Car buyers have remained loyal to their brand of choice — but a new threat to that bond could soon emerge as electric vehicles take center stage, according to the J.D. Power 2022 U.S. Automotive Brand Loyalty Study.
The study found that as supply chain issues constrained the inventory of new cars, drivers who bought a new vehicle tended to stick with the same brand as their previous car.
In a summary of the findings, Tyson Jominy, vice president of data and analytics at J.D. Power, says:
“The issue of tight supply chain and lower-than-normal production could have been quite disruptive to loyalty, but the highest-ranking brands excelled by staying focused on keeping owners in the brand.”
However, Jominy says that the rush to move car owners to embrace electric vehicles could eventually disrupt brand loyalty for car manufacturers “sitting on the sidelines or not moving quickly enough.”
J.D. Power examined data to determine whether an owner purchased the same brand of car when trading in an existing vehicle. It then ranked brands for customer loyalty based on the percentage of vehicle owners who chose the same brand when buying their next vehicle.
It found that one brand — Toyota — was especially likely to generate warm feelings among drivers. The brands that generate the most loyalty are:
Mass market car brands
- Toyota: 62.2% loyalty rate
- Kia: 54.1%
Mass market SUV brands
- Toyota: 63.6%
- Subaru: 62.6%
Premium car brands
- Porsche: 57.4%
- Genesis: 54.6%
Premium SUV brands
- BMW: 58.6%
- Lexus: 56.4%
- Ford: 63.8%
- Toyota: 58.7%
The study was based on transaction data from September 2021 through August 2022. It includes all model years traded in during that time.
How to save on your next car
Buying a car is not cheap, but a little extra knowledge can help you can save on your next purchase.
For example, today’s cars are built to last for 200,000 miles or more. So don’t be afraid to purchase a car with mileage exceeding five digits. As we wrote in “8 Tips for Buying Your Next Car for Less“:
“For many models, the price starts dropping through the floor once the mileage goes north of 100,000. By saying no to these high-mileage cars, you’re rejecting a lot of good deals.”
For more on saving, check out:
When saving for a short-term purchase — such as a car — it typically makes sense to park your money in a savings account. So stop by Money Talks News’ Solutions Center to find a savings account with the best interest rate.