In early July, RBC Automotive Finance partnered with Hyundai Auto Canada to provide subvented financing to its dealerships and to also help pinpoint Hyundai’s opportunity in the market.
This is just the latest move in banks’ diversifying and customizing their business with automakers. As automaker captive finance companies lost share, banks have taken on new roles, such as being exclusive or semi-exclusive lenders who are the sole source of automaker retail incentives.
RBC has doubled its relationships like these in the last year.
With Hyundai, RBC first focused on the basics: how to structure the subvention programs and at what cost.
“But we focused significantly on how we could leverage our organizational capabilities around understanding customer buying patterns, how customers transact, when customers may be more or less interested in a particular vehicle or model that Hyundai may be interested in selling down the road,” said Grant Simons, vice-president and head of RBC Automotive Finance.