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Recapturing Lease Customers Will Be Critical as Auto Dealers and Lenders Navigate Downturn, J.D. Power FindsNew-vehicle leases accounted for 31% of the new retail vehicle market in 2019, while lease transactions this year account for 52% of captive lenders' new retail business. These percentages underscore how important it is for dealers and lenders to work together to retain lease customers as the market heads into a downturn. According to the J.D. Power 2020 U.S. End of Lease Satisfaction Study,SM released today, effective communication and marketing efforts that factor in key decision-making timeframes can play a significant role in improving lease retention rates. "Retaining lease customers is crucial for dealer and lender profitability as they navigate a constricting market and economic downturn," said Patrick Roosenberg, director of automotive finance intelligence at J.D. Power. "Communication through customer-preferred channels is paramount as dealerships temporarily close and lease customers navigate an unprecedented event, uncertain of their available options to defer payments, extend or terminate their leases. "The market will recover and competition from banks and captive lenders will be fierce for the 1.8 million returning lease customers scheduled to turn in their vehicles in the next five months. Aggressive retail programs, some of which have already launched with 0% financing and deferred payments up to 120 days on extended term loans, will create more obstacles for lease retention." Following are key findings of the 2020 study:
Mass market lenders included in the study are Ally, Chrysler Capital, Ford (News - Alert) Credit, GM Financial, Honda Financial Services, Hyundai Motor Finance, Kia Motors Finance, Mazda Capital Services, MINI Financial Services, NMAC, SE Toyota, Subaru Motors Finance, Toyota Financial Services, US Bank and VW Credit. Luxury lenders included in the study are Acura Financial Services, Audi Financial Services, BMW Financial Services, GM Financial, Infiniti Financial Services, Jaguar Land Rover Financial Group, Lexus Financial Services, Lincoln Automotive Financial Services, Mercedes-Benz Financial Services, Porsche Financial Services, US Bank and Volvo Car Financial Services. To request more information about the 2020 U.S. End of Lease Satisfaction Study, visit https://share.hsforms.com/4239280/b4ac9ade-3f7f-4fa3-a4f7-3811cb80176e. To view the online press release, please visit http://www.jdpower.com/pr-id/2020073. J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, Asia Pacific and Europe. View source version on businesswire.com: https://www.businesswire.com/news/home/20200402005069/en/ |