Overall Satisfaction with Dealer Financing Increases; Lenders' Strong Support Continues to Fuel Auto Industry's Sales Increases
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BMW Financial Services Ranks Highest in Retail Leasing and Mercedes-Benz Financial Services Ranks Highest in Floor Planning, both for a Second Consecutive Year; Alphera Financial Services Ranks Highest in Dealer Satisfaction in Prime Retail Credit
WESTLAKE VILLAGE, CA--July 30, 2013: Dealer satisfaction has increased in all finance provider areas for the second consecutive year, with product offering contributing to increases in satisfaction, according to the J.D. Power 2013 U.S. Dealer Financing Satisfaction StudySM released today.
The study examines dealer satisfaction with lenders in four finance areas: prime retail credit; sub-prime retail credit[1]; retail leasing; and floor planning. Satisfaction is measured across three factors in the prime and sub-prime retail credit areas: finance provider offering; application/approval process; and sales representative relationship. Four factors are measured in the retail leasing area: finance provider offering; application/approval process; sales representative relationship; and vehicle return process. Three factors are measured in the floor planning area: finance provider credit line offering; floor plan support; and floor plan portfolio management.
Overall dealer satisfaction with prime retail credit lenders is 890 on a 1,000-point scale, an increase of 5 points from 2012, and retail leasing satisfaction is 896, up 5 points from 2012. Floor planning satisfaction has increased the most among the three award-eligible lending areas—an increase of 11 points from 2012 to 924 in 2013.
Increasing industry adoption rates of such process innovations as eContracting combined with improvements to dealer support and a solid product offering have contributed to satisfaction increases. The study finds that 30 percent of lenders offer dealers such options with 39 percent of dealers that are using these options indicating they will give more business to their eContracting lender.
"In addition to more improved services, competition and new entrants into the market provide dealers with more choices and product innovations," said Michael Buckingham, senior director of the auto finance practice at J.D Power. "This combination also creates a highly competitive marketplace for dealers to select their finance provider and increase vehicle sales."
Although satisfaction in the auto financing industry is improving, the study finds the following three best practices separate the lenders with average satisfaction scores from those with high scores:
Sales representative excellence: To dealers, the sales representative is the most important touch point with a lender. Sales reps must have the knowledge and tools to teach and train dealers on the various finance product offerings. Organizational speed and efficiency: Building processes and an infrastructure that provide fast underwriting for all retail products, as well as fast funding of retail products and floor planning, is mission critical. Service excellence: Dealers support lenders that have personnel who are knowledgeable, friendly and customer focused.
"Indirect auto finance lending is a relationship business between dealer and lender," said Buckingham. "A customer-focused staff is a cornerstone for success."
Dealer Financing Satisfaction Rankings
Prime Retail Credit Alphera Financial Services ranks highest among prime retail credit lenders, with a score of 970. Following in the rankings are BMW Financial Services (965) and Mercedes-Benz Financial Services (953).
Retail Leasing BMW Financial Services ranks highest among lenders in the retail leasing area for a second consecutive year, with a score of 958. Following in the rankings are Mercedes-Benz Financial Services (954) and Ford Credit (929).
Floor Planning Mercedes-Benz Financial Services ranks highest among floor planning lenders for a third consecutive year, with a score of 971. Following in the rankings are BMW Financial Services (966) and Ford Credit (948).
The 2013 U.S. Dealer Financing Satisfaction Study is based on responses from 3,962 dealers who were surveyed between March and April 2013.
Dealer Satisfaction Index Ranking
Prime Retail Credit
(Based on a 1,000-point scale)
Alphera Financial Services
970
BMW Financial Services
965
Mercedes-Benz Financial Services
953
Ford Credit
935
Security Service Federal CU
917
Infiniti Financial Services
915
SunTrust Bank
905
Toyota Financial Services
900
BMO Harris
899
Ally Financial
897
PNC Bank
890
Industry Average
890
RBS Citizens
889
Bank of America
887
Capital One Auto Finance
887
Honda Financial Services
886
Huntington National Bank
882
TD Auto Finance
881
Fifth Third Bank
879
Citizens Auto Finance
876
Wells Fargo Dealer Services
875
BB&T
873
Nissan Motor Acceptance Corp.
872
Chase Auto Finance
870
Volkswagen Credit
870
US Bank
869
Bank of the West
867
Subaru Motors Finance
863
Hyundai Motor Finance
849
GM Financial
848
Kia Motors Finance
833
Credit Union Direct Lending
817
Santander Auto Finance
796
Included in the study but not ranked due to small sample size are AmeriCredit, Compass Bank; Mazda Capital Services; Mini Financial Services; M&T Bank; and Regions Bank.
Dealer Satisfaction Index Ranking
Retail Leasing
(Based on a 1,000-point scale)
BMW Financial Services
958
Mercedes-Benz Financial Services
954
Ford Credit
929
Infiniti Financial Services
904
Industry Average
896
Toyota Financial Services
894
Honda Financial Services
893
Ally Financial
886
Nissan Motor Acceptance Corp.
875
Hyundai Motor Finance
850
Volkswagen Credit
849
GM Financial
840
Kia Motors Finance
838
US Bank
806
Included in the study but not ranked due to small sample size are Mazda Capital Services; Mini Financial Services; Subaru Motors Finance; and Wells Fargo Dealer Services.
Dealer Satisfaction Index Ranking
Floor Planning
(Based on a 1,000-point scale)
Mercedes-Benz Financial Services
971
BMW Financial Services
966
Ford Credit
948
Toyota Financial Services
937
Hyundai Motor Finance
930
Bank of America
924
Industry Average
924
GM Financial
922
Kia Motors Finance
920
Nissan Motor Acceptance Corp.
916
Chase Auto Finance
914
Ally Financial
910
Wells Fargo Dealer Services
896
Volkswagen Credit
830
Included in the study but not ranked due to small sample size are M&T Bank; PNC Bank; SunTrust Bank; and US Bank.