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Dealers Wary of AI in Auto Finance

Poll shows growing aversion to technology’s accelerating part in process.

August 12, 2024
Dealers Wary of AI in Auto Finance

More dealer finance teams report disliking AI's influence in auto finance processes, including what they perceive as a lack of creative freedom.

Credit:

Pixabay/Raten Kauf

1 min to read


Dealer finance providers are ranked for dealership satisfaction in a newly released report that also finds dealers dislike the growing role of artificial intelligence in auto lending.

The J.D. Power U.S. Dealer Financing Satisfaction Study found more dealership finance offices are uneasy about AI in the space, up from 50% to 55% year-over-year. They most cite erosion of person-to-person communication, lack of creative freedom, and fear of job loss.

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“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 Senior Director of Automotive Finance Intelligence Patrick Roosenburg in a press release on the findings.

“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.”

Poll respondents ranked the following providers as the best:

Captive Premium – Prime

Jaguar Land Rover Financial Group

Captive – Mass Market – Prime

Southeast Toyota Finance

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Noncaptive National – Prime

TD Auto Finance

Noncaptive Regional – Prime

Huntington National Bank

Noncaptive – Subprime

Ally Financial

 

Originally posted on Auto Dealer Today

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