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During the first quarter, nearly 58% of Toyota trade-ins resulted in the purchase of a new Toyota vehicle, down 4% from the first quarter of last year. At the other end of the spectrum, Mercury owners had the lowest loyalty among all major brands, with only 14% of Mercury trade-ins resulting in the purchase of another Mercury vehicle.
Toyota, Ford, Hyundai, Honda, Subaru, Nissan and Mercedes-Benz are the only brands that had a loyalty rate of 50% or higher, according to Edmunds.com’s study. (Edmunds.com only included brands that sell more than 10,000 vehicles per quarter.) Year over year, Mercedes-Benz gained the most ground in retaining customers, followed by BMW and Nissan.
Here are some other trade-in trends:
“Some automakers offer owner loyalty programs that are rather compelling, such as Toyota’s recent offer of two years’ worth of free maintenance for current owners who buy new Toyotas,” says Michelle Krebs, senior analyst for Edmunds.com. “However, today automakers like Ford, Honda and Chevy are generating loyalty by delivering on or above customer expectations – without having to pay for special marketing programs.”