Automotive Brand Loyalty Report w/ Reynolds

The Gist

• Toyota remains king of customer retention at 61.9%, with Ferrari and Lexus rounding out the top three.

• While the nationwide average retention rate barely moved (43.9%, up 0.2% from 2023), 24 brands lost ground.

• Only six brands kept more than half of their customers coming back.

• Domestic brands are seeing more customer defection than Asian manufacturers, and incentives are shaping buyer behavior more than brand loyalty.

• Trucks? They’re still a “buy once, buy forever” club, with 74.1% of truck owners sticking with trucks—the highest in five years.

Customer Loyalty: A Game of Inches (and Incentives)

If you’re in the business of selling cars, here’s the million-dollar question: are your customers coming back, or are they cheating on you with another brand? Reynold’s latest report on brand retention and defection shows that while overall loyalty is stable, individual brands are seeing some turbulence.

Toyota takes the gold for the most loyal customers (61.9% retention), proving once again that reliability and consistency keep buyers coming back. Ferrari (58.1%) and Lexus (55.8%) follow close behind, reinforcing the idea that performance and luxury have their own dedicated fanbases.

But let’s not sugarcoat it—24 of 38 brands actually lost retention year-over-year. That’s a lot of wandering eyes in the market. With inventory levels up and manufacturers throwing money at incentives, buyers are less concerned with loyalty and more focused on getting the best deal.

The Winners & The Not-So-Winners

✔️ The Most Loyal Customers:

• Toyota (61.9%) – Steady as ever.

• Ferrari (58.1%) – Even at six figures, some things never change.

• Lexus (55.8%) – The most consistent mainstream luxury brand.

• Honda (53.6%) – A solid second place in the everyday car wars.

❌ The Biggest Drop-Offs:

• Alfa Romeo (19.5%) – A tough year for the Italian stallion.

• Mitsubishi (16.5%) – Continues to struggle in keeping customers around.

• Chrysler (13.8%) & Dodge (13.7%) – Oof.

• Jaguar (12.6%) & Fiat (3.8%) – It’s bleak.

Where Are Customers Running To? 

When a customer trades in a Nissan, Honda, or Chevrolet, guess who’s often waiting with open arms? Toyota.

• Acura’s biggest conquest source? Honda owners (22.2%)

• Cadillac keeps the family ties strong, pulling in Chevy and GMC defectors.

• Tesla’s used vehicles are getting snatched up, showing that interest in the brand remains strong in the pre-owned market.

• Premium brands love stealing from each other—Mercedes, BMW, and Audi continue their game of musical chairs.

Truck Buyers = Built Different 

Unlike car buyers, truck owners are a committed bunch—once a truck, always a truck.

• 74.1% of truck owners bought another truck in 2024, up from 72.5% in 2023.

• Chevrolet/GMC leads the truck loyalty pack with 59.8% retention, while Ford holds onto 47.7% of its truck owners.

• Honda and Hyundai trucks? Not as lucky. Their retention is dropping, making them prime targets for conquest deals.

ASOTU’s Final Thoughts

Smart Dealers, Smarter Moves 🚨 Retention isn’t guaranteed—fight for it. You already know this, but let’s say it louder for the manufacturers in the back: customers aren’t glued to brands like they used to be. If you’re not actively engaging them, they’re fair game for someone else who is.

🎯 Conquesting is the name of the game. If 24 brands are losing retention, that’s a whole lot of opportunity for dealers who know how to play their cards right. Dig into the data, figure out where those defectors are landing, and get in front of them first.

💰 Trucks = Long-Term Profit. If you sell trucks, congratulations—you’re in one of the most loyal segments in the industry. But even there, cracks are forming. Smart dealers will keep the relationship going beyond the sale with service, community ties, and a reason to return.

🚀 You’re Already Ahead—Stay There. You’re not new to this. You’re watching the trends, reading the room, and making moves before the competition even sees them coming. Keep at it. The brands that win in 2025 won’t be the ones hoping customers stay—they’ll be the ones giving them a reason to.

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