Lenders in the automotive space are in a unique position to support auto dealers and help turn their challenges into opportunities for business growth — so long as they remain responsive, provide value-added insights, and leverage digital communications, according to a J.D. Power report.
The J.D. Power 2020 Canada Dealer Financing Satisfaction Study was released on May 14, and indicates that lenders could position themselves competitively post-pandemic if they can meet the needs of dealers — particularly where digital is concerned.
“The current environment has ramped up the need for digital channels,” said Patrick Roosenberg, Director of Automotive Finance at J.D. Power. “As lenders further develop their digital channels, dealers will need training to fully execute transactions from credit applications to funding. This is an area where lenders can excel and gain a competitive edge.”
It is an area that is expected to remain important even when social distancing rules are eased, as these digital transactions will continue to grow due to consumer preference.
For dealers, 60 per cent of respondents said that credit desk personnel are the first point of contact for any issues or concerns, while 76 per cent said they were able to engage with credit staff when needed.
The study also reveals that sales representatives who surpass dealer expectations by providing their dealer partners with specific, valuable insights and competitive information can have a higher impact on overall satisfaction and dealer intent to send more business their way.
“Lenders need to capitalize on their sales representatives’ ability to capture incremental business and utilize the most-effective communication channels,” said Roosenberg. “Doing so will allow them to cater to the needs of dealers and help overcome current challenges, and it will act as a springboard for future mutual business growth in the post-pandemic era.”
In terms of the rankings pulled from the study, Acura Financial Services ranked highest in the captive lender segment with a score of 934 (on a 1,000-point scale). Ford Credit (912) ranked second and Honda Financial Services (886) came in third. Overall satisfaction in the captive segment declined to 869 from 883 in 2019.
For non-captive lenders, TD Auto Finance ranked highest for the third consecutive year, with a score of 912. Scotiabank (908) came in second and Conexus Credit Union (901) ranked third. In the non-captive segment, overall satisfaction increased to 889 — up from 878 in 2019.
In the lease segment, which is new for 2020, Ford Credit ranked highest with a score of 903. Honda Financial Services (888) came in second and Toyota Financial Services (885) was third on the list. The lease segment’s overall satisfaction score is 859.
The study was fielded in February 2020.
