Loyalty Rates Climb for New Car Buyers

More than half (53%) of new-car buyers in the U.S. stayed with their previous brand in the first quarter of 2015 the highest ratio of brand loyalty in a decade, according to an IHS Automotive study.

Among the brands posting 10-year highs are Chevrolet, GMC, Infiniti, Jeep, Land Rover, Lexus, Lincoln, Mazda, Mitsubishi, Nissan, Porsche, Subaru and Volvo.

IHS attributes the increase to model proliferation, an uptick in leasing, quality improvements and greater effort by carmakers to retain their existing customers. However, the market research firm says most brands in the U.S. lost more customers last year than they retained.

The firm estimates the number of models available to consumers in the U.S. rose 12% between 2005 and 2015. It points out that expanding a brand's lineup gives current customers more choice within the brand when they buy again.

The rebounding lease market, whose share of the new-car market grew from only 14% in 2005 to nearly 23% this year, also contributes to loyalty scores. IHS notes that lessees are consistently more loyal to a brand than are retail buyers.