J.D. Power: Dealers Counting on Business from Subprime Customers

WESTLAKE VILLAGE, Calif. – Most dealers interviewed for a recently conducted study by J.D. Power and Associates indicated they plan to increase nonprime business in the next year. The company’s 2004 Dealer Financing Satisfaction Study cited several factors influencing dealers’ increased interest in subprime financing such as a tough job climate nationally and a flat market for used vehicles. The 2004 Dealer Financing Satisfaction Study also showed dealers’ satisfaction with independent finance companies increased slightly from last year’s survey, but they’re still least satisfied with this financing source. Automakers’ captive finance companies got the highest satisfaction scores. Credit unions came in second and banks followed in third. Tim Dennis, director of auto finance for J.D. Power, said the most important aspect of dealer satisfaction is the support a lender provides which includes dealer training, visits by sales representatives, and knowledge of the industry. Dealers also want lenders to provide competitive pricing and flexibility in credit decisions, he said.