WESTLAKE VILLAGE, Calif. – J.D. Power and Associates last monthreleased its 2005 Consumer Financing Satisfaction StudyT, and amongthe findings the study showed the proportion of leases to loans hasincreased for the first time in five years. According to the studydata, the proportion of luxury buyers who leased their vehicleswith the assistance of the dealers increased nine percentage pointsfrom 2004 to 64%. Among non-luxury buyers, 22% leased theirvehicles – up from 18% in 2004. The marketing information servicesfirm offered that part of the reason leasing is becoming morepopular is because of rising interest rates. The average interestrate paid on loans among non-luxury vehicle buyers increased from4.2% in 2004 to 5% in 2005. Among luxury buyers, the averageinterest paid increased from 3.9% in 2004 to 4.5% in 2005. The samestudy also measured customer satisfaction with the vehiclefinancing process. Four factors were examined to determine customersatisfaction with an automotive finance provider: provideroffering, application/approval process, payment/billing process,and customer contact experience. The study found that 22% of luxurynew-vehicle buyers secure a loan without the assistance of thedealer – an increase of eight percentage points from 2004. J.D.Power and Associates Manager of Automotive Finance David Lo offeredthat, “The vehicle loan financing market is becoming even morecrowded, and as banks, credit unions and independents become moreaggressive with their direct-lending programs, captive providerswill be challenged more than ever to defend their turf and retaintheir customer base.”