WESTLAKE VILLAGE, Calif. — The J.D. Power 2013 U.S. Dealer
Financing Satisfaction Study showed dealer satisfaction increased in all
finance provider areas for the second consecutive year.

What extended the upward trend? J.D. Power indicated this week that appeal
for product offering contributed to increases in satisfaction.

Overall dealer satisfaction with prime retail credit lenders
came in at 890 on a 1,000-point scale, an increase of 5 points from last year.

Retail leasing satisfaction rose to 896, up 5 points from a
year ago.

Floor planning satisfaction increased the most among the
three award-eligible lending areas — a jump of 11 points from a year ago to 924.

J.D. Power highlighted that increasing industry adoption
rates of such process innovations as eContracting combined with improvements to
dealer support and a solid product offering contributed to satisfaction
increases. 

The study found 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," Buckingham continued.

The study examines dealer satisfaction with lenders in four
finance areas:

—Prime retail credit
—Subprime retail credit (which was included in the study but was not eligible
for an award)
—Retail leasing
—Floor planning

Satisfaction is measured across three factors in the prime
and subprime retail credit areas:

—Finance provider offering
—Application/approval process
—Sales representative relationship

Four factors are measured in the retail leasing area:

—Finance provider offering
—Application/approval process
—Sales representative relationship
—Vehicle return process

Three factors are measured in the floor planning area:

—Finance provider credit line offering
—Floor plan support
—Floor plan portfolio management

Although satisfaction in the auto financing industry is
improving, the study pointed out 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," Buckingham said. "A customer-focused staff is a
cornerstone for success."

Dealer Financing Satisfaction Rankings

—Prime Retail Credit: Alphera Financial Services ranked
highest among prime retail credit lenders with a score of 970. Followed in the
rankings were BMW Financial Services (965) and Mercedes-Benz Financial Services
(953).

—Retail Leasing: BMW Financial Services came in highest
among lenders in the retail leasing area for a second consecutive year with a
score of 958. Following in the rankings were Mercedes-Benz Financial Services
(954) and Ford Credit (929).

—Floor Planning: Mercedes-Benz Financial Services ranked
highest among floor planning lenders for a third consecutive year with a score
of 971. Following in the rankings were 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.

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