J.D. Power said finance companies need to focus on bringing their lease customers back to the brand in light of the current market. J.D. Power said lease options for customers are limited as auto leasing volume continues to fall.

In fact, analysts indicated leasing now accounts for just 17% of total new-vehicle sales.

According to the J.D. Power 2023 U.S. End of Lease Satisfaction Study released on Thursday, the key to attracting and retaining those customers is understanding when lessees make their decisions and how best to communicate with them at the right moment.

“In this market, lenders need to take actions that create and maintain brand loyalty,” J.D. Power director of automotive finance intelligence Patrick Roosenberg said in a news release. “Because there are fewer lease opportunities, the best course of action is for lenders to do everything in their power to maintain their current customers.

“In that effort, we compare the different end of lease journeys, between customers that are brand loyal and those that leave the brand, to identify and understand lender specific actions that affect loyalty,” Roosenberg continued. “According to our data, the optimal recapture point is long before a customer ever sets foot in a dealership. The greatest opportunity to retain lease customers is six to nine months before vehicle turn-in.

“By being proactive with their communication, knowing when it should begin and understanding the communication channels customers value, lenders maximize their chances to forge a brand loyalty with a customer that can pay dividends for years to come,” he went on to say.

Chart courtesy of J.D. Power.

So which finance companies already might be utilizing those strategies?

J.D. Power said Ford Credit ranked highest in end of lease satisfaction in the mass market segment for a second consecutive year, with a score of 873.

Toyota Financial Services came in second at 857, while Honda Financial Services and Hyundai Motor Finance tied for third at 855.

J.D. Power reiterated that the 2023 U.S. End of Lease Satisfaction Study identified 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 2,513 mass market lease customers who have ended an auto lease within the past nine months of the survey period. The study was fielded from November through January.

For more information about the U.S. End of Lease Satisfaction Study, visit this website.