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J.D. Power and Associates Reports: BMW Financial Services, Ford Credit and Hyundai...

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J.D. Power and Associates Reports: BMW Financial Services, Ford Credit and Hyundai... - Auto News from December 04, 2008

WESTLAKE VILLAGE, Calif., Dec. 4 /PRNewswire/ -- BMW Financial Services, Ford Credit and Hyundai Motor Finance Company each rank highest in their respective segments in satisfying customers with the new-vehicle financing process, according to the J.D. Power and Associates 2008 Consumer Financing Satisfaction StudySM released today.

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The study, now in its 13th year, measures customer satisfaction with the new-vehicle financing process and examines the intentions, priorities, influences and preferences of new-vehicle buyers and lessees. Four factors are examined to determine customer satisfaction with automotive finance providers: application approval process; customer contact; payment/billing process; and provider offering.

Luxury Loan Segment Rankings

BMW Financial Services ranks highest in the luxury loan segment with a score of 860 on a 1,000-point scale, performing particularly well in three factors driving satisfaction: application approval process; finance provider offering; and payment/billing process. GMAC (798) and Honda Financial Services (792) follow BMW Financial Services in the segment.

Luxury Lease Segment Rankings

For a second consecutive year, BMW Financial Services (786) ranks highest in the luxury lease segment, performing particularly well in payment/billing process. Ford Credit follows BMW Financial Services with 785, and Honda Financial Services ranks third with 781.

Non-Luxury Loan Segment Rankings

Performing well in finance provider offering, Hyundai Motor Finance Company ranks highest among non-luxury loan providers with 795. Ford Credit (786) and Mazda American Credit (780) follow in the segment.

Non-Luxury Lease Segment Rankings

Ford Credit ranks highest among non-luxury lease providers with 787, performing particularly well in the application approval process. Volkswagen Credit (780) and Honda Financial Services (772) follow Ford Credit in the rankings.

Other Study Findings

The study finds 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. Among customers who arrive at the dealership with a lender preference and use that lender to finance their new vehicle, overall satisfaction averages 837. In addition, 48 percent of these customers indicate that they "definitely will" use the lender again and 50 percent say they "definitely will" recommend the lender to others. In contrast, satisfaction averages 746 among customers who intend to have the dealer work out financing arrangements for them. Only 22 percent of these customers say they "definitely will" use the lender again and 23 percent say they "definitely will" recommend the lender.

"Because customers who are more involved with the finance provider selection process tend to be more satisfied, it's essential for lenders to proactively communicate with existing customers and reach out to potential new customers," said Rich Howse, senior director of the automotive finance practice at J.D. Power and Associates. "Satisfying customers contributes to increased levels of loyalty and advocacy--both of which can have a strong financial impact--and is particularly important amid the current uncertain economic environment."

The study also finds that Internet use among new-vehicle buyers to research financing options has increased to 64 percent of luxury customers and 55 percent of non-luxury customers. More than 30 percent of luxury-vehicle owners report that Internet research has a considerable impact on their finance provider selection, while 26 percent of non-luxury-vehicle owners say the same.

The 2008 Consumer Financing Satisfaction Study is based on responses from 27,964 consumers who financed their new vehicle during the past five to seven months. The study was fielded between May and September 2008.

Finance Provider Satisfaction Index Ranking

Luxury Loan Segment

(Based on a 1,000-point scale)

                                       Index         JDPower.com Power
    Lender                             Score          Circle Ratings
    ------                            -------          For Consumers
                                                       -------------
    BMW Financial Services              860                  5

    GMAC                                798                  4
    Honda Financial Services            792                  4
    Mercedes-Benz Financial             791                  4

    Infiniti Financial Services         777                  3
    Luxury Loan Segment Average         776                  3
    Lexus Financial Services            774                  3

    Chase Auto Finance                  739                  2
    Bank of America                     726                  2

Included in the study but not ranked due to small sample size are: Audi Financial Services, Ford Credit and US Bank.

Luxury Lease Segment

(Based on a 1,000-point scale)

                                       Index         JDPower.com Power
    Lender                             Score          Circle Ratings
    ------                            -------          For Consumers
                                                       -------------
    BMW Financial Services              786                  5
    Ford Credit                         785                  5
    Honda Financial Services            781                  5

    Lexus Financial Services            778                  4

    Luxury Lease Segment Average        767                  3
    Mercedes-Benz Financial             765                  3
    Audi Financial Services             764                  3
    GMAC                                762                  3

    Infiniti Financial Services         740                  2
    Volvo Car Finance                   734                  2

Included in the study but not ranked due to small sample size are: Land Rover Capital Group, Porsche Financial Services and US Bank.

Non-Luxury Loan Segment

(Based on a 1,000-point scale)

                                       Index         JDPower.com Power
    Lender                             Score          Circle Ratings
    ------                            -------          For Consumers
                                                       -------------
    Hyundai Motor Finance
     Company                            795                  5
    Ford Credit                         786                  5

    Mazda American Credit               780                  4
    GMAC                                769                  4
    Honda Financial Services            769                  4
    Volkswagen Credit                   765                  4
    Chrysler Financial                  761                  4
    Toyota Financial Services           755                  4

    Nissan Motor Acceptance             749                  3
    Non-Luxury Loan Segment
     Average                            739                  3
    Mitsubishi Motors Credit            727                  3
    Subaru Motors Finance               725                  3
    US Bank                             718                  3

    Regions                             708                  2
    Bank of America                     706                  2
    Wachovia Dealer Services            705                  2
    Branch Banking and Trust            697                  2
    Chase Auto Finance                  696                  2
    Harris Bank                         695                  2
    Citizens/Charter One Auto
     Finance                            683                  2
    CitiFinancial Auto                  677                  2
    SunTrust Bank                       673                  2
    Capital One Auto Finance            668                  2
    Sovereign Bank                      668                  2
    Huntington National Bank            659                  2
    Fifth Third Bank                    651                  2

Included in the study but not ranked due to small sample size are: AmeriCredit/Bayview, Bank of the West, Compass Bank, Drive Financial Services, Fidelity, HSBC Auto Finance, Kia Motor Finance, M&T Bank, National Auto Finance Company, PNC Bank, Security Service Federal Credit Union, State Farm Bank, Suzuki Financial Services, TD Banknorth, Valley National Bank, Wells Fargo Auto Finance, Wilmington Trust and World Omni.

Non-Luxury Lease Segment

(Based on a 1,000-point scale)

                                       Index         JDPower.com Power
    Lender                             Score          Circle Ratings
    ------                            -------          For Consumers
                                                       -------------
    Ford Credit                         787                  5
    Volkswagen Credit                   780                  5

    Honda Financial Services            772                  4
    GMAC                                771                  4

    Toyota Financial Services           753                  3
    Non-Luxury Lease Segment
     Average                            752                  3
    Chrysler Financial                  742                  3

    Mazda American Credit               729                  2
    Nissan Motor Acceptance             717                  2
    Subaru Motors Finance               678                  2

Included in the study but not ranked due to small sample size is Mitsubishi Motors Credit.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com.

J.D. Power and Associates Media Relations Contacts:

John Tews; Troy, Mich.; (248) 312-4119; john.tews@jdpa.com

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; syvetril.perryman@jdpa.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

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