According to the J.D. Power and Associates 2008 Customer Retention Study Honda leads the auto business in retaining the highest percentage of new-vehicle buyers.
The study rates the percentage of new-vehicle purchasers who change a previously bought new vehicle with another from the same brand. Honda retains an exceptional 64.7% of its buyers, an improvement of about two percentage points from 2007, followed close behind by Toyota at 63.2% and by Lexus at 60.4%.
It was stated by J.D. Power and Associates that "Honda's reputation for creating safe vehicles with high resale value has been instrumental in retaining owners," and this was a consistent theme among the peak contenders. In the meantime, Jaguar fared badly in the area of customer retention ranking, with only more than twenty-five percent of customers staying with the brand.
This is considerably lower than the normal customer retention rate, which slightly went down to 48% in 2008 from 49% last year. The greatest improvements is posted by Land Rover with regards to customer retention rates from 2007, going up by 18 percentage points in 2008 to 49%.
This places Land Rover higher than the industry average, as well as other brands such as Audi, Porsche, and Volkswagen who were all, without exception, below average.
Brands that are foreign based led the way in customer retention, with the best placed US brand coming in at 6th place courtesy of Ford. The Chevrolet brand of GM followed close behind, although it was nearly 13 points behind the Honda brand.