The longer you keep your car, the less Brand-Loyal you might be
- November 7th, 2014
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The latest report from Experian Automotive finds that while there might be exceptions when it comes to other brands, the majority of car owners will less likely buy another vehicle from the same brand family if they’ve kept their vehicle for over 10 years.
The good news for automakers is that brand loyalty is at 60% through three years of ownership, but then it takes a huge drop to only 33.8% once the consumer has owned their vehicle for 12 years or longer. Dodge and Buick are at the top of their game when it comes to ownership, with consumers holding on to their vehicles for an average of 9 years, but they’re not so good when it comes to brand loyalty which is only 22.6% for Dodge and 38.4% for Buick. When it comes to brand loyalty, Ford comes in strong at 61%, followed closely by Subaru at 59.4%. Although Subaru has great brand loyalty, their ownership is much lower at only 7 years. The longest length of ownership among luxury brands were Acura and Volvo.
“Over the course of seven years of ownership, a lot of things change, including vehicle product offerings, vehicle budget and credit score,” said Brad Smith, director of automotive market statistics for Experian Automotive. “Additionally, the increase in time between dealer interactions, whether they are for sales or service, increases the probability of a customer defecting to the competition.”
IHS forecasts that vehicles 12 years and older are expected to increase by 15%, and with the average age of vehicles on the road reaching an all-time high of 11.4 years, automakers might not want to forget about those with older vehicles.
SOURCE: Experian Automotive