Credit Desk Becomes Auto Lenders’ Secret Weapon for Driving Dealer Satisfaction, J.D. Power Finds
Mercedes-Benz Financial Services, MINI Financial Services and TD Auto Finance Earn Top Marks
COSTA MESA, Calif.: 14 Aug. 2017 — Great relationships trump low interest rates and product mix when it comes to automobile dealer satisfaction with lending institutions. According to the J.D. Power 2017 U.S. Dealer Financing Satisfaction Study,SM released today, the interactions between dealers and frontline personnel working in the lender’s credit department are at the epicenter of that relationship.
“Across all segments of auto lenders—non-captive, captive mass market and captive luxury—the dealer’s relationship with the credit desk is a key driver of overall satisfaction and the lynchpin to a sustained, fruitful relationship,” said Jim Houston, Senior Director of the Automotive Finance Practice at J.D. Power. “Because the credit staff is often the first point of contact, not just for credit decisions, but also for problem resolution, the role has to evolve, with credit analysts becoming much broader subject matter experts and frontline sales personnel taking on more focused roles.”
Following are some of the key findings of the study:
- Credit desk becomes “tip of the sword” in building dealer satisfaction: For non-captive, captive luxury and captive mass market lenders, the credit desk represents more than half of the survey weight for overall satisfaction, compared with the impact of sales representatives. Overall, the dealer/lender relationship outweighs application and approval process, lender offerings and lease return as the single most important variable associated with high levels of dealer satisfaction.
- Sales reps move away from problem solving toward selling value: Dealers overwhelmingly indicate that the credit desk is their first point of contact when looking to resolve problems, far outpacing sales representatives, sales support staff and regional managers. As such, dealer satisfaction with sales reps is highest when reps focus on portfolio performance review, dealership performance consulting and customer retention vs. problem resolution and training.
- Finding the Goldilocks scenario for dealer communications: The optimal dealer communications mix for lenders involves a predictable cadence of monthly visits paired with weekly calls and emails. When touch points outside of these preferred parameters are used, overall satisfaction with sales reps falls by as much as 30 index points (on a 1,000-point scale).
“What this study really tells us is that many lenders should be taking a good long look at the way they are currently staffed and think about transitioning some of their most seasoned industry experts into problem-solving roles in the credit department,” Houston added. “Correspondingly, they also need to think about how they’re currently selling and re-evaluate whether it makes sense to have their best problem solvers on the road making sales calls.”
The study, which was significantly redesigned for 2017, measures auto dealer satisfaction in four segments of lenders: non-captive, captive mass market, captive luxury market and floor planning. The non-captive analysis evaluates the dealer/lender relationship across three factors: relationship, provider offerings and application/approval process. In the captive mass market and luxury segments, four factors are evaluated: relationship, provider offerings, application/approval process and lease return. Three factors are measured in the floor planning segment: relationship, portfolio management and provider credit line.
The 2017 U.S. Dealer Financing Satisfaction Study captures more than 11,622 finance provider evaluations across the four segments. These evaluations were provided by 4,245 new-vehicle dealerships in the United States.
Mercedes-Benz Financial Services ranks highest among lenders in the captive luxury segment for the third consecutive year, with a score of 972 points. It is followed by BMW Financial Services (955) and Infiniti Financial Services (953).
Captive Mass Market
MINI Financial Services ranks highest among lenders in the captive mass market segment, with a score of 954 points. Following in the mass market rankings are Volkswagen Credit (916) and Ford Credit (887).
TD Auto Finance ranks highest among lenders in the non-captive segment, with a score of 912 points. Citizens One Auto Finance follows with a score of 909 and Chase Automotive Finance and Huntington National Bank tie for third with a score of 906.
Mercedes-Benz Financial Services also ranks highest among floor planning lenders, with a score of 986 points. TD Auto Finance follows with a score of 982 and Huntington National Bank and Volkswagen Credit tie for third with a score of 970.
For more information about the 2017 U.S. Dealer Financing Satisfaction Study, visit http://www.jdpower.com/resource/us-dealer-financing-satisfaction-study.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.
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