Brand Loyalty Fades Fast As Buyers Chase Value And Style

This article first appeared on DMARGE Cars

Loyalty used to be the auto industry’s most powerful currency. Dad drove a Ford, so you drove a Ford, and maybe your son would too. That cycle is breaking.

New data from S&P Global Mobility shows only 51 percent of American buyers are sticking with the same car brand in 2025.

That’s down four points from 2020, and it’s hitting everyone from luxury stalwarts to mainstream players.

The average new car price of just under $51,000 USD is forcing shoppers to look harder at value, and that means they’re more open to switching.

It’s creating a battlefield in the most competitive segment of all: compact SUVs. Almost every carmaker has one, and buyers are being spoiled for choice.

That’s why companies like Kia and Hyundai are cleaning up, winning over customers who once would have gone straight back to their old brands without thinking.

Not every brand is losing. General Motors still leads multi-brand loyalty at 68 percent, while Ford remains top dog for a single marque at 59 percent. Mini, of all brands, has seen the sharpest rise, jumping more than four points in a year.

On the flip side, Tesla has seen loyalty collapse by 12 points, driven partly by Elon Musk’s politics and its battered reputation in the US market.

The churn is also being fuelled by volume, with more people are returning to dealerships, up four percent on last year, and that bigger pool naturally drives more defections.

Mainstream conquests are up nearly eight percent, while luxury brands are watching more of their long-time clients walk away. Government EV credits that are about to expire are only adding to the noise.

The upshot? Loyalty is no longer a guarantee.

Buyers are shopping around, looking at price, tech, and status before they look at badges. For some brands, that’s a problem. For others, it’s the biggest opportunity they’ve had in decades.