J.D. Power and Associates Reports: Dealers Overall Level of Satisfaction With Finance Providers Hits Four-Year Low
31 July 1997
J.D. Power and Associates Reports: Dealers Overall Level of Satisfaction With Finance Providers Hits Four-Year LowAGOURA HILLS, Calif., July 31 -- For the second year in a row, dealer satisfaction with financial providers has declined, according to the J.D. Power and Associates 1997 Dealer Finance Study(SM). The study reveals that while 69 percent of dealers claim to be "Very" or "Somewhat" satisfied, this is a drop of 2 percentage points compared to 1996 -- and a four year industry low. In addition, the study shows that high volume dealers -- dealers who sell or lease more than 700 cars a year, who account for 34 percent of all dealers -- were less satisfied than lower volume dealers. "Because high volume dealers account for roughly 75 percent of all vehicle financing and leasing, there is substantial opportunity for financing providers to gain share through better meeting these large dealers needs," commented David McKay, senior manager of auto finance research at J.D. Power and Associates. "Providers with a broad geographic reach, substantial resources, and a strong service orientation are the most likely candidates to be successful at serving these large dealers," said Mr. McKay. While overall industry performance is down, there are several providers who excel this year. Four providers will receive awards based on their performance in the three financing areas: * Highest ranked in dealer retail credit satisfaction: First Security Bank * Highest ranked in dealer retail leasing satisfaction: BMW Financial Services, and * Highest ranked in dealer floor planning satisfaction: Ford Credit and Toyota Motor Credit Company. The study also shows a link between dealer satisfaction with finance providers and the perceived value of the service provided by these financial institutions. Providers who have the highest perceived value scores, also achieve the highest satisfaction rankings. Finally the J.D. Power and Associates 1997 Dealer Finance Study(SM) explores the relationship between satisfaction, value, and provider usage. Findings show that when a provider delivers more value than competitors, dealers are more likely to be satisfied with the provider, and thus, intend to increase the usage of that provider. "In this highly competitive market providers who don't deliver value and ignore dealer's satisfaction, will lose business," concluded Mr. McKay. The J.D. Power and Associates 1997 Dealer Finance Study(SM) is an annual study, based on a mail survey conducted in April of 1997. The study includes responses from more than 3,000 dealer principals'. J.D. Power and Associates is an international firm best known for its marketing information services in key business sectors including market research, forecasting, and customer satisfaction. The firm's quality and satisfaction measurements are based on actual customer responses from over a million consumers annually. With its headquarters in Agoura Hills, California, the firm also has U.S. offices in Torrance, California; Michigan; and Connecticut. Its international locations include Japan, Korea, England, Canada and Brazil. J.D. Power and Associates can be accessed through the World Wide Web at http://www.jdpower.com. Email: info@jdpower.com. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates survey results without the express prior written consent of J.D. Power and Associates. SOURCE J.D. Power and Associates