Fueled by zero percent financing and accelerated auto sales, dealer satisfaction with automotive finance providers is at a record high, according to the J.D. Power and Associates 2002 Dealer Financing Satisfaction Study(SM) released July 30.

The study finds that 73 percent of dealer principals are satisfied with their financial providers, tying the previous record high set in the 1995 study.

"This is a great example of finance providers and dealers working together in challenging times," said David McKay, senior director of auto finance for J.D. Power and Associates. "Dealers have an increased number of people wanting to take advantage of aggressive incentives. That's added pressure on auto manufacturer finance companies, also known as captives, who are working hard to process applications to help the dealers sell vehicles."

Captives lead the way in dealer satisfaction, with 86 percent of dealers indicating they are "very" or "somewhat" satisfied with their financial provider -- the highest rating in the nine-year history of the study.

"The captives were the first to offer zero percent financing, which helps get people into the dealerships, and the dealers love that," McKay said. "What also helps captives fare so well is that they are generally quicker at processing applications, they're more accessible and responsive to dealers and they have more consistent and predictable credit policies."

Among the other finance provider segments, dealer satisfaction with banks increased the most, to 75 percent, compared with 73 percent in the 2001 study. Satisfaction with independents and credit unions also increased in 2002.

Based on responses from more than 5,700 dealer principals, the study measures satisfaction levels with finance providers in four areas: prime retail credit, nonprime retail credit, retail leasing and floor planning.

Audi Financial Services ranks highest in both dealer satisfaction in the prime retail credit satisfaction and retail leasing. VW Credit ranks highest in floor planning, which is associated with the dealer's ability to finance and insure their dealer inventory.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services firm operating in business sectors including market research, forecasting, consulting, training and customer satisfaction.

The firm's quality and satisfaction measurements are based on responses from millions of consumers annually.