Honda & Other Japanese Brands Top Brand Loyalty In Repeat Purchases

Discussion in 'Honda Industry News' started by webby, Mar 14, 2018.

  1. webby
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    webby Administrator

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    Edmunds Trade-In Loyalty Report, which studied more than 13.9 million vehicle transactions from 2007 to 2017, shows customers are most loyal to Japanese brands such as Toyota, Subaru and Honda. Rounding out the top five spots were Ram and Chevrolet which both had a loyalty rating of 54%.

    At the opposite end of the mainstream spectrum were brands such as Chrysler, Smart and Dodge. All three had less return customers than Fiat and Mitsubishi.

    Over the past decade, there have been some major winners and losers. Subaru and Mazda saw significant jumps in customer retention while the latter brand’s CX-5 crossover had the highest number of return customers of any vehicle in 2017.

    The loser’s bracket saw customers flee from Chrysler and Dodge vehicles. Both brands saw their loyalty rating nearly cut in half over the past decade and Buick didn’t do much better as its rating dropped from 35% in 2007 to 29% in 2017.

    In the luxury segment, buyers are most loyal to Lexus, Audi and Land Rover. They were closely followed by Mercedes, Porsche and BMW. The least loyal luxury customers belong to Infiniti, Jaguar and Volvo.

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    The love affair with crossovers was also evident as Edmunds notes passenger car loyalty hit its lowest point in eight years. Cars only accounted for 36 percent of all new vehicles sold last year and it helps to explain why the Honda Accord isn’t flying off dealer lots. Another interesting finding was the fact that crossovers and SUVs dethroned trucks in customer loyalty for the first time ever.

    To help build and maintain a loyal following, Edmunds says automakers need to “leverage emotional design, offer a wide array of SUVs and have a solid history of reliability.”
     
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  2. freggie

    freggie Well-Known Member

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    It is also how the brands do their sales. I know Subaru and Honda does not usually knock off more than $2k off their MSRP vs 'American' cars who knock off thousands of dollars, even my dealership was advertising $10k off the new Corvette... So in return end Japanese brands have more of a higher resale value and you can 'get' more from your trade in.

    People knowing this, what they do is purchase a Japanese car and in 3 years trade it in for a new car and come in on top of their trade (trade is worth more then what they owe) also these people do not put many miles on their car either so thats helps with the depreciation.

    All this information came from my friend who sold Honda's at the dealership.

    If you want another car sales tip... when negotiating, they will go back and come with a 'better' price. The 3rd time they come back is usually the last time and that is their final offer.
     

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