Toyota, Subaru, and American Honda customers are most loyal to the brand, according to a new study examining the rate at which customers trade in vehicles for one from the same segment, manufacturer, brand or model.
Edmunds analysts compiled the 2018 Edmunds Trade-In Loyalty Report from more than 13.9 million vehicle transactions between 2007 and 2017, examining the percentages of vehicles traded in to purchase a new vehicle. Lease returns were excluded from the study.
Automakers with longstanding reputations for reliability offer a wide array of SUVs and leverage “emotional design” to bring customers back, the report said. Last year, 75 percent of SUV owners returned their vehicle for another SUV — compared with 57 percent of car owners trading in that car for a new one. Seventy-four percent of truck trade-ins went toward the purchase of another truck in 2017, according to Edmunds.
Toyota and Honda each hold a reputation for quality. Though the reputation was “built on the backs of passenger cars, it has successfully bled over and boosted loyalty for their SUV offerings as well,” the report said. Sixty-three percent of Toyota customers returned to the brand, compared with 58 percent in 2007. Honda customers came back 60 percent of the time in 2017, five percentage points more than 10 years prior.
Subaru’s success stems from strategic product launches — switching to a vehicle lineup of utility vehicles launched customer loyalty to 61 percent last year, up from 45 percent in 2007.
Read the full article at www.autonews.com.
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