Fast Funding Will Keep Dealers Satisfied

canstockphoto27321359Relationship and funding speed were the two main factors affecting auto lenders’ rankings in J.D. Power’s annual U.S. Dealer Financing Satisfaction Study, according to Michael Buckingham, senior director of the auto finance practice at J.D. Power.

“As liquidity is strong and pricing is low, the competition among lenders is high,” Buckingham told Auto Finance News. “Thus, a key differentiator is the application approval process.” The sub drivers, Buckingham said, are lenders’ ability to underwrite quickly and provide fast funding. “Cash flow is critical, as dealers become larger and more franchised; it’s a byproduct of just how competitive the market place is.”

The Satisfaction Study, released today, measures dealer satisfaction with finance providers in four segments: prime retail credit, non-prime retail credit, retail leasing and floor planning. Satisfaction is calculated on 1,000-point scale. This year, the study was sent out in March to over 3,900 new-vehicle dealerships across the U.S.

As dealers increasingly indicate a need for faster funding, lender ranking was affected by the availability of e-contracting or other lender-provided technology to enable same-day contract funding, Buckingham said. “Many of the captives have decided to get into e-contracting, you don’t see that same push on the non-captives,” he said. “We advise our clients and we see the market moving that way.” According to the study, 56% of the dealers surveyed indicate that faster funding time is the main reason to use e-contracting, and about 49% of the dealers are using e-contracting with captives. The percentage is half as much – 27% – with non-captives.

This year, Buckingham said, dealers were more responsive to the survey. In fact, the number of dealers rose 30% year over year. The rankings, however, were flat as compared to last year, with Mercedes-Benz ranking highest in all segments. “From our end we try to make the survey easier. But as the market has gotten very competitive, the lenders are seeking dealer feedback much more. And they are being much more responsive to dealer concerns.”

Prime Retail Credit

Top 5

  1. Mercedes-Benz Financial Services 971
  2. MINI Financial Services  962
  3. Alphera Financial Services 961
  4. BMW Financial Services 953
  5. Lincoln Automotive Financial Services 944


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  1. Infiniti Financial Services 914
  2. Ford Credit 911
  3. Subaru Motors Finance 901
  4. Security Services Federal CU 898
  5. Ally Financial 897
  6. Toyota Financial Services 897
  7. NMAC 896
  8. BMO Harris Bank 878
  9. TD Auto Finance 877
  10. Mazda Capital Services 876
  11. Chase Automotive Finance 875
  12. Volvo Car Financial Services 875
  13. Huntington National Bank 874
  14. Fifth Third Bank 869
  15. INDUSTRY AVERAGE 868
  16. Citizens One 864
  17. Volkswagen Credit 862
  18. BB&T 860
  19. SunTrust 855
  20. Wells Fargo Dealer Services 853
  21. Capital One Auto Finance 850
  22. Honda Financial Service 849
  23. US Bank 843
  24. Bank of America 840
  25. Kia Motors Finance 836
  26. PNC Bank 836
  27. GM Financial 834
  28. Hyundai Motor Finance 831
  29. Credit Union Direct Lending 807
  30. Bank of the West 804
  31. Chrysler Capital 746
  32. Santander Auto Finance 711

Retail Leasing

Top 5

  1. Mercedes-Benz Financial Services 978
  2. BMW Financial Services 961
  3. Lincoln Automotive Financial Services 956
  4. Mini Financial Services 954
  5. Ford Credit 942


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  1. Toyota Financial Services 925
  2. Ally Financial 921
  3. Subaru Motors Finance 901
  4. INDUSTRY AVERAGE 894
  5. Volvo Car Financial Services 876
  6. NMAC 874
  7. Mazda Capital Services 872
  8. Volkswagen Credit 869
  9. GM Financial 854
  10. Hyundai Motor Finance 854
  11. Kia Motors Finance 847
  12. Honda Financial Services 845
  13. US Bank 772
  14. Chrysler Capital 762

Floor Planning

Top 5

  1. Mercedes-Benz Financial Services 986
  2. BMW Financial Services 974
  3. Ford Credit 961
  4. Ally Financial 950
  5. INDUSTRY AVERAGE 943


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  1. Toyota Financial Services 941
  2. Chase Automotive Finance 934
  3. NMAC 931
  4. GM Financial 926
  5. Hyundai Motor Finance 913
  6. Bank of America 908
  7. Kia Motors Finance 900

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