Automotive Owner Brand Loyalty Study

New vehicle brand loyalty reached a five year high in 2025, improving to 51.4%. The increase in loyalty is a bright spot in an otherwise challenging year for the U.S. auto industry, with disruptions coming from affordability barriers and changing fuel preferences.

Our analysis draws on LexisNexis® Risk Solutions proprietary data and industry sources. We examine the forces shaping automotive loyalty, the impact of EV (electric vehicles) adoption, and the strategies manufacturers should use to retain customers.

Industry Overview

• Brand loyalty rates: For calendar year-end 2025, 51.4% of customers purchased a new vehicle from the same brand as the one(s) they already owned. The brand loyalty rate increased 0.4 percentage point from 2024. Ten brands surpassed the industry average, showing resilience in consumer loyalty.
• Affordability and retention: High transaction prices and rising maintenance costs are slowing sales and jeopardizing long-term retention. Migration to EVs presents a challenge to the traditional dealer service model and is forcing manufacturers to rethink post-sale experiences. Alternate fuel vehicles are now replacing gas 6x more frequently than in 2020—growing from 3% of vehicle replacements to 18%. The industry must now compete on meeting vehicle owners’ expectations throughout the ownership cycle, not just on vehicle features and price.

Brand Loyalty Trends

• Toyota leads: Toyota closed 2025 as the brand leader, posting a 60.2% loyalty rate. Stronger hybrid retention played a big role, with loyalty among those owners climbing 2.5 percentage points to 60.1%.
• Tesla's challenge: After years taking number one or two positions, Tesla slipped to third place, with a 55.9% loyalty rate. More Tesla owners are exploring rival EV options, with Tesla loyalty dropping from 98% in 2020 to 78% in 2025 among those replacing their EV with another EV.
• Fuel type dynamics: Preference for gasoline vehicles has been falling. That trend was interrupted in October when federal EV tax credits expired. Gas loyalty snapped back from a historic low of 79.7% in September to 84.9% in November.

Influencing Factors

• Slower transition to electric vehicles: U.S. consumers are transitioning to EVs more slowly than expected, as the future looks unpredictable after policy changes, shifts in emissions standards and incentive rollbacks.  EV brand loyalty dropped from 53.1% last year end to 51.3% in 2025.
• Rise in vehicle prices: Average new vehicle prices crossed $50,000 in September, with incentives dropping to 6.5% of Average Transaction Price—the lowest since mid-2024, according to Cox Automotive. However, rising costs did not deter owners from re-purchasing with their brands. Two of the largest segments finished 2025 with the highest brand loyalty rates in years: Large Pickup (54.8%) and Compact SUV (53.0%) were both up a percentage point from last year.

Methodology

LexisNexis Risk Solutions analyzed U.S. consumers’ vehicle purchases and garages using proprietary linking technology and the LexID® unique identifier. Loyalty was measured by matching purchased vehicles against vehicles customers already had in their garages. A loyalty rate above 50% indicates strong brand retention.


Conclusion & Recommendations 

Auto manufacturers must address affordability, adapt to supply chain disruptions, and improve post-sale experiences. As EV adoption reshapes loyalty dynamics, brands that deliver thorough value and address retention challenges early will be best positioned for long-term success.

Our recommendations:

• Employ advanced owner intelligence to understand which of your customers are in market and at risk of defecting your brand, so you can communicate with them prior to their purchase.
• Monitor and adapt to shifting consumer repurchasing trends, especially around the choices between hybrid and full electric.
• Leverage garage-level data analytics to understand and anticipate shifts in consumer loyalty.