Car Brand Loyalty is on the Rise: Are You Loyal?…

Posted on by Defensive Driving | in Defensive Driving Tips

When you go out to eat at your favorite restaurant, do you usually order your favorite dish because you know you will love it, or do you take a risk and try something new? Most people stick with what they know because it is a safe bet. After all, why would you want to risk your money on a meal that may be subpar? It appears that the same is true when it comes to purchasing a car. According to Fox Business, 51.5% of people are now loyal to their car brand when purchasing a new car.

What makes them loyal?

When people purchase a brand they have already known, they know what they are going to get. There is a lot less of a risk involved, which is especially important since so much money is being spent. They know that the brand is reliable. They know it gets good gas mileage. They know the customer service they receive is going to be stellar.

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But companies are doing even more to ensure brand loyalty.

Car companies know how important loyal customers are. It costs them way less money to keep a customer than it does to try to lure someone away from a brand they already trust. That is why they are going out of their way to keep these customers. They do so by offering loyal customer financing rates or cash back offers just for previous clients.

What companies have the most loyal customers?

If you have ever owned a Ford, Toyota, or Honda, it is probably no surprise that these brands have the most loyal customers, coming in with 65.1%, 58.5%, and 57%, respectively. However, what may be surprising is the huge jump that Porsche and Cadillac made this year. Porsche increased their loyal customers by 9.5%, and Cadillac had an 8.3% increase. It’s clear these brands are doing something right.

How can I use this to my benefit?

When it comes time for you to buy a car, use your loyalty as a negotiating point. The company will do almost anything it takes to keep you as a customer. If you really feel the need to switch, chances are another brand will even match these incentives to tempt you to make the plunge away from your allegiance.

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