Dealer’s satisfaction with manufacturer finance programmes grew slightly between winter 2014 and summer 2015, from 7.3 out of 10 to 7.4, according to the National Franchised Dealers Association’s (NFDA) 2015 Summer Dealer Attitude Survey.
There were contrasting opinions from various brands, however. Mercedes dealers were by far the most satisfied dealer group, with an average rating of 9.3 out of ten. This was up from 8.1 in winter 2015.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Toyota and Lexus came in joint second at 8.7 out of ten, up from 7.8 and 6.8 in winter 2015, respectively.
BMW, which revealed its new dealer remuneration plan towards the end of 2015, also scored well, with dealer satisfaction up from 7.3 to 8.4.
Volkswagen and Vauxhall both saw declines in dealer satisfaction, from 7.5 and 7.7, respectively, down to 7.0.
Mitsubishi dealers retained their position as the least satisfied dealers, with an average satisfaction score of 5.0 out of ten, up only slightly from their winter 2014 score of 4.8.
When asked how satisfied they were with the reasonableness of the finance penetration and renewal targets set, the average answer rose slightly from 7.0 in winter 2014 to 7.1 in summer 2015. Again, Mercedes dealers were the most satisfied in this category, at 9.1, followed by Toyota and Lexus dealers at 8.6 each.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataWhen asked how satisfied they were with the reasonableness of the underwriting stance and customer service aspects of the finance programme, the answer remained at 7.3 out of ten. Once again, Mercedes dealers were the most satisfied, followed by Toyota and Lexus dealers.
The final finance related question, on the earnings potential of the finance programmes, was the only one to see a small drop – from 6.7 in winter 2014 to 6.6 in summer 2015, and again Mercedes dealers came out on top, followed by Toyota and Lexus dealers.
While finance satisfaction rates remained relatively stable, the NFDA highlighted a number of areas of concern coming out of the survey.
Sue Robinson, director of the NFDA, said: "The relationship between car dealers and car manufacturers recorded an average score of 6.2 – 0.3 points lower than the winter 2015 survey, suggesting that a number of dealer networks are slightly less satisfied with their relationship with their manufacturer.
"Of particular concern are the results for questions that involve profitability, targets and pressure to register vehicles. Answers to these questions showed that even in a strong market, some manufacturers are still pushing registration growth at the expense of dealer margin."
One area of concern was pre-registrations. When asked how satisfied they were with the manufacturer’s inducement to self-register cars, the average response was 5.0, down from 5.4 in the winter 2014 survey, and from 5.7 in the summer 2014 survey.
The NFDA said: "A score of 5.0 would suggest many dealers are not satisfied with the pressure manufacturers are exerting on dealers to register vehicles."
Of the 28 franchise networks to take part in the survey, 21 saw dealer satisfaction on the topic fall.
The NFDA added: "The results of this question suggest dealers are very concerned about pressure to pre-register exerted on them by manufacturers. This is compounded by the fact that the scores continue to fall showing the problem is worsening rather than improving.
The result featured 1573 responses from a total dealer network of 4270, giving a 37% response rate.
