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BMW, VW tops in dealer poll on financing

November 22, 2010

BMW Financial Services ranks highest in satisfying dealers with prime retail credit and retail leasing, while Volkswagen Credit Finance ranks highest in floor planning, according to a new J.D. Power and Associates report.


The 2004 Dealer Financing Satisfaction Study, based on responses from more than 4,000 dealer principals, measures satisfaction levels with finance providers in five main areas: prime retail credit, non-prime retail credit, retail leasing, floor planning and account management.


In the area of prime retail credit, BMW Financial Services scored well from dealers in consumer qualification and dealer support. Among retail leasing providers, BMW Financial Services performs well in competitiveness, lease initiation and lease-end support.


In the floor planning area, Volkswagen Credit is rated highly by dealers in the derived diagnostic measures on non-price (MPQ), price (MPP) and overall value rankings (market-perceived value, or MPV).


Overall dealer satisfaction with automotive finance providers continues to improve. According to the study, 75 percent of automotive dealers are satisfied with their lending providers—the highest satisfaction level since the inception of the study in 1994.


The study also found that despite strong consumer incentive programs, dealer F&I profits have increased year-over-year, due in part to strong vehicle service contract penetration. Dealer principals said F&I profits for new vehicles have increased 5.9 percent over 2003, and F&I profits on used vehicles have increased 3.7 percent.


Dealers also continue to adapt their operations to facilitate Internet sales. Dealers said 8 percent of all sales are generated from Internet leads—up from 7.1 percent in 2003.