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BMW Ranks The Best Across The Board In Automotive Financing For 2008

Agent009 submitted on 10/08/2008 Official AutoSpies Timestamp: 10:52 AM
from: www.jdpower.com

[27] user comments | category: Misc News

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BMW Ranks The Best Across The Board In Automotive Financing For 2008

Automotive finance providers that achieve high levels of satisfaction among dealers receive a larger share of business from those dealerships, according to the J.D. Power and Associates 2008 Dealer Financing Satisfaction Study^SM released today.

The study investigates automotive dealer satisfaction with finance providers in four segments: prime retail credit; retail leasing; subprime retail credit; and floor planning. It examines five key factors that contribute to satisfaction within the prime retail credit, retail leasing and subprime retail credit segments: provider offering; credit personnel; application/approval process; termination policy/service; and sales representative relationship. Four factors are measured in the floor planning segment: provider offering; floor plan support personnel; inventory process; and process/service.

The study finds that as dealers become more satisfied with a lender, they allocate a larger volume of their business to that lender. Some aspects of financing service that are particularly important to maximizing dealer satisfaction are the ability to interact with a single credit buyer, short application approval times and expedient funding. Within the prime retail credit segment, dealers who are “delighted” with their lender provide the lender with 53 percent of the loan originations generated at the dealership, on average, while dealers who report being merely “satisfied” provide lenders with 40 percent. In contrast, however, dealers who are “dissatisfied” with their lender give their lender only 26 percent of their business, on average

“Dealer satisfaction with automotive lenders clearly impacts the volume of retail business a lender receives,” said Rich Howse, senior director of the automotive finance practice at J.D. Power and Associates. “With more than 20,000 dealerships in the U.S., the potential revenue linked to increasing satisfaction can translate to billions of dollars. For instance, in the prime retail credit segment, the difference between just one dealer who indicates they are ‘delighted’ and one who indicates they are ‘dissatisfied’ can mean an average of more than $3 million in additional loan originations in one year.”

The study also finds that developing the dealer-lender relationship becomes particularly important given the current economic struggles and market turmoil. Within the floor planning segment, 44 percent of dealers report that the relationship with a lender is their primary reason for selecting a provider. Similarly, the dealer-lender relationship is cited most often as the primary reason for choosing a finance provider in the subprime retail credit segment.

“In today’s tough times, automotive lending priorities may be focused on the issues of liquidity and risk rather than dealer satisfaction, but lenders cannot afford to miss the growth opportunity tied to dealer satisfaction,” said Howse. “Dealers recognize those lenders that make the effort to partner with them for the long haul, so building and maintaining strong relationships with dealers will be the foundation of future revenue growth as the industry rebounds.”

BMW Financial Services ranks highest in all four segments examined in the study: prime retail credit; retail leasing; subprime retail credit; and floor planning. Rankings by segment are as follows:

Prime Retail Credit
BMW Financial Services ranks highest in prime retail credit satisfaction with an index score of 946 on a 1,000-point scale, performing particularly well in four factors driving dealer satisfaction: credit personnel; application/approval process; termination policy/service; and sales representative relationship. Alphera Financial Services (940) and Volkswagen Credit (938) follow BMW Financial Services in the rankings.

Retail Leasing
With a score of 942, BMW Financial Services ranks highest in retail leasing satisfaction for a fifth consecutive year, performing particularly well in credit personnel; termination policy/service; and application/approval process. Volkswagen Credit (934) and Mercedes-Benz Financial (924) follow in the segment.

Subprime Retail Credit
In the subprime retail credit segment, which is new to the 2008 study, BMW Financial Services ranks highest with a score of 966, performing well across all factors driving satisfaction. Volkswagen Credit follows with 943, and GMAC ranks third in the segment with 922.

Floor Planning
BMW Financial Services ranks highest in floor planning with a score of 963, performing well in all four of the factors that drive satisfaction. Volkswagen Credit follows closely in the rankings with 960 and Audi Financial Services ranks third in the segment with 940.

The 2008 Dealer Financing Satisfaction Study is based on responses from 4,770 dealer principals who were surveyed March through July 2008. Read Article

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StarSearch - 10/8/2008 12:27:05 PM

-12 Boost

tempted to say BMW ranks highest as it's used the most, haha!!

Man, Hyundai has some work to do.

reply to this comment

Kraut_god - 10/9/2008 12:48:11 PM

-4 Boost

their cars sure do suck but hey great financing!!!

Need4Speed - 10/8/2008 12:37:04 PM

+7 Boost

I can attest to that. Getting a loan through BMW Financial was quick, easy and the rate could not be beat.

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QuantumMatrix - 10/8/2008 1:27:57 PM

+10 Boost

Another Superior Rating for the Best Premium Automotive Maker: BMW

Congrats again..

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nybimmer - 10/8/2008 3:17:18 PM

+3 Boost

Anybody have any insight on who, the #2, "Alphera Financial Services" is? They seem to be based in Germany.

The most I could find out is that they are somehow affiliated with BMW Group - are they like GMAC is (or was) to GM?

reply to this comment

sector - 10/8/2008 10:33:14 PM

-9 Boost

BMW Financial = "Everybody's approved... come on in" :)

...come in broke, drive away in a bimmer...

reply to this comment

S4cabriofoxone - 10/9/2008 1:05:24 AMView My AgentSpace

+3 Boost

Interestingly enough, Mercedes-Benz and Audi are also in the top five.

reply to this comment

Teknik - 10/9/2008 2:58:29 AMView My AgentSpace

-6 Boost

BMW great financing = FUTURE SALES FAILURE

BMW builds trash, and people are figuring that out now.

reply to this comment

QuantumMatrix - 10/9/2008 8:17:53 AM

+5 Boost

Yeah right Teknik.. That is why it is one of the most prestigious companies in the world and the 3, 5 and 7 series is recommended by Consumer Reports and it has the highest resale values of any Premium Car Company.

Better start learning how to back up your lame comments with FACTS.

StarSearch - 10/9/2008 8:38:55 AM

-7 Boost

...and yet people like yourself/Star trash Consumer Reports when Lexus consistently ranks high, suddenly they are biased and also rate appliances so they're not true car aficionados.

QuantumMatrix - 10/9/2008 10:34:00 AM

+7 Boost

StarSearch=auto001=teknik,

You mean an unbiased, reputable, magazine that doesn't accept advertising $$$ from any company and has one of the most advanced automotive evaluation teams in the world is not noteworthy???

LMAO..

You and all of your alias on this site are a freakin' joke.

And for the record dipstick, I only have one profile QuantumMatrix.

I don't agree with Star, but I love the way he pushes you and all of your alias buttons.

You can tell from syntax and sentence structure who has different profiles and who doesn't.. If you had more than one brain synapse you might be able to figure out on your own that people have "Got your Number."

StarSearch - 10/9/2008 4:05:21 PM

-3 Boost

(sigh....)Buddy, you argue EXACTLY like Star, you literally copy what someone else says, then use it as YOUR argument or reason. Or someone will call you a name, and you'll reply using the same insult, zero creativity. I mean, now you try to act like "you don't really agree with Star"...YOU ARE STAR, YOU'RE NOT KIDDING ANYONE HERE!!!

You showed up out of nowhere as if you'd been here forever, when I and others called you out you acted like it was US that was creating new accounts. Admit it, because Star has been getting trashed here forever yet suddenly his same arguments get boosted now....when you sign up.

QuantumMatrix - 10/9/2008 7:30:07 PM

+4 Boost

StarrSearchauto001teknik,

I have been a member of this site for months unlike yourself, unless you count all of your other profile names.. Starr, auto001, teknik and now StarSearch..

How predictable are you.

Why don't you ask the moderator to do an IP address check and see for yourself who is who..

I bet you will leave this site in tears for being outed as the LOSER with multiple personality disorder.

Oh, and for you owning a 335 conv. LMAO... Give me a break.. No one on here believes that crap..

StarSearch - 10/10/2008 4:18:54 PM

-2 Boost

" have been a member of this site for months unlike yourself, unless you count all of your other profile names.. Starr, auto001, teknik and now StarSearch..
Why don't you ask the moderator to do an IP address check and see for yourself who is who.."

...actually I'm calling you out on it, YOU contact the moderator and ask whether I am ANY other poster here, then you can report it RIGHT HERE!

"...I bet you will leave this site in tears for being outed as the LOSER with multiple personality disorder."

See above, I'm waiting hotshot, but I'm guarenteeing you won't do anything, or will try to turn it around and make me do the legwork, as if I really care that you have multiple aliases. I just enjoy pointing it out.

"Oh, and for you owning a 335 conv. LMAO... Give me a break.. No one on here believes that crap.."

...ummm I DON'T. my wife does, and before that she had a 330CiC, I own the S8. (please don't make me explain what a "wife" is, or a female for that matter). Buddy, you act like I said Aston Martin, it's a 40-something thousand dollar car that alot of people can afford, yet you act like I'm bragging about it...wow.

QuantumMatrix - 10/10/2008 6:51:08 PM

+3 Boost

Whatever you say Starr....

I do enjoy good "FairyTales", so you have been entertaining in that area.

As much as you trash BMW it would be hard for anyone on this site to believe you would keep one. So you dug your own grave on that point.

Money was or is not the object, it is your comments that everyone find hard to believe.

You haven't pointed anything out other than the fact that you really are a douchebag nozzle..

BJS470 - 10/9/2008 3:18:11 PM

-1 Boost

WTF

reply to this comment

BJS470 - 10/9/2008 3:19:08 PM

-2 Boost

I had a bmw once, free maintainance is not so nice when the car has to be brought in multiple times a month!

reply to this comment

StarSearch - 10/9/2008 4:07:26 PM

-4 Boost

welcome to the club, apparently BMW values their warranty more than your time. Our 335 conv. has been in 5 times in 4 mos. now...should've learned.

Speedoholic - 10/9/2008 3:41:41 PMView My AgentSpace

+1 Boost

Another award for BMW ... Perfect Brand.

reply to this comment

BMWSLSMN - 10/9/2008 9:32:43 PM

+4 Boost

WOW is directed at auto001.

I think for your sake you should just somehow find a way to erase your post and never post again, because as much as I am biased to BMW I have never read something so STUPID!!!!!!!! Come in broke and drive away in a bimmer. LMAO. Come on in auto001 its the easiest way you'll ever get to drive a luxury vehicle.

Thank you S4 for your comments, just goes to show that the premium market, Merc and Audi included knows how to treat their customers. Maybe if auto001 had an asset bigger than the box he lives in we could get him approved too.

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