For the last year, car dealers nationwide have had few cars to sell. With a limited number of the most popular models, American car shoppers stuck to what they knew and didn’t branch out much.
That’s the result of J.D. Power’s latest Automotive Brand Loyalty Study, and there’s opportunity in it if you’re clever.
“The issue of tight supply chain and lower-than-normal production could have been quite disruptive to loyalty,” said Tyson Jominy, vice president of data & analytics at J.D. Power. “But the highest-ranking brands excelled by staying focused on keeping owners in the brand.”
The study examines how many car shoppers bought a new vehicle of the same brand as the vehicle they traded in. It considers cars, trucks, and SUVs separately, breaking out luxury and non-luxury categories.
Toyota Brings ‘Em Back
Americans buy more SUVs than cars or trucks, and Toyota commands the most brand loyalty among mass-market SUV buyers. Subaru came in second.
Toyota also won among mainstream car buyers, followed by Kia.
Ford had the most loyal truck buyers, followed by — you’re not going to be surprised here — Toyota.
Luxury buyers showed a bit more variety. Among premium car buyers, Porsche owners were the most loyal group, with Genesis coming in second.
In the luxury SUV market, BMW claimed the most loyalists, with Lexus close behind.
There Are Savings in Being Disloyal
When everyone is hunting for the same thing, hunting for a different thing can be smart.
Supply and demand govern car prices. Throughout 2022, supply has been low at dealerships of most brands as the auto industry struggles with a microchip shortage and other supply chain issues. Some are even low on hood emblems. But it hasn’t been the same for every brand.
Toyota, Kia, and Hyundai ended August with the lowest inventory levels in the industry. BMW, Lexus, and Porsche are among the lowest in the luxury market. Unsurprisingly, these automakers averaged sales as much as 9% over invoice last month.
Others aren’t in the same boat. Ram, Volvo, Lincoln, Buick, and the smaller Italian brands Alfa Romeo and Fiat sold most of their cars below invoice in August.
