More drivers love the vehicles they’re in.
U.S. consumer automotive brand loyalty increased in 2023 according to LexisNexis Risk Solutions, a provider of data and analytics for the insurance and automotive industries. Through a methodology-based automotive brand loyalty study, LexisNexis Risk Solutions offers automakers (OEMs) a comprehensive view about a vehicle owner’s repurchase behavior with a brand they currently own.
LexisNexis Risk Solutions analyzed vehicles and owners that make up a garage. In the U.S., 107 million garages were used to calculate automotive brand loyalty from January-December 2023. The study focused on vehicle purchases in 2023 and vehicles currently owned.
It found that new vehicle buyers in 2023 stayed loyal to the new car brands they own at a rate of 51.3%, a 1.6% increase from 49.7% in 2022.
Tesla led in brand loyalty with a rate of 60.7%, almost two percentage points up from 59.0% in the prior year.
“We found that seven additional brands also had loyalty rates above the industry average,” said Mike Yakima, product principal, U.S. Connected Car, LexisNexis Risk Solutions. “The brands above the industry average are retaining more customers than they are losing. Their retention strategies are working to engage current owners in the brand as they look to grow market share.”
Trade-in vehicles were associated with approximately 62.3% of new vehicle purchases, and 26% of garages added a vehicle in 2023. The remaining 11% of the new vehicle purchases were made by owners that did not have a vehicle in the garage, representing either first-time buyers or people who have gone an extended period without a vehicle.
Lastly, drivers who currently own a used vehicle and bought a used vehicle tended not to repurchase the same brand again, with their brand loyalty rate at 21.1%, representing a 1% increase from last year.
Used vehicle owners buying new vehicles stayed with their brands 26.1% of the time.
“Automakers can further build brand loyalty by connecting with used car owners and offering services to them as if they were the original owners,” said Dave Nemtuda, head of OEM products, U.S. Connected Car, LexisNexis Risk Solutions. “That connection could be the shift that automakers need to see an uptick in brand loyalty and customer engagement with their brand on many levels.”
