Brand Fidelity Nears Pre-Pandemic Standards
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The brand loyalty rate for U.S. new-vehicle purchases has seen a notable increase, reaching 53.3% between January 1 and June 30, 2025. This figure is up from 52.1% at the end of December 2024, nearing the pre-pandemic 2019 level of 54.3% loyalty.
According to a report by LexisNexis Risk Solutions, this rebound in brand loyalty is influenced by several key factors. Economic and geopolitical challenges, such as tariffs, geopolitical tensions, and higher prices, have caused fluctuations in brand loyalty. Despite these hurdles, the rebound is noteworthy.
The average transaction price of new vehicles has also increased modestly by 1.2%, reaching an average of $48,907 in June 2025. This trend may be influencing consumer buying patterns and loyalty decisions.
Toyota continues to lead the way in brand loyalty, with an overall loyalty rate of 65.4%. The RAV4 compact SUV from Toyota has an impressive loyalty rate of 69.4%. Nine other automakers also scored above the mid-year industry average of 53.3%.
However, the transition to electric vehicles in the U.S. has been slower than forecast, with price remaining a major factor in consumer decisions. Tesla, a key player in the electric vehicle market, has experienced a notable drop in loyalty. Tesla's loyalty rate dropped from 60.9% in 2024 to 54.2% in the first half of 2025, indicating growing competition in the electric vehicle market. Historically, 88% of Tesla owners replacing an electric vehicle have stayed with Tesla, but this figure has now fallen to 75%.
Automakers are seeking alternative sourcing and adjusting operations to keep assembly lines running and inventories steady in an environment marked by consumer uncertainty. The compact SUV segment has been particularly affected by higher import tariffs, fewer purchase incentives, and flat pricing, reducing affordability.
LexisNexis Risk Solutions predicts that successful OEMs will leverage data and analytics to simplify their automotive data ecosystems, anticipate market shifts, and design targeted loyalty programs. Discounts remain relatively modest, accounting for 6.9% of the average transaction price (ATP).
The combination of these factors could potentially erode brand loyalty, leading buyers unable to afford their preferred model to consider different brands or body styles. The volatile EV market, with high prices, shifting incentives, and policy changes, is also testing loyalty in this sector.
[1] LexisNexis Risk Solutions, U.S. New-Vehicle Brand Loyalty Report, H1 2025. [2] LexisNexis Risk Solutions, U.S. New-Vehicle Brand Loyalty Report, Full Year 2024.
