Auto Dealers in Canada Want High-Value Engagements from Lenders' Sales Reps, J.D. Power Finds
Feeling the crunch of higher interest rates and continued low supply of new vehicles, Canada's auto dealerships are focused more than ever on running efficient operations, especially when it comes to interacting with their lenders. According to the J.D. Power 2023 Canada Dealer Financing Satisfaction StudySM released today, nearly 40% of dealers say an on-site visit from a lender's sales representative is not their preferred communication channel for sales meetings. Furthermore, when a sales representative interacts with a dealership, there is an expectation that the rep will bring significant value and meet certain key performance indicators (KPIs) such as explaining the lender's risk appetite so the dealer completely understands the provider's buying parameters.
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J.D. Power 2023 Canada Dealer Financing Satisfaction Study (Graphic: Business Wire)
"Dealers are looking for the most effective use of their time, so interactions with lenders' sales representatives need to be value-added whether that's via phone, text, email or in-person," said Patrick Roosenberg, senior director of automotive finance intelligence at J.D. Power. "While many dealers still want in-person meetings, lenders should be mindful about their clients' time and communications preferences. How they opt to interact with sales reps varies from dealership to dealership and should be taken into consideration. The underlying stance we hear from dealers is that each communication touchpoint must be value-add regardless of channel."
The study also shows the positive efect that a well-executed and value-add lender/dealer engagement has on future business. According to the study, when the sales rep meets all the KPIs, non-captive prime dealers are almost three times more likely to indicate they "definitely will" send additional business to the lender vs. those who don't meet the KPIs (64% vs. 27%, respectively.)
Kia Finance ranks highest in the captive prime segment with a score of 809 (on a 1,000-point scale). Honda Financial Services (804) ranks second and Ford Credit (793) ranks third. The segment average is 743.
In the non-captive prime segment, Scotiabank ranks highest, with a score of 815. TD Auto Finance (802) ranks second. The segment average is 765.
In the non-captive non-prime segment, TD Auto Finance ranks highest for a sixth consecutive year, with a score of 801. iA Auto Finance (791) ranks second. The segment average is 785.
The Canada Dealer Financing Satisfaction Study, now in its 25th year, this year captures 7,017 finance provider evaluations across three segments, all from new-vehicle dealerships in Canada. The study was fielded in February-March 2023 and was redesigned this year to better capture and reflect dealers' experiences with their lenders in their own words.
For more information about the Canada Dealer Financing Satisfaction Study, visit https://www.jdpower.com/business/auto-finance/canada-dealer-financing-satisfaction-study.
See the online press release at http://www.jdpower.com/pr-id/2023044.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modelling capabilities to understand consumer behaviour, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business.
About J.D. Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info
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