships Play Critical Role as Vehicle Sales in Canada Keep Sliding, JD Power Finds

2019-05-20

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TORONTO: 21 May 2019 – Against a backdrop of declining auto sales in Canada, dealers are expecting their lenders to go shoulder to shoulder with them in weathering the tightening market, and are looking for lenders to foster a dealer-lender relationship focusing on ease of doing business, according to the JD Power 2019 Canada Dealer Financing Satisfaction Study,^SM released today. The top two reasons cited by dealers for sending business to a lender are people/relationships and easy to work with.

“The constricting market presents both risk and opportunity for lenders,” said Patrick Roosenberg, Director of Automotive Finance at JD Power. “As dealers face headwinds, the pressure on lenders mounts not only to be price competitive but also to provide a high level of service. Every dealer-lender communication touch point, from the credit analysts to the sales representative, must be a value-add. Lenders who are engaged with their dealer partners are poised to protect market share and even grow it over the long-term.” 

The study also finds that dealers will seek the path of least resistance. Dealers who gave high marks (9 or 10 on a scale of 1-10) on the reasonableness of the lender’s stipulation process, are twice as likely to increase their business with the lender compared with those who rated the process 8 or lower. 

Lender Rankings

Ford Credit ranks highest in the captive lender segment with a score of 915. Toyota Financial Services (897) ranks second and Honda Financial Services (891) ranks third.

Among non-captive lenders, TD Auto Finance ranks highest for the second consecutive year, with a score of 906. Bank of Montreal (890) ranks second and Scotiabank (888) ranks third.

Overall satisfaction in the captive segment improves to 883 (on a 1,000-point scale), up from 875 in 2018. In the non-captive segment, overall satisfaction rises to 878, a 16-point improvement over 2018.

The 2019 Canada Dealer Financing Satisfaction Study, now in its 21^st year, captures 5,572 finance provider evaluations across the two segments from new-vehicle dealerships in Canada. The study was fielded in February 2019.

For more information about the Canada Dealer Financing Satisfaction Study, visit

https://canada.jdpower.com/business/resource/canada-dealer-financing-satisfaction-study

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Gal Wilder, Cohn & Wolfe; 647-259-3261; [email protected]
Sandy Caetano, Cohn & Wolfe; 647-259-3288: [email protected]
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]

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

 

Mobile Apps Become New Battleground for Auto Lender Customer Satisfaction, JD Power Finds

2018-11-09

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COSTA MESA, Calif.: 12 Nov. 2018 — A well-designed mobile app has become one of the most critical drivers of customer satisfaction with auto lenders. According to JD Power 2018 U.S. Consumer Financing Satisfaction Study,^SM growing numbers of auto loan customers are interacting with their lenders via a mobile app, and when they do overall satisfaction surges.

The annual study was significantly redesigned based on industry input to capture the full auto finance customer journey throughout the shopping, origination and servicing processes. The study measures overall customer satisfaction in five factors (listed alphabetically): billing and payment process; mobile app experience; onboarding process; origination process; and website experience. Satisfaction is calculated on a 1,000-point scale.

“As the auto shopper journey becomes increasingly digital, it’s critical for auto lenders to get the mobile app formula just right,” said Jim Houston, Senior Director of Automotive Finance at JD Power. “While mobile app utilization is still highest among younger generations, older customers who interact with auto lenders via mobile app experience even higher overall satisfaction than their younger counterparts. Mobile is no longer a generational or niche offering; it is now the window into the auto lending experience.”

Following are key findings of the 2018 study:

• Mobile app is biggest driver of satisfaction when customers experience all five aspects of the auto loan process: Overall, 23% of auto loan customers indicate completing a loan application digitally (website or mobile app). Among that group of customers, overall satisfaction scores are 55 points higher than among those who complete an application via traditional paper or verbal means (884 vs. 829, respectively). When loan customers use a combination of website and mobile app for all facets of the loan application, onboarding and payment process, mobile app accounts for 32% of the overall satisfaction score, making it the single largest factor in the customer satisfaction equation.

• Auto shoppers look online for financing options: Nearly half (47%) of auto loan customers shopped online for vehicle financing prior to visiting a dealership. Within that group, 42% selected an indirect financing option offered by their dealer and 12% selected direct financing through a financial institution. Overall satisfaction scores are highest among customers who secured direct financing outside the dealership (867) and among those who shopped ahead of time but selected the dealer-offered option (857). Satisfaction scores are lowest among passive shoppers who did not research a loan online prior to visiting the dealership (833).

• High levels of satisfaction among auto loan mobile app users: Overall satisfaction is high among customers currently using auto-finance apps (874); however, customer use is generally limited to monthly transactions. There is an opportunity to extend auto finance mobile app capabilities to features desired by customers, thus providing greater value.

Study Rankings

Lincoln Automotive Financial Services and Mercedes-Benz Financial Services rank highest in a tie among luxury brands, with a score of 877. GM Financial (867) ranks third.

World Omni Financial Corp. ranks highest among mass market brands, with a score of 870. Volkswagen Credit (863) ranks second and Ford Credit (862) ranks third.

The 2018 U.S. Consumer Financing Satisfaction Study is based on responses from nearly 14,000 customers who financed a new- or used-car through a loan or lease within the past four years and was fielded in July-August 2018.

For more information about the 2018 U.S. Consumer Financing Satisfaction Study, visit https://www.jdpower.com/business/resource/us-consumer-financing-satisfaction-study.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Lender Availability, Knowledge and Responsiveness Affects Dealer Satisfaction, JD Power Finds

2018-08-10

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COSTA MESA, Calif.: 13 Aug. 2018 — Dealers are leaning heavily on the credit staff and sales reps, as they covet immediate funding and problem resolution within the dealer finance industry, according to the JD Power 2018 U.S. Dealer Financing Satisfaction Study,^SM released today. Across all lender segments (luxury captive, mass market captive and non-captive), lender relationship is the heaviest-weighted driver of satisfaction.

“If lenders can ensure credit staff is readily available and knowledgeable, they will see a boost in dealer satisfaction,”said Jim Houston, Senior Director of the Automotive Finance Practice at JD Power. “Satisfaction declines by 163 points, on a 1,000-point scale, when dealers are not able to reach the credit staff. Additionally, if lenders can communicate the best contact for dealers to reach out to for non-traditional questions, the resolution time decreases, which will, in turn, increase dealer satisfaction.”

The 2018 U.S. Dealer Financing Satisfaction Study is based on responses from 4,476 automotive dealers. The study was fielded in April-May 2018. The study measures auto dealer satisfaction in four segments of lenders: non-captive, captive mass market, captive luxury market and floor planning. The non-captive analysis evaluates the dealer/lender relationship across three factors: relationship, provider offerings and application/approval process. In the captive mass market and luxury segments, four factors are evaluated: relationship, provider offerings, application/approval process and lease return. Three factors are measured in the floor planning segment: relationship, portfolio management and provider credit line.

Study Rankings

Captive—Luxury Segment
Mercedes-Benz Financial Services ranks highest in overall dealer satisfaction (976), followed by Audi Financial Services (944) and Infiniti Financial Services (942).

Captive—Mass Market Segment
Volkswagen Credit ranks highest in overall dealer satisfaction (956), followed by Subaru Motors Finance (928) and NMAC (901).

Non-Captive Segment
Citizens One Auto Finance ranks highest in overall dealer satisfaction (921), followed by TD Auto Finance (917) and Chase Automotive Finance (869).

Floor Plan
TD Auto Finance ranks highest with a score of (994), followed by Mercedes-Benz Financial Services (989) and Volkswagen Credit (984).

For more information about the JD Power U.S. Dealer Financing Satisfaction Study, visit http://www.jdpower.com/business/resource/us-dealer-financing-satisfaction-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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