Auto retailers are looking for lenders to help build a dealer-lender relationship that is focused on ease of doing business, said J.D. Power in a news release.
The company just released its 2019 Canada Dealer Financing Satisfaction Study, which reveals that dealers are looking for the path with the least resistance when it comes to choosing a lender partner. J.D. Power also said the dealer-lender relationship may play a critical role as Canadian auto sales continue to dip.
“The constricting market presents both risk and opportunity for lenders,” said Patrick Roosenberg, Director of Automotive Finance at J.D. Power. “As dealers face headwinds, the pressure on lenders mounts not only to be price-competitive, but also to provide a high level of service.”
He said every dealer-lender communication touch point must be a value-add. “Lenders who are engaged with their dealer partners are poised to protect market share and even grow it over the long-term.”
For example, dealers that find the lender’s stipulation process to be very reasonable (giving it a rating of nine or 10 out of 10) are twice as likely to boost their business with that lender, versus those who rated the lender’s process at eight and lower.
Ford Credit ranks highest in the captive lender segment (915 out of 1,000), followed by Toyota Financial Services (897) and then Honda Financial Services (891). Below the top three is Kia Motors Finance (848); Nissan Canada Finance (838); GM Financial (772); and Hyundai Motor Finance (768). The Captive Average is 883.
In the non-captive lenders department, TD Auto Finance ranks highest for the second consecutive year (906), followed by the Bank of Montreal (890) and Scotiabank (888). Then there is RBC Royal Bank (866); Caisse Populaire Desjardins (864); CIBC (854); and National Bank of Canada (851).
These are followed by the General Bank of Canada (840); Scotia Dealer Advantage (835); ATB Financial (826); AutoCapital Canada (819); IA Auto Finance (817); and Carfinco (760). SCI Lease Corp is rated at 600 out of 1,000.
The non-captive average is 878.
Source: J.D. Power 2019 Canada Dealer Financing Satisfaction StudyTM
Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.
