Source: J.D. Power 2025 Canada Dealer Financing Satisfaction Study(SM)
Lenders in Canada are facing significant challenges as the country’s automotive sector finds itself in a trade war that could increase the cost of borrowing and lead to higher new-vehicle pricing.
In navigating this situation lenders will need to exceed dealers’ expectations to grow their business, according to J.D. Power’s 2025 Canada Dealer Financing Satisfaction Study. In a statement, Patrick Roosenberg, Senior Director of Automotive Finance Intelligence at J.D. Power, said simply meeting dealers’ expectations is no longer the catalyst for growth in the current economic climate.
“How a lender’s sales rep engages with their dealers in terms of responsiveness, ability to solve issues and communicate consistently has a significant effect on satisfaction, which eventually manifests itself in generating new business opportunities,” said Roosenberg.
Data from the study shows top-performing lenders with high satisfaction scores are more likely to get additional business from dealers (61 per cent for top-ranking captive and 56 per cent for top-ranking non-captive) over the next 12 months, versus lenders in the middle (50 per cent captive and 42 per cent non-captive).
Sixty-three per cent of dealers said they “definitely will” increase business in the next 12 months “when sales rep facilitation of contract and problem resolutions exceeded expectations.” That figure slips to 42 per cent when expectations were only met.
“Sales rep’s responsiveness and effectiveness also play a role in dealer satisfaction,” said J.D. Power in its update. “While most (62 per cent) dealers prefer an on-site visit for a sales meeting, 71 per cent favour phone communication for problem resolution and expecting the reps to respond within half an hour or less (77 per cent).
As for how lenders ranked, Ford Credit was highest with a score of 812. Hyundai Motor Finance second with a score of 793, and Honda Financial Services third with a score of 775.
In the non-captive prime segment, TD Auto Finance ranked highest with a score of 830 and Scotiabank second with 799. In the non-captive non-prime segment, TD Auto Finance ranked highest for an eighth consecutive year, with a score of 820.
Source: J.D. Power 2025 Canada Dealer Financing Satisfaction Study(SM)
