Tariffs, Incentives Cut Auto Brand Loyalty to 49%, J.D. Power Study Shows

• Brand loyalty falls to 49% as consumers shift segments and tariffs alter purchase decisions.

• Ford, Toyota, Honda, Lexus, and Porsche lead in customer retention across core vehicle segments.

• Study covers U.S. transactions from Sept. 2024–Aug. 2025 at franchised new-vehicle dealerships.

Brand loyalty among U.S. new-vehicle buyers has declined to 49%, likely caused by market dynamics and tariff-related disruptions, according to the 2025 J.D. Power U.S. Automotive Brand Loyalty Study. The report, now in its 7^th year, was released Thursday and marks a 2% decrease from the previous year.

The study attributes the decline to a range of factors, including increased availability of vehicle models, more aggressive sales incentives, and consumers switching between vehicle segments, such as moving from sedans to SUVs. Tariffs have also introduced added volatility into vehicle purchasing behaviour.

“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.

The study measures loyalty by calculating the percentage of vehicle owners who choose the same brand when trading in or purchasing a new vehicle at a franchised dealership. J.D. Power noted that shifts in product age and incentive strategies also contribute to fluctuations in loyalty. Results are based on transactions from September 2024 through August 2025 and include all model years traded in.

Despite the decline in average loyalty, several brands continue to lead within their respective segments:

• Porsche topped the premium car category for the fourth year in a row, with a 58.2% loyalty rate.
• Lexus led the premium SUV segment with 57.4%, followed by BMW at 54.0%.
• Toyota ranked highest among mass market car brands, recording a 62.0% loyalty rate, ahead of Honda at 55.5%.
• Honda also led the mass market SUV segment, matching Toyota’s 62.0%, with Subaru close behind at 60.6%.
• Ford maintained its position as the top brand in the truck segment for a fourth consecutive year, with a 66.6% loyalty rate—the highest across all segments.