COVID Changes – Digital Auto Lending Infected

Ken Zino of AutoInformed.com on auto lending satisfaction

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COVID-19 pandemic has simultaneously strained day-to-day operations and pushed more transactions than ever to digital, according to the J.D. Power, which released the 2020 U.S. Dealer Financing Satisfaction Study.

“The pandemic has severely disrupted dealer-lender communication, with many dealers reporting that lenders were delayed or not available when they needed them, or not able to assist in a timely manner,” said Patrick Roosenberg, director of automotive finance intelligence at J.D. Power. This of course begs the question of there’s another solution – such as borrowers dealing directly digitally with lenders, which will eliminate a lucrative profit center at dealerships.

Study Rankings

Captive – Mass Market Segment

  • Volkswagen Credit ranks highest in overall dealer satisfaction with a score of 939 (on a 1,000-point scale),
  • followed by Subaru Motors Finance (934) and
  • Honda Financial Services (902).

National Banking

  • TD Auto Finance ranks highest in overall dealer satisfaction with a score of 931,
  • followed by Ally Financial (922) and
  • Chase Automotive Finance (872).

Regional Banking

  • Citizens One Auto Finance ranks highest in overall dealer satisfaction with a score of 954,
  • followed by Huntington National Bank (910) and
  • Fifth Third Bank (879).

Sub-Prime

  • Ally Financial ranks highest in overall dealer satisfaction with a score of 913,
  • followed by Chase Automotive Finance (878) and
  • Capital One Auto Finance (820).

Lease

  • Audi Financial Services ranks highest in overall dealer satisfaction with a score of 970,
  • followed by Subaru Motors Finance (946) and
  • Volkswagen Credit (941).

The 2020 U.S. Dealer Financing Satisfaction Study is based on responses from 3,960 auto dealer financial professionals. The study, which was fielded in August-September 2020, measures auto dealer satisfaction in six segments of lenders: captive luxury–prime;1* captive mass market–prime; lease; non-captive national–prime; non-captive regional–prime; and non-captive sub-prime.

1* The captive luxury segment did not meet requirements to be award eligible.

About Ken Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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