Vehicle dealers in Canada have reported that they’re more satisfied with finance companies but they want more than just credit from their lenders.
According to the 18th annual Canadian Automotive Dealer Financing Satisfaction Study by JD Power, auto dealers want finance providers to be true business partners to them.
“Dealers want their lenders to be collaborative business partners that will help them focus on the things that drive profitable growth without impairing their ability to sell vehicles,” said Mike Buckingham, senior director of the automotive finance practice at JD Power.
Dealers want personalized from underwriting/funding and sales teams to assist in managing their credit and speed up consumer applications and release of funds. Dealers are now much more concerned about customer satisfaction and trust their lender partners to help them in expediting the sales, financing and vehicle delivery aspects of the business.
The survey measures dealer satisfaction with finance providers in four segments: prime retail credit; retail leasing; floor planning; and non-prime retail credit.
For the fourth consecutive year, BMW Financial Services was ranked first in the prime retail credit segment, gaining 35 points to 971, which is 113 points above industry average. Mercedes-Benz Financial Services placed second at 922, followed by Ford Credit Canada at third with 918.
Other lender scores were:
Honda Financial Services - 896
Bank of Montreal - 885
TD Auto Finance - 858
Nissan Canada Finance - 854
Scotiabank - 851
National Bank - 842
Toyota Financial Services - 835
Desjardins/Caisse Populaire - 827
RBC Royal Bank - 815
Kia Motors Finance - 787
GM Financial - 706
According to the survey, 60% of dealers reported that their prime retail credit (PRC) sales reps take charge of resolving contract problems. Nearly half of dealers say sales reps provide dealership performance consulting and facilitate restructuring of applications. Additionally, 69% of dealers state that they can always reach their credit staff when needed.
“Sales representatives are integral to the dealer-lender relationship,” Buckingham said. “To make that relationship strong requires that the lender’s rep make frequent contacts with the dealership, understand their business, provide insights on current programs and help the dealer resolve financing issues.”
“In a highly competitive market like Canada, time is of the essence,” he continued. “Dealers want to be able to get quick funding, as any delay can lead to a lost opportunity, with the customer walking out the door.”
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