Study
Automotive

U.S. Automotive Brand Loyalty Study

Results from the J.D. Power 2020 U.S. Automotive Brand Loyalty Study will publicly release on Wednesday, July 15, 2020. This document provides a high-level overview of the methodology, award criteria, and segmentation evaluated.

Methodology

The J.D. Power U.S. Automotive Brand Loyalty Study measures if a vehicle owner purchased the same brand after trading in an existing vehicle on a new vehicle purchase or lease. Only sales at new vehicle franchised dealers qualify. Our process utilizes the Power Information Network (PIN) and its 16,000 affiliated dealers, which records vehicle trade and purchase data in the Dealer Management System.

The 2020 award calculations are based on transaction data from June 2019 through May 2020 and include all model years traded in.

Segmentation

Awards will be presented to the following two brand-level segments: Mass Market and Luxury.

Subscription

Subscribing to Conquest Loyalty is a pre-requisite to award licensing and viewing in-depth performance results.

Award Criteria

For a brand to be award eligible, it must meet the following criteria:

  • A buyer is considered loyal only if the brand of vehicle traded in is identical to the brand purchased
  • Vehicle must be traded in to a franchised dealer at time of transaction and recorded in the Dealer Management System; no private party sales or lease disposals are included
  • Brands with a ratio of trade-ins to retail sales below 0.5 are not eligible
     

Calculation Process

Loyalty Calculation:
  1. Gather all transactional data from PIN’s 16,000 affiliated dealers for the months June 2019 to May 2020
  2. Isolate transactions to those which include a vehicle disposed of, or traded in, at time of new vehicle purchase transaction
  3. Transactions in which the brand traded in match the new vehicle brand purchased are considered loyal
  4. The ratio of (3) to (2) is “loyalty rate”
Exclusions and Limitations:
  • Vehicles sold in a private party transaction or lease terminations are not included in the calculation
  • Brands with a trade in to purchase ratio of 0.5, such as brands new to the market, are not eligible for this award