GM Financial showed room for improvement in a recent J.D. Power evaluation of automotive finance providers in Canada.
J.D. Power published the results of its 2022 Canada Dealer Financing Satisfaction Study this week, which analyzed dealer feedback from 6,919 automotive finance provider evaluations. This info was used to assign finance providers a numerical score based on a 1,000-point scale, with a higher score reflecting a stronger overall level of customer satisfaction. Finance firms were separated into four categories: Retail – Captive, Retail – Non-Captive Prime, Retail Non-Captive Non-Prime and Lease.
GM Financial was ranked last among financial institutions in the Retail – Captive category with a score of 748 out of a possible 1,000. Ford Credit led the way in this category with a score of 919, followed by Hyundai Motor Finance (912), Kia Motors Finance (909) and Honda Financial Services (897). The average score among retail captive finance companies was 895, with Toyota Financial Services and Nissan Canada Finance joining GM Financial below this threshold.
Additionally, GM Financial was also ranked last among captive finance firms in the Lease category. Ford Credit also led this category, with Hyundai and Honda in second and third, respectively. The average score among leasing finance firms was 873.
Many automakers are currently selling fewer vehicles at higher average transaction prices due to the semiconductor chip shortage and other supply chain snags. Patrick Roosenberg, director of automotive finance intelligence at J.D. Power, said this puts added pressure on finance firms, as they have fewer chances to interact with dealers.
“Dealers are looking for a seamless, speedy interaction with a lender, and lenders need to be laser-focused on satisfying that need—especially when the volume of transactions is reduced,” Roosenberg said. “Even with increased automation in the approval and funding processes, lenders must find a way to differentiate themselves from other lenders, whether it’s system-related or actions taken by funding, retail credit or sales reps.”
“With dealer preference shifting towards phone, email and text interactions—and away from onsite visits—sales reps need to know which channel a dealer prefers to be more effective in a hyper-competitive market,” he added. “In other words, the right message through the right channel at the right time.”
GM Financial recently expanded its operations with the introduction of the new Cadillac Financial arm, which will provide finance products and solutions to purchasers and lessees of new Cadillac vehicles.