In the recent 2023 J.D. Power U.S. Dealer Financing Satisfaction study, GM Financial was ranked well below the segment average, indicating that consumers aren’t satisfied with General Motors’ financial arm.
According to a report from J.D. Power, GM Financial was given a score of 687 out of a possible 1,000 points. This places the subsidiary well below the segment average of 731, while Southeast Toyota Finance was ranked at the top of the list with a score of 901.
“Finance teams overwhelmingly prefer one-on-one interaction with lending sales reps in the dealership, but there is a catch,” J.D. Power Automotive Finance Intelligence Senior Director Patrick Roosenberg stated in a prepared statement. “Those sales reps need to be prepared and the meetings need to be highly effective. When sales reps can clearly communicate current and upcoming programs and speak to the specifics of the dealership customer base, dealers are four times more likely to send more business within the next 12 months. The problem is, today, lender reps miss the mark on delivering a highly effective sales meeting nearly 40 percent of the time.”
In the report, J.D. Power discussed how the auto lending business has begun to shift towards AI and a more electronic experience. However, the publication did note that 77 percent of surveyed dealership finance and insurance (F&I) teams claim that in-person meetings with sales reps are the key to increased business with lenders.
“When it comes to the introduction of AI and machine learning in the loan adjudication and approval process, 30 percent of dealership finance teams say they are comfortable with the process,” Roosenberg added. “However, half say they are not, so it really is about striking the right balance between people and technology as the industry evolves.”