J.D. Power and Associates Reports: Dealers Overall Level of Satisfaction With Finance Providers Hits Four-Year Low
31 July 1997
J.D. Power and Associates Reports: Dealers Overall Level of Satisfaction With Finance Providers Hits Four-Year Low
AGOURA HILLS, Calif., July 31 -- For the second year in a
row, dealer satisfaction with financial providers has declined, according to
the J.D. Power and Associates 1997 Dealer Finance Study(SM). The study
reveals that while 69 percent of dealers claim to be "Very" or "Somewhat"
satisfied, this is a drop of 2 percentage points compared to 1996 -- and a
four year industry low.
In addition, the study shows that high volume dealers -- dealers who sell
or lease more than 700 cars a year, who account for 34 percent of all dealers
-- were less satisfied than lower volume dealers.
"Because high volume dealers account for roughly 75 percent of all vehicle
financing and leasing, there is substantial opportunity for financing
providers to gain share through better meeting these large dealers needs,"
commented David McKay, senior manager of auto finance research at J.D. Power
and Associates. "Providers with a broad geographic reach, substantial
resources, and a strong service orientation are the most likely candidates to
be successful at serving these large dealers," said Mr. McKay.
While overall industry performance is down, there are several providers
who excel this year. Four providers will receive awards based on their
performance in the three financing areas:
* Highest ranked in dealer retail credit satisfaction: First Security Bank
* Highest ranked in dealer retail leasing satisfaction: BMW Financial
Services, and
* Highest ranked in dealer floor planning satisfaction: Ford Credit and
Toyota Motor Credit Company.
The study also shows a link between dealer satisfaction with finance
providers and the perceived value of the service provided by these financial
institutions. Providers who have the highest perceived value scores, also
achieve the highest satisfaction rankings.
Finally the J.D. Power and Associates 1997 Dealer Finance Study(SM)
explores the relationship between satisfaction, value, and provider usage.
Findings show that when a provider delivers more value than competitors,
dealers are more likely to be satisfied with the provider, and thus, intend to
increase the usage of that provider.
"In this highly competitive market providers who don't deliver value and
ignore dealer's satisfaction, will lose business," concluded Mr. McKay.
The J.D. Power and Associates 1997 Dealer Finance Study(SM) is an annual
study, based on a mail survey conducted in April of 1997. The study includes
responses from more than 3,000 dealer principals'.
J.D. Power and Associates is an international firm best known for its
marketing information services in key business sectors including market
research, forecasting, and customer satisfaction. The firm's quality and
satisfaction measurements are based on actual customer responses from over a
million consumers annually. With its headquarters in Agoura Hills,
California, the firm also has U.S. offices in Torrance, California; Michigan;
and Connecticut. Its international locations include Japan, Korea, England,
Canada and Brazil.
J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com. Email: info@jdpower.com.
No advertising or other promotional use can be made of the information in
this release or J.D. Power and Associates survey results without the express
prior written consent of J.D. Power and Associates.
SOURCE J.D. Power and Associates
