COSTA MESA, Calif. -

According to data released back in June by the Pew Research Center, 81% of Americans now own smartphones. That’s up from just 35% Pew analysts discovered during their first survey of smartphone ownership conducted in 2011.

Trends like that are having a significant impact on auto financing, as the recent findings from the J.D. Power 2019 U.S. Consumer Financing Satisfaction Study showed.

More than ever before, J.D. Power acknowledged consumers are researching auto financing options online before they enter a dealership, changing the game for manufacturers, finance companies and dealers that must now fine-tune their digital offerings to meet growing customer expectations.

According to J.D. Power’s latest study, the number of consumers who research financing options online prior to visiting a dealership is up significantly this year, and overall satisfaction with the consumer finance experience is significantly higher when customers have a good online experience.

“Auto finance customers are more educated than ever and, as a result, they have a much higher expectation for a seamless digital experience that enables them to effortlessly search for vehicle features and local inventory as well as financing options and terms,” said Jim Houston, senior director of automotive finance intelligence at J.D. Power.

“The benchmark for a good digital experience is no longer other auto finance companies; rather, it’s consumer-facing sites like Amazon and Netflix that recognize what users are looking for and deliver the right information within one or two clicks,” Houston continued in news release.

Additional key findings of the 2019 study include:

• More consumers do online research before visiting a dealership: J.D. Power reported more than half (52%) of consumers research auto financing options prior to visiting a dealership, an increase of 5 percentage points from 2018. Overall satisfaction with the auto financing process is 23 points higher (on a 1,000-point scale) when research for auto finance options is conducted online in advance.

• Digital research changes customer journey: J.D. Power discovered consumers who digitally research auto finance options are not only more satisfied with the lending experience, but they are also more likely to receive a pre-approval; shop for a vehicle with the lender already chosen; select a lender based on reputation; and complete a digital application.

• Paper versus digital:  While the number of auto finance customers who select electronic/digital billing statements is up 6% this year, J.D. Power learned 41% still indicate they receive a traditional paper statement in the mail. More than two-thirds (68%) of those who receive a paper statement indicate they pay electronically, and 11% indicate they would switch to a digital statement if they were asked. The study revealed that it is important for customers to be given billing and payment options at the onset of the financing relationship to maximize their customer experience.

• Bar is raised for website usability: J.D. Power pointed out overall satisfaction with auto finance companies climbed 138 points when customers report that the online bill pay function is “very easy to use.” Likewise, very easy reading/reviewing of billing statements and online bill pay scheduling each resulted in a 127-point increase in overall satisfaction, underscoring the importance customers place on lender website functionality.

J.D. Power also highlighted study rankings.

The study highlighted Lexus Financial Services, Lincoln Automotive Financial Services and Mercedes-Benz Financial Services ranked highest in a tie among luxury brands, each with a score of 867.

Ford Credit ranked highest among mass market brands with a score of 873. Capital One Auto Finance (860) came in second and GM Financial (854) took third.

The J.D. Power U.S. Consumer Financing Satisfaction Study measures overall customer satisfaction in five factors:

— Billing and payment process
— Mobile app experience
— Onboarding process
— Origination process
— Website experience

The study was fielded in July and August and is based on responses from 14,850 customers who financed a new or used vehicle through a lease or retail installment contract within the past four years.

For more information about the J.D. Power U.S. Consumer Financing Satisfaction Study, visit this website.