The automotive industry values buyer loyalty as a key metric, as it indicates how well a brand’s cars meet buyers’ needs. According to J.D. Power’s 2025 U.S. Automotive Brand Loyalty Study, the average loyalty rate among brands fell to 49% this year, down from 51% last year. The study analyzed transactional data from over 16,000 dealerships and calculated a loyalty rate by looking at the ratio of transactions where the brand of the vehicle traded in matched the brand of the vehicle purchased.
The top brands in each segment were: Porsche for premium cars with a 58.2% loyalty rate, Lexus for premium SUVs with a 57.4% loyalty rate, Toyota for mass-market cars with a 62.0% loyalty rate, Honda for mass-market SUVs with a 62.0% loyalty rate, and Ford for trucks with a 66.6% loyalty rate. These brands have consistently ranked high in loyalty, with Porsche leading the premium car category for the fourth consecutive year and Toyota leading the mass-market car category for the fourth straight year.
However, Tesla experienced an “unprecedented” decline in loyalty in 2025, coinciding with Elon Musk’s involvement in politics. According to S&P Global Mobility data, Tesla’s loyalty rate fell from 73% in June 2024 to 49.9% in March 2025, below the industry average. This decline in loyalty contributed to a 13% year-over-year decrease in Tesla sales through the first half of 2025.
The importance of buyer loyalty cannot be overstated, as it not only indicates a brand’s quality and reliability but also affects the brand’s outreach and marketing efforts. Loyal customers are more likely to purchase from the same brand again, reducing the need for expensive marketing campaigns. Additionally, buyer loyalty can also impact the residual value of a vehicle, making it more valuable to own and operate.
In conclusion, the 2025 U.S. Automotive Brand Loyalty Study highlights the importance of buyer loyalty in the automotive industry. The top brands in each segment have consistently ranked high in loyalty, while Tesla’s decline in loyalty serves as a cautionary tale about the impact of external factors on customer loyalty. As the industry continues to evolve, it will be interesting to see how brands adapt and respond to changing customer needs and preferences.