fbpx
Wednesday, 17 November 2021 12:52

BMW, Ford Top J.D. Power 2021 U.S. Consumer Financing Satisfaction Study

Index

Share This:

 

In an automotive market beset by supply shortages and record high prices, more vehicle shoppers than ever have begun shopping for vehicle financing before ever setting foot in a dealership.

According to the J.D. Power 2021 U.S. Consumer Financing Satisfaction Study, released Nov. 16, auto financing pre-approval has become the top of the funnel for auto loan customer acquisition and brand loyalty, putting the focus on digital channels as the starting point for the consumer financing journey.

 

"Auto financing customer behavior has fundamentally shifted from an exercise that largely took place in a dealership finance department to one that takes place online upwards of 30 days prior to a vehicle purchase," said Patrick Roosenberg, director of automotive finance intelligence at J.D. Power. "Nearly half---45%---of all customers now do research prior to financing a vehicle and their experiences with lenders can have a tremendous influence on that process. That really puts the onus on lenders to deliver a superior customer experience to existing customers and to position their websites and consumer marketing initiatives to maximize conversions."

 

Following are key findings of the 2021 study:

 

Pre-approval becomes lynchpin to auto financing journey: Nearly half (45%) of all auto loan customers do some type of research on financing options prior to purchasing a new vehicle. The proportion jumps to 62% among members of Generation Z. Ultimately, 60% of customers who shop online for auto financing options end up applying for a pre-approval.

 

Auto financing research begins a month before a purchase: Among most auto loan customers who research financing options prior to a purchase, the research process begins more than 30 days prior to purchasing or leasing a vehicle. Effective use of both applied for and unsolicited pre-approvals can lead to a greater customer recapture rate and conquest opportunities.

 

The memory remains: Current and past experiences with auto lenders matter now more than ever as many customers...


Previous Page Continue reading »