• by Karl Greenberg , December 4, 2008

In J.D. Power and Associates' new study of customer satisfaction with the new-vehicle finance process, BMW Financial Services ranks highest in the luxury loan and lease segments, while Hyundai Motor Finance Company ranks highest among non-luxury loan providers. Ford Credit ranks highest among non-luxury lease providers.

The 13th annual Consumer Financing Satisfaction Study is composed of responses from 27,964 consumers who financed their new vehicles during the past five to seven months. It bases results on customer reaction to the application approval process; customer contact; the payment/billing process; and provider offering.

In the study, customers gave BMW Financial Services high marks for the application approval process; the finance provider offering; and the payment/billing process. Behind Beemer were GMAC and Honda Financial Services.

Hyundai Motor Finance Company ranks highest among non-luxury loan providers, with Ford Credit and Mazda American Credit second and third.

In the leasing area, Ford Credit ranks highest among the non-luxury brands, while Volkswagen Credit and Honda Financial Services followed.

Rich Howse, senior director of the automotive finance practice at J.D. Power and Associates, says that involving customers in the finance provider selection process can lead to higher satisfaction with the lender, as well as to higher rates of intended loyalty and advocacy.

For example, among customers who arrive at the dealership with a lender preference and use that lender to finance their new vehicle, overall satisfaction is high, with 48% of these customers saying they "definitely will" use the lender again and 50% saying they "definitely will" recommend the lender to others.

But satisfaction dropped in the study among customers who intended to have the dealer work out financing arrangements for them. Only 22% of these customers said they "definitely will" use the lender again.

"But what we have seen is that the lenders do have an effect on how they promote and advertise programs they have," he says. "And the key is if they can get to the consumer when they are still in the decision-making process. If they do, they will have an influence."