Tariffs Break Brand Loyalty Streak as Shoppers Shift Preferences

• Brand loyalty declined to 49% from 51% year-over-year

• Ford achieved the highest loyalty rate at 66.6% in truck segment

• Tariffs and market volatility weakened retention across all categories

Brand loyalty among new-vehicle buyers in the United States fell to 49% in 2025, down from 51% the previous year, as tariffs introduced greater volatility into shopping behaviour, according to the J.D. Power 2025 U.S. Automotive Brand Loyalty Study released Tuesday. Despite the industry-wide decline, brands with strong reputations—including Toyota, Honda, and Ford—maintained high loyalty rates, with Ford securing the highest overall figure at 66.6% in the truck segment.

The study, which analyzed transaction data from September 2024 through August 2025 using the Power Information Network (PIN) and its 16,000 affiliated dealers, measured the percentage of owners who purchased or leased the same brand when trading in their existing vehicle. The findings reflect how changing market conditions, including increased model availability, varying product age, and more aggressive incentive offers, have weakened brand retention across all segments.

Segment Leaders: Ford, Toyota, and Honda Dominate Rankings

Five brands ranked highest in their respective segments, with loyalty rates varying significantly by category:

• Premium car: Porsche led for the fourth consecutive year at 58.2%, followed by Mercedes-Benz at 49.7%
• Premium SUV: Lexus topped the segment for the second straight year at 57.4%, with BMW second at 54.0%
• Mass market car: Toyota claimed the top position for the fourth consecutive year at 62.0%, ahead of Honda at 55.5%
• Mass market SUV: Honda ranked highest for the second year at 62.0%, followed by Subaru at 60.6%
• Truck: Ford achieved the study’s highest loyalty rate at 66.6% for the fourth consecutive year, with Toyota second at 61.2%

The truck segment demonstrated the strongest brand retention overall, with Ford’s 66.6% figure representing a 17.6 percentage-point lead over the industry average.

Market Volatility and Residual Value Concerns

“Brand loyalty matters to vehicle buyers because it’s often associated with higher residual values, making vehicles from trusted brands a more financially sound choice over time,” said Tyson Jominy, senior vice president of data and analytics at J.D. Power. “However, buyer loyalty tends to weaken when shifting to a different vehicle segment.”

Jominy noted that automakers consistently delivering vehicles aligned with evolving customer expectations remain best positioned to maintain and grow their loyal base, even as external factors—including tariff-related pricing pressure—introduce uncertainty into purchasing decisions.

The study defines brand loyalty as the percentage of vehicle owners who choose the same brand when trading in or purchasing their next vehicle. Only sales at new-vehicle franchise dealers qualified for inclusion. The 2025 calculations covered all model years traded in during the September 2024–August 2025 period, spanning five segments: premium car, premium SUV, mass market car, mass market SUV, and truck.