Car dealers are doing everything they can to try to digitize the shopping and purchase experience for their customers. But a new study from J.D. Power found that their lenders aren’t keeping pace with the digital experiences provided by other industries.
The study examined customer satisfaction with auto finance websites and apps used to manage auto loans and leases, and found that only 22% of customers are highly satisfied with the digital experience provided by their lender.
The study found the average customer satisfaction score for auto finance websites is 643 (on a 1,000-point scale) and the average score for mobile apps is 659.
The study compared the consumer feedback from using similar lending platforms in other industries such as retirement plan administrators, property and casualty (P&C) insurers and wealth management firms who have made more progress managing the transition by delivering digital solutions.
The auto lender scores of 643 are lower than average overall satisfaction score of 656 for retirement plan websites; 728 for retirement plan apps; 719 for P&C insurance websites; 716 for P&C insurance mobile apps; 704 for wealth management websites and 738 for wealth management apps.
“Strong digital engagement sustains self-service engagement, which is exactly what auto lenders need to do to increase profitability by reducing the cost to serve and retain customers in this challenging economic environment,” said Patrick Roosenberg, senior director of automotive finance intelligence at J.D. Power in a news release announcing the study results.
“Among customers who give their lenders top ratings for digital enablement, 95% say they ‘definitely will’ return to the lender’s website or app to manage their account. That percentage falls to just 60% when customers give their lenders low marks for digital enablement.”
The study evaluated customer satisfaction with auto finance websites and apps used to manage their accounts based on four criteria (in order of importance): information/content; navigation; visual appeal; and speed. The study is based on responses from 3,876 automotive finance customers who used their lender’s desktop website or mobile app. It was fielded in September-October 2023.
Automotive finance companies included in the study are (in alphabetical order):
- Ally Financial
- Bank of America
- Capital One Auto Finance
- Chase Automotive Finance
- Ford Credit
- GM Financial
- Honda Financial Services
- Hyundai Motor Finance
- Kia Finance America
- NMAC
- Santander Auto Finance
- Toyota Financial Services
- Wells Fargo Auto
