J. D. Powers Customer Retention Study Shows Toyota Owners are Most Loyal

The study is unique in that it not only measures retention rates, but tracks which brands and models are losing out to those

For each customer Toyota loses to another brand, it attracts six new ones from its competitors. (Photo: Trevor Hofmann, Canadian Auto Press)

gaining ground, and why the new car buyers changed their brand or, alternatively, stayed loyal to a particular nameplate.

Why do owners defect from a brand? Often it is because they encountered problems with the long-term durability of their car, incurred high maintenance costs or experienced poor dealer service. But it doesn't always take something so dramatic to cause a customer to switch brands, especially this day and age when deep incentives and enticing rebates sway some buyers, exciting new styling and thrilling performance pull in others, and fuel economy becomes more critical across the sector.

Why Toyota and Honda are so strong in the market, however, is not only because

Honda manages to pull in four new buyers for every person who trades in their Accord, Civic or Odyssey for another brand. (Photo: Rob Rothwell, Canadian Auto Press)

they have high retention rates, but also because they pull in more new customers than they lose to their competitors. Toyota's conquest rate is stunning actually. For each customer it loses to another brand, it attracts six new ones from its competitors. Honda manages to pull in four new buyers for every person who trades in their Accord, Civic or Odyssey for a rival midsize sedan, compact car or minivan.

This is where Subaru is losing ground. While its retention rate is high, it is not succeeding at attracting new customers to its brand.