J.D. Power is sharing the results of its latest study that gauges consumer satisfaction with auto financing. Lincoln and Ford ranked highest in their segments. The 2024 U.S. Consumer Financing Satisfaction Study surveyed more than 11,000 consumers.
Ford had this to say about its top honors in both segments: “Our team is focused on providing our customers with the best financing experience in the business, and we’re thrilled that customers agree,” said Ford Credit CEO Cathy O’Callaghan. “Whether it’s financing a new vehicle or support during tough times such as natural disasters, every day is another opportunity for our team to provide our customers with the ease, clarity and flexibility that makes financing with Ford Credit or Lincoln AFS the right choice.”
Overall, the study found that many auto loan customers are coming away from the lending process with a dose of sticker shock. That's thanks to average new-vehicle loan interest rates that are still hovering near 20-year highs - and an average new-vehicle retail transaction price now at $44,467.
Researchers go on to say the challenges of the current marketplace are being compounded by a deterioration in consumer financial health. Specifically, the study finds that among mass market auto loan customers, the number of those characterized as financially vulnerable has increased 11 percentage points since 2021 while the number of financially healthy customers has decreased 13 percentage points. J.D. Power says within the group of financially vulnerable customers, just a single percent of them say they can cover six months of living expenses.
“Auto lenders really need to tailor their offerings for the realities of the current market and recognize that a large portion of their customers may face some very real challenges managing their finances," said Patrick Roosenberg, senior director of automotive finance intelligence at J.D. Power. "Lenders need to ensure that their digital bill-pay tools encompass a wide range of options, such as extensions, due date changes, personalized financial planning/budgeting tools and one-on-one advice to help consumers plan for the future."
Premium Lenders
Mass Market Lenders
J.D. Power says its U.S. Consumer Financing Satisfaction Study was redesigned for 2024 so scores aren't comparable year over year with previous studies. The study measures overall auto financing customer satisfaction across eight core dimensions (in order of importance): level of trust with provider; loan/lease offering met needs; experience managing my loan/lease; keeps me informed about my loan/lease; experience obtaining loan/lease; makes it easy to do business with; digital channels; and people. This year’s study was fielded from November 2023 through August 2024 and is based on responses from 11,071 customers who financed a new or used vehicle through a loan or lease within the past three years.
For more information about the study, visit J.D. Power here.
Photo: Lincoln.