Toyota Building Sales on Loyal Customers
July 9, 2010
SANTA MONICA, CA - A larger percentage of Toyota’s new car sales are now coming from buyers who trade in other Toyotas, according to Edmunds.com.
In 2009, 42% of Toyota’s new car sales included a Toyota trade-in (not counting the Cash for Clunkers period, which created many anomalies in the marketplace). So far in 2010, 49% of Toyota’s new car sales included a Toyota trade-in.
“Before the big recalls were announced in late January, Toyota had been considered a safe brand for those who didn’t know which car to buy,” says Edmunds.com Senior Analyst Karl Brauer. “Now, many of those uncommitted buyers don’t feel as confident in the Toyota brand and are turning elsewhere, but some Toyota loyalists are displaying as much confidence as ever.”
In June Toyota sales were down 11% from May but up 7% from June 2009. Industry wide, new car sales were down 10% from May but up 15% from June 2010.
Industry wide in 2010 to date, 42% of trade-ins matched the brand of the new vehicle being purchased – the same percentage as last year (not counting the Cash for Clunkers period). Of all brands, Ford traditionally has had the most customer loyalty. Edmunds.com’s research indicates that 59% of Ford’s new car sales typically include a Ford trade-in.