GM Financial ranked poorly in the recently published 2020 J.D. Power U.S. Dealer Financing Satisfaction Study.
J.D. Power says its U.S. Dealer Financing Satisfaction Study “measures auto dealer satisfaction” with lenders across six different types of financing: captive luxury–prime, captive mass market–prime, lease, non-captive national–prime, non-captive regional–prime and non-captive sub-prime. The study is based on responses from 3,960 auto dealer financial professionals fielded between August 2020 and September 2020.
GM Financial was the third worst ranked financing company included in the study for Captive – Mass Market financing, finishing just head of Nissan’s NMAC in the second-to-last spot and Chrysler Capital in last.
GM Financial was also third last in the Lease financing category, once again finishing just ahead of NMAC and Chrysler Capital. Volkswagen Credit lead the way in the Captive – Mass Market financing category, while Audi Financial Services was on top in the Lease category.
Patrick Roosenberg, director of automotive finance intelligence at J.D. Power, said financial institutions like GM Financial will need to focus on strong communication with dealerships going forward if they wish to improve customer satisfaction with their services.
“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 Roosenberg. “With lenders’ sales reps forgoing on-site dealer visits and the credit staff and funders working remotely, the need for consistent and reliable communication is paramount to dealer satisfaction. Lenders will need to step up their efforts to deliver high levels of service to help facilitate sales, whether those transactions are happening virtually or in the dealership. Knowledgeable, helpful and available sales reps, credit analysts and funders can help drive incremental business.”
GM Financial recently celebrated its 10-year anniversary in October. General Motors’ captive finance arm was established in 2010 after the Detroit-based automaker acquired AmeriCredit for $3.5 billion. The automaker renamed the company GM Financial, using it for in-house vehicle financing and leasing options for customers in the United States and Canada.
“GM’s growing captive finance company has become an integral and strategic business unit since it was acquired in 2010 and renamed GM Financial, supporting both customers and dealers across economic cycles,” the automaker said in a statement released earlier this year.