June 1, 2007
GMAC ranks highest with Canadian dealers, says J.D. Power
Toronto, Ontario – For the fifth time, GMAC ranks highest among finance providers in retail credit, leasing and floor planning, according to the 2007 Canadian Dealer Financing Satisfaction Study released by J.D. Power and Associates. The study examines dealership satisfaction with finance providers by retail credit, retail leasing and floor planning.
GMAC ranked highest in retail credit with an index score of 907 points on a scale of 1,000, along with 897 points in retail leasing and 938 in floor planning.
Overall, dealer satisfaction with providers has declined slightly for the second consecutive year, with banks declining in particular by 14 index points. The study finds that the importance of retail credit among Canadian dealers has increased, with 47 per cent of dealers citing it as the most important finance area, up from 44 per cent in 2006. The study says that a shift away from leasing makes retail credit more important to Japanese brands with their strong sales, while floor planning is gaining significance with Korean brands, due to the increasing number of new models and the resulting complications to floor planning.
The study also found that although the sub-prime market is more developed in the U.S., Canadian dealers are increasingly putting energy into sub-prime transactions Only finance providers that focus on the sub-prime market significantly increased their market penetration significantly when compared with 2006. The study is based on responses from 1,355 new-vehicle dealers.