The Loyalty Lag

Seems that people are less inclined to stick with a brand than they were a year ago. . . .

By Gary S. Vasilash

While it may seem like a long while ago, it was just a few years back, in 2021, during the lingering COVID crisis, made all the more trying by the semiconductor crisis, when people were buying vehicles from the transporters that arrived at dealer lots.

This was an issue of wanting a vehicle and probably not doing a whole lot of—if any—due diligence vis-à-vis the attributes of the brand or model.

Clearly, brand loyalty was not top of mind for most of those consumers. A new set of wheels was, and they were willing to pay a premium if that’s what it took. (And it did.)

However, since then things have more or less balanced such that consumers not only have choice, but they don’t have to rush into a purchase. (They still need a lot of money, though that’s a separate issue.)

So this is a case where they are probably more rational in their decision making.

If you have a good experience with a vehicle from a particular company you are likely inclined to stay within that company. Brand loyalty.

Having a loyal customer base makes it easier for OEMs to move product than if they have to convince many in a market of their attributes.

From the consumers’ point-of-view, says Tyson Jominy, senior vice president of data & analytics at J.D. Power, “Brand loyalty matters to vehicle buyers because it’s often associated with higher residual values, making vehicles from trusted brands a more financially sound choice over time.”

But there can be reasons why someone might switch from one brand to another, like the availability of the particular type of vehicle being looked for (e.g., if you’re looking for a car, then unless you want a Mustang you are out of luck at your Ford dealer because all of the other cars have been discontinued).

J.D. Power just released its 2025 U.S. Automotive Brand Loyalty Study. It indicates that brand loyalty is, in effect, under water.

Specifically, according to Jominy, “Brand loyalty averages 49% across all nameplates and segments in this year’s study.”

Or, 51% of consumers will buy something else.

What is somewhat surprising is the not-exceedingly-high levels of loyalty.

That is, the number-one brand in the premium vehicle category is Porsche, with 58.2% loyalty.

For premium SUVs, the leading brand is Lexus, with 57.4%.

In the mass market, it is Toyota at 62%, which at least gets out of the 50%s, which is more positive.

And for mass market SUVs it is Honda, also at 62%. (It is worth noting that in the overall mass market Honda, at 55.5%, is second to Toyota, so it evidently has above-average brand loyalty.)

When it comes to trucks, for the fourth time in as many years, Ford is first, at an impressive 66.6% loyalty rate. (And to be fair, noting Honda’s performance, second in loyalty in the truck category is Toyota, at 61.2%.)

But back to that overall 49%.

Last year’s study had the overall loyalty at 51%. A two-point decline may not seem like a big deal, but (1) it is directionally not good and (2) it shows that more consumers are going to follow something other than tradition.

Neither is good for OEMs.

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Note: J.D. Power conducted the study based on transaction data from September 2024 through August 2025 and included all model years traded in for a new vehicle.