Auto Dealers Grow Increasingly Uncomfortable with Use of AI in Credit Decision-Making, J.D. Power Finds

Automotive Finance Teams Fear Loss of Human Interaction, Ability to Think “Outside the Box”

Automotive lending has been quickly transformed by artificial intelligence (AI) with the promise of faster, more accurate and more cost-effective credit decisions and approval processes. Auto dealers are not exactly ready to embrace the new technology. According to the J.D. Power 2024 U.S. Dealer Financing Satisfaction Study,^SM released today, 55% of dealership finance teams say they are uncomfortable with AI, up from 50% in 2023. Their top concerns with the technology center on the loss of human interaction, inability to develop creative solutions and fear of job loss.

“There is a growing sense of concern among dealer finance teams that the increased prevalence of AI in the lending process will limit their ability to find creative solutions, forge key relationships with lenders and effectively close deals,” said Patrick Roosenberg, senior director of automotive finance intelligence at J.D. Power. “It is important to note, however, that this is not the first time that technology has upset the status quo. Lenders need to leverage past experiences and lessons learned in previous technological transformations, such as the introduction of digital and modern retailing technologies. These all ultimately improved the lending process for dealers who embraced the change and learned how to leverage technology to their advantage.”

Study Rankings

Captive Premium—Prime

Jaguar Land Rover Financial Group ranks highest in overall dealer satisfaction with a score of 855, followed by Maserati Capital USA (844) and Mercedes-Benz Financial Services (839). This is the first year this segment is award eligible since 2018.

Captive Mass Market—Prime

Southeast Toyota Finance ranks highest in overall dealer satisfaction for a second consecutive year with a score of 889, followed by Subaru Motors Finance (810) and Ford Credit (785).

Non-Captive National—Prime

TD Auto Finance ranks highest in overall dealer satisfaction for a fifth consecutive year, with a score of 886. Ally Financial (829) ranks second and Chase Automotive Finance (776) ranks third.

Non-Captive Regional—Prime

Huntington National Bank ranks highest in overall dealer satisfaction for a second consecutive year, with a score of 747. Security Service Federal CU (708) ranks second and Golden 1 Credit Union (703) ranks third.

Non-Captive Sub-Prime

Ally Financial ranks highest in overall dealer satisfaction for a fourth consecutive year, with a score of 821. Chase Automotive Finance (777) ranks second and Capital One Auto Finance (722) ranks third.

See the rank chart for each segment at http://www.jdpower.com/pr-id/2024080.

The 2024 U.S. Dealer Financing Satisfaction Study is based on responses from 4,472 auto dealer financial professionals. The study, which was fielded in from March through May 2024, measures auto dealer satisfaction in five segments of lenders: captive premium—prime; captive mass market—prime; non-captive national—prime; non-captive regional—prime and non-captive sub-prime.

For more information about the U.S. Dealer Financing Satisfaction Study, visit https://www.jdpower.com/business/resource/us-dealer-financing-satisfaction-study.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto-shopping tool can be found at JDPower.com.

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