J.D. Power and Associates Reports: GMAC Ranks Highest in Canadian Dealer Satisfaction with Retail Credit, Retail Leasing and Floor Planning for a Second Consecutive Year

    Lenders Working Closely with Dealers Helps Boost Satisfaction

    TORONTO, June 3 /CNW/ - GMAC ranks highest among finance providers in
retail credit, leasing and floor planning in Canada for a second consecutive
year, according to the J.D. Power and Associates 2008 Canadian Dealer
Financing Satisfaction Study(SM) released today.
    The study examines dealers' satisfaction with their finance providers in
three segments: retail credit, retail leasing and floor planning. GMAC ranks
highest in retail credit with an index score of 907 on a 1,000-point scale, as
well as in retail leasing (903) and floor planning (939).
    Across the industry, average dealer satisfaction in each segment has
increased. After three consecutive years of declining satisfaction, dealers'
satisfaction with their overall relationship with their lender has increased
by 17 points-driven mainly by improvements by banks and independent providers.
    "There is a strong link between the dealer-lender relationship in terms
of driving overall satisfaction with a finance provider," said Adrian Chung,
manager of automotive syndicated research at J.D. Power and Associates. "While
captives still maintain a stronghold in satisfaction, concentrated efforts by
banks and independent providers to establish closer bonds with dealers have
resulted in considerable improvements, and can lead to greater financial
success for both dealers and their lenders."
    The study finds that how the relationship is managed is a key factor in
satisfaction-of those dealers who rate the relationship with their lender as
"outstanding," 53 percent were visited by sales representatives on a monthly
basis. Of these dealers, 90 percent work with the same contact each time, and
43 percent of dealership personnel, particularly the key decision-makers, say
that being able to reach the same contact each time is "very important."
    "While the frequency of dealer visits is important, the method of
communication can also make a difference in satisfaction with the
dealer-lender relationship," said Chung. "Banks tend to send information via
fax, but nearly one-half of dealers would prefer to receive information
through e-mail."
    The study also finds that 61 percent of dealers say that the importance
of sub-prime retail credit will increase within the next year, as more
individuals with high credit risk look to purchase new vehicles but do not
qualify for prime rates. While satisfaction scores for sub-prime providers are
lower than those of prime credit providers, only 33 index points separate the
top and bottom rank positions within sub-prime credit, indicating the
competitive nature of the market.
    The 2008 Canadian Dealer Financing Satisfaction Study is based on
responses from 1,114 new-vehicle dealers. The study was fielded in February
and March 2008.

    About J.D. Power and Associates

    Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement,
training and customer satisfaction. The company's quality and satisfaction
measurements are based on responses from millions of consumers annually. For
more information on car reviews and ratings, car insurance, health insurance,
cell phone ratings, and more, please visit JDPower.com. J.D. Power and
Associates is a business unit of The McGraw-Hill Companies.

    About The McGraw-Hill Companies

    Founded in 1888, The McGraw-Hill Companies (NYSE:   MHP) is a leading
global information services provider meeting worldwide needs in the financial
services, education and business information markets through leading brands
such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power
and Associates. The Corporation has more than 280 offices in 40 countries.
Sales in 2007 were $6.8 billion. Additional information is available at

    No advertising or other promotional use can be made of the information in
this release without the express prior written consent of J.D. Power and
Associates. www.jdpower.com/corporate

    NOTE: Retail Credit, Retail Leasing and Floor Planning charts available
    on request

For further information:

For further information: Media Relations Contacts: Jordana Wolch, Cohn &
Wolfe Toronto, Canada (647) 259-3303, jordana.wolch@cohnwolfe.ca

Organization Profile

J.D. Power and Associates

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890