Automotive brands are having a harder time holding onto consumers, what with revived inventories and plentiful incentives, new data shows.

Reynolds and Reynolds’ annual retention and defection report put 2024 nationwide brand retention flat at 44%. 

It found that 63% of the 38 brands it examined experienced year-over-year customer retention declines, half of those by more than three percentage points.

Just six auto brands enjoyed retention rates of more than 50%, Toyota repeating with the highest rate at 62%, a year-over-year increase after a three-year decline. It was followed by Ferrari at a 58% rate, and Toyota’s luxury brand Lexus at 56%. Honda and Lamborghini rounded out the top five at 54% and 52%, respectively.

Reynolds bases its findings on closed deals for new and used vehicles bought or leased at U.S. stores, including only deals with both the traded-in and acquired vehicle being brands it tracks. It made its calculations from stores using its dealer management system, assuming that the findings are representative of all U.S. vehicle consumers.

In the report’s first five-year analysis, Reynolds found that 14 brands improved their retention rates over 2020, the year the Covid pandemic began in the West, while five brands have seen declines since then. BMW, Lincoln and Mercedes are the only brands that have steadily increased retention over that time, Reynolds found.

Ford, Kia and multiple Stellantis brands have had an overall retention loss over the five years, while Chevrolet, GMC, Honda and Volkswagen have gained retention. Subaru, meanwhile, stopped a multiyear retention decline with a welcome boost.

The report also delves into conquest data. Download it here.

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