Overview: Car Brand Loyalty Hits a Historic Low
New insights from J.D. Power’s 2025 study reveal a striking trend in the US auto market: overall loyalty to a chosen car brand has slipped to historic lows, with less than half of owners willing to repurchase the same brand after their current vehicle reaches the end of its life. While the headline figure is telling, the data also highlights sharp contrasts by segment and by manufacturer, underscoring how reliability, brand perception, and ownership experiences shape long‑term loyalty.
For buyers, this signals more options and more dynamic competition in the coming years. For automakers, the challenge is clear: sustain trust, deliver consistent quality, and create loyalty programs that extend beyond the sale. The study spans luxury and mass-market brands and separates the results by vehicle type, offering a granular view of where consumers remain loyal and where brands struggle to keep ownership within the family.
Luxury Segment: Porsche Remains the Loyalty Leader
In the premium tier, Porsche continues to command the highest repeat-purchase intent, with loyalty around 60%. The German marque maintains a reputation for performance, craftsmanship, and a premium ownership experience that translates into longer relationships with customers.
Close behind is Mercedes-Benz, whose loyalty hovers near the industry average at roughly 50%. This places Mercedes on par with the broader market in terms of customer retention, reflecting both continued interest in its luxury lineup and the persistent challenge of differentiating in a competitive segment.
SUV Segment: Lexus, BMW, and Mercedes in the Spotlight
The SUV and crossover category—the fastest-growing segment—shows a slightly different dynamic. Lexus leads with a loyalty level close to 57.4%, driven by reliability, comfort, and strong resale value that resonates with buyers seeking durable family vehicles. BMW trails at about 54%, while Mercedes-Benz sits near the same mark as the overall industry average at roughly 50%.
These numbers illustrate how the SUV market rewards consistent quality and brand perception. For manufacturers, sustaining loyalty in this space means balancing performance with practicality and maintaining a positive ownership experience across a broad range of models.
Mass-Market Segment: Toyota Tops the Chart
In the mainstream segment, Toyota leads the pack with loyalty around 62%, a level that underscores its reputation for reliability, value, and a broad, dependable product lineup. Honda sits in a solid second place with approximately 55.5% loyalty, and Subaru closely follows at about 60.6%, marking a notable strength in AWD offerings, safety features, and customer satisfaction in daily use.
Despite a modest decline in the overall loyalty average, these brands demonstrate that mass-market success still hinges on delivering durable performance, predictable ownership costs, and consistent service experiences that encourage buyers to stay within the same brand family over time.
What This Means for Buyers and Brands
For consumers, the study emphasizes the value of long-term considerations beyond the immediate purchase: expected maintenance costs, depreciation, and the quality of aftersales support can heavily influence future brand decisions. For automakers, the implications are clear. Brands that secure loyalty invest in reliability, product consistency, transparent pricing, and a frictionless ownership journey—from dealership experience to service visits to digital engagement. In an era of rapid product updates and electrification, loyalty strategies that address total ownership experience are more critical than ever.
Understanding the Numbers: Segments, Not Just Brands
The J.D. Power 2025 findings remind readers that loyalty is not uniform across the market. Luxury brands may perform strongly in certain sub-segments, while mass-market players compete on value and dependability. SUV loyalty, in particular, reflects how well a brand supports families and daily driving needs. By unpacking loyalty by segment, the study provides a roadmap for carmakers seeking to improve customer retention through targeted product and service investments.
Conclusion: The Winners and the Watch-Outs in 2025
Even as the overall loyalty bar dips, the brands that excel—Porsche in luxury and Toyota in mass market—show that consistent quality, strong resale value, and a positive ownership experience can yield lasting customer relationships. The takeaway for buyers is to prioritize long-term ownership factors, while automakers should focus on cohesive experiences across sales and service to build durable loyalty in a competitive market.
