2023 Study Reveals Rising Brand Loyalty Among U.S. Car Buyers
LexisNexis Risk Solutions, a data and analytics firm for the insurance and automotive industries, revealed an increase in automotive brand loyalty among U.S. consumers in 2023. The company's automotive brand loyalty study presents a detailed analysis of vehicle owners' repurchase behaviors, focusing on the brands they currently own.
The study employed data from 107 million U.S. garages, encompassing vehicle purchases throughout 2023 and current vehicle ownership. The findings indicated that loyalty among new vehicle buyers to their existing car brands rose to 51.3%, marking a 1.6% growth from the previous year. Tesla emerged as the leader in brand loyalty, with a rate of 60.7%.
Key Findings and Industry Trends
The research highlighted that several brands exceeded the industry average in retaining customers, indicating effective customer retention strategies. About 62.3% of new vehicle purchases involved trade-ins, while 26% of garages added a new vehicle in 2023. Notably, 11% of these purchases were by individuals either buying for the first time or after a significant gap.
In contrast, used vehicle owners who bought another used vehicle showed a lower rate of brand loyalty at 21.1%, a slight increase from the previous year. However, when these owners switched to new vehicles, the brand loyalty rate was higher, at 26.1%.
Opportunities for Automakers to Enhance Brand Loyalty
Dave Nemtuda, head of OEM products, LexisNexis Risk Solutions suggests that automakers could increase brand loyalty by engaging with used car owners, treating them comparably to original owners. This approach may lead to higher brand loyalty and customer engagement.
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This article was co-written using AI and was then heavily edited and optimized by our editorial team.
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