In the most recent edition of the J.D. Power U.S. Dealer Financing Satisfaction study, GM Financial was ranked below the segment average, indicating that dealerships aren’t particularly satisfied with The General’s 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 in the Captive Mass Market segment, earning it the seventh overall ranking. This places it below the segment average of 723, and between Toyota Financial Services and NMAX at 732 and 675, respectively. Meanwhile, Southeast Toyota Finance was ranked at the top of the list with a score of 889.
It’s worth noting that although this is the same score as the 2023 edition, GM Financial actually rose from ninth to seventh place for the 2024 rendition.
“There is a growing sense of concern among dealer finance teams that the increased prevalence of AI in the lending process will limit their ability to find creative solutions, forge key relationships with lenders and effectively close deals,” J.D. Power Automotive Finance Intelligence Senior Director Patrick Roosenberg noted in a prepared statement. “It is important to note, however, that this is not the first time that technology has upset the status quo. Lenders need to leverage past experiences and lessons learned in previous technological transformations, such as the introduction of digital and modern retailing technologies. These all ultimately improved the lending process for dealers who embraced the change and learned how to leverage technology to their advantage.”
For reference, J.D. Power discussed how the automotive lending business has been quickly transformed by AI due to faster and more cost-effective credit decisions and approval processes. That being said, the publication did note that 55 percent of surveyed dealership finance teams claimed that they are uncomfortable with AI, which is up from 50 percent in 2023.
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Comments
I admit, I am old. Do you remember GMAC? They seemed to do a better job.
We have had 2 leases through GM with no problem But if they are responsible for the lease arrangements \ prices on the 2024 Cadillac XT5 they are out of their minds ,Cadillac has lost 3 sales the I know of because of these High amounts…