Consumers in the auto space continue to buy what they already have, according to the J.D. Power 2024 U.S. Automotive Brand Loyalty Study. Despite increased incentives and inventory issues, new vehicle buyers in larger numbers this year are sticking to the brand they currently own.
Toyota was tops in loyalty among mass market brand car owners for a third straight year.
Toyota, Honda and Lexus expanded their grip on customers in the last year, according to the study.
“Amid ongoing inventory shortages, the most loyal customers actually stayed out of the market if they were unable to get their desired vehicle,” said Tyson Jominy, vice president of data & analytics at J.D. Power.
“Now that inventory levels are recovering, customers are coming back. In particular, Toyota and Honda are benefitting from increased availability of hybrid vehicles, with Honda owners swapping out their gas-powered vehicles for hybrids at nearly triple the rate of the industry average.
“Lexus is also benefitting from strengthened residual values, which are helping drive loyalty for the brand despite premium brands as a whole experiencing a plateau this year.”
• Honda ranks highest among mass market brand SUV owners with a 64.2% loyalty rate.
Big winners
There are no real surprises in this year’s results as Toyota, Honda, Lexus and Ford retained their top spots in their respective categories.
- Porsche ranks highest among premium brand car owners for a third consecutive year, with a 57.5% loyalty rate. Mercedes-Benz (49%) ranks second.
- Lexus ranks highest among premium brand SUV owners with a 60.2% loyalty rate. BMW (55.8%) ranks second.
- Toyota ranks highest among mass market brand car owners for a third consecutive year, with a 62.5% loyalty rate. Honda (58.8%) ranks second.
- Honda ranks highest among mass market brand SUV owners with a 64.2% loyalty rate. Subaru (62.6%) ranks second.
Ford ranks highest among truck owners for a third consecutive year, with a 65.1% loyalty rate — the highest loyalty rate in the study. Toyota (60.8%) ranks second. Ford’s finish at the top isn’t a surprise given it’s the bestselling full-size pickup each year. In fact, F-Series sales totaled 199,463 in Q2, up 30% from Q1, the company reported.
Additionally, its small pickup, Maverick, is a strong performer as well. Maverick and Maverick Hybrid — the No. 1 selling hybrid truck in the U.S. — set new first half records. Total truck sales (including pickups and vans) of 308,920 were up 5% compared to 2023, representing Ford’s best Q2 truck sales performance since 2019.
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How it works
The study, now in its sixth year, uses data from the Power Information Network to calculate whether an owner purchased the same brand after trading in an existing vehicle on a new vehicle. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when trading in or purchasing their next vehicle.
Only sales at new-vehicle franchised dealers qualify. The study includes brand loyalty across five segments: premium car; premium SUV; mass market car; mass market SUV; and truck.
The 2024 study calculations are based on transaction data from September 2023 through August 2024 and include all model years traded in.
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