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Dealers pleased with finance providers: J.D. Power study

November 24, 2010
Fueled by zero-percent financing and accelerated auto sales, dealer satisfaction with automotive finance providers is at a record high, according to a new satisfaction study by J.D. Power and Associates. The study finds that 73 percent of dealer principals are satisfied with their financial providers, tying the previous record high set in the 1995 study by J.D. Power. Captives lead the way in dealer satisfaction, with 86 percent of dealers indicating they are "very" or "somewhat" satisfied with their financial provider-the highest rating in the nine-year history of the study. "The captives were the first to offer zero-percent financing, which helps get people into the dealerships, and the dealers love that," said David McKay of J.D. Power. "What also helps captives fare so well is that they generally are quicker at processing applications, they're more accessible and responsive to dealers and they have more consistent and predictable credit policies." Among the other finance provider segments, dealer satisfaction with banks increased the most, to 75 percent, compared with 73 percent in the 2001 study. Satisfaction with independents and credit unions also increased in 2002. Based on responses from more than 5,700 dealer principals, the study measures satisfaction levels with finance providers in four areas: prime retail credit, non-prime retail credit, retail leasing and floor planning. Audi Financial Services ranks highest in both dealer satisfaction in the prime retail credit satisfaction and retail leasing. VW Credit ranks highest in floor planning, which is associated with the dealer's ability to finance and insure their dealer inventory.