GM Financial finished dead last in J.D. Power’s 2021 Canada Dealer Financing Satisfaction Study, which aims to rate and rank the individual financial arms of various major automakers in the country.
J.D. Power says it compiled data from 7,190 automotive finance provider evaluations from new-vehicle dealerships in Canada when creating this study, using this information to rank the captive finance arms on a 1,000 point scale.
Hyundai Motor Finance had the highest degree of satisfaction based on these evaluations, with J.D. Power awarding it a score of 901 out of 1,000. GM Financial, by comparison, was dead last among those captive retail financial arms that were included in the study with a score of 707. This score was far below the segment average of 869 and also quite far away from the next closest company, Nissan Canada Finance, which was given a score of 745.
Patrick Roosenberg, director of automotive finance at J.D. Power, says that automotive financial arms must launch new digital platforms to help facilitate online sales transactions in order to increase customer satisfaction.
“With an increasing number of auto sales moving to a full digital transaction model, lenders need to develop and launch digital platforms that enable the process from origination to funding—and be supported by the sales reps and credit analysts,” Roosenberg said. “Our study shows that a lender who effectively responds to this shift by developing and offering a digital solution is poised for future success.”
J.D. Power’s study also ranked customer satisfaction with regard to leasing. In this segment, GM Financial received a score of 719, marginally better than its purchasing finance performance, but still enough to place it under the industry average of 851. As for non-captive automotive financial institutions, TD Auto Finance finished at the top of the ranking with a score of 917 out of 1,000.