J.D. Power and Associates Reports: BMW Financial Services, Ford Credit and Hyundai Financial Services Each Rank Highest in Consumer Financing Satisfaction in Their Respective Segments
Posted on: Thursday, 4 December 2008, 08:19 CST
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The study, now in its 13th year, measures customer satisfaction with the new-vehicle financing process and examines the intentions, priorities, influences and preferences of new-vehicle buyers and lessees. Four factors are examined to determine customer satisfaction with automotive finance providers: application approval process; customer contact; payment/billing process; and provider offering.
BMW Financial Services ranks highest in the luxury loan segment with a score of 860 on a 1,000-point scale, performing particularly well in three factors driving satisfaction: application approval process; finance provider offering; and payment/billing process. GMAC (798) and Honda Financial Services (792) follow BMW Financial Services in the segment.
For a second consecutive year, BMW Financial Services (786) ranks highest in the luxury lease segment, performing particularly well in payment/billing process. Ford Credit follows BMW Financial Services with 785, and Honda Financial Services ranks third with 781.
Non-Luxury Loan Segment Rankings
Performing well in finance provider offering, Hyundai Motor Finance Company ranks highest among non-luxury loan providers with 795. Ford Credit (786) and
Non-Luxury Lease Segment Rankings
Ford Credit ranks highest among non-luxury lease providers with 787, performing particularly well in the application approval process. Volkswagen Credit (780) and Honda Financial Services (772) follow Ford Credit in the rankings.
Other Study Findings
The study finds that involving customers in the finance provider selection process can lead to higher satisfaction with the lender, as well as to higher rates of intended loyalty and advocacy. Among customers who arrive at the dealership with a lender preference and use that lender to finance their new vehicle, overall satisfaction averages 837. In addition, 48 percent of these customers indicate that they "definitely will" use the lender again and 50 percent say they "definitely will" recommend the lender to others. In contrast, satisfaction averages 746 among customers who intend to have the dealer work out financing arrangements for them. Only 22 percent of these customers say they "definitely will" use the lender again and 23 percent say they "definitely will" recommend the lender.
"Because customers who are more involved with the finance provider selection process tend to be more satisfied, it's essential for lenders to proactively communicate with existing customers and reach out to potential new customers," said
The study also finds that Internet use among new-vehicle buyers to research financing options has increased to 64 percent of luxury customers and 55 percent of non-luxury customers. More than 30 percent of luxury-vehicle owners report that Internet research has a considerable impact on their finance provider selection, while 26 percent of non-luxury-vehicle owners say the same.
The 2008 Consumer Financing Satisfaction Study is based on responses from 27,964 consumers who financed their new vehicle during the past five to seven months. The study was fielded between May and
Finance Provider Satisfaction Index Ranking
Luxury Loan Segment
(Based on a 1,000-point scale)
Index JDPower.com Power Lender Score Circle Ratings ------ ------- For Consumers ------------- BMW Financial Services 860 5 GMAC 798 4 Honda Financial Services 792 4 Mercedes-Benz Financial 791 4 Infiniti Financial Services 777 3 Luxury Loan Segment Average 776 3 Lexus Financial Services 774 3 Chase Auto Finance 739 2 Bank of America 726 2Included in the study but not ranked due to small sample size are: Audi Financial Services, Ford Credit and US Bank.
Luxury Lease Segment
(Based on a 1,000-point scale)
Index JDPower.com Power Lender Score Circle Ratings ------ ------- For Consumers ------------- BMW Financial Services 786 5 Ford Credit 785 5 Honda Financial Services 781 5 Lexus Financial Services 778 4 Luxury Lease Segment Average 767 3 Mercedes-Benz Financial 765 3 Audi Financial Services 764 3 GMAC 762 3 Infiniti Financial Services 740 2 Volvo Car Finance 734 2Included in the study but not ranked due to small sample size are: Land Rover Capital Group, Porsche Financial Services and US Bank.
Non-Luxury Loan Segment
(Based on a 1,000-point scale)
Index JDPower.com Power Lender Score Circle Ratings ------ ------- For Consumers ------------- Hyundai Motor Finance Company 795 5 Ford Credit 786 5 Mazda American Credit 780 4 GMAC 769 4 Honda Financial Services 769 4 Volkswagen Credit 765 4 Chrysler Financial 761 4 Toyota Financial Services 755 4 Nissan Motor Acceptance 749 3 Non-Luxury Loan Segment Average 739 3 Mitsubishi Motors Credit 727 3 Subaru Motors Finance 725 3 US Bank 718 3 Regions 708 2 Bank of America 706 2 Wachovia Dealer Services 705 2 Branch Banking and Trust 697 2 Chase Auto Finance 696 2 Harris Bank 695 2 Citizens/Charter One Auto Finance 683 2 CitiFinancial Auto 677 2 SunTrust Bank 673 2 Capital One Auto Finance 668 2 Sovereign Bank 668 2 Huntington National Bank 659 2 Fifth Third Bank 651 2Included in the study but not ranked due to small sample size are: AmeriCredit/Bayview, Bank of the West, Compass Bank, Drive Financial Services, Fidelity, HSBC Auto Finance, Kia Motor Finance, M&T Bank, National Auto Finance Company, PNC Bank, Security Service Federal Credit Union, State Farm Bank, Suzuki Financial Services, TD Banknorth, Valley National Bank, Wells Fargo Auto Finance, Wilmington Trust and World Omni.
Non-Luxury Lease Segment
(Based on a 1,000-point scale)
Index JDPower.com Power Lender Score Circle Ratings ------ ------- For Consumers ------------- Ford Credit 787 5 Volkswagen Credit 780 5 Honda Financial Services 772 4 GMAC 771 4 Toyota Financial Services 753 3 Non-Luxury Lease Segment Average 752 3 Chrysler Financial 742 3 Mazda American Credit 729 2 Nissan Motor Acceptance 717 2 Subaru Motors Finance 678 2Included in the study but not ranked due to small sample size is Mitsubishi Motors Credit.
About J.D. Power and Associates
Headquartered in
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were
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SOURCE J.D. Power and Associates
Source: PR Newswire
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