Special Report

10 Cars Most Likely to Be Dumped

Beautiful young girl with car key
Source: Thinkstock
 Car buyers consider many factors when purchasing a new car, but perhaps their own previous experience is the most significant one, according to data released by Kelley Blue Book, a car valuation company. If consumers intend to buy the same brand they currently own, that brand has managed to create loyal customers. Some car brands command high customer loyalty, while others command very little.

A brand’s loyalty rating is determined by the current owners’ considerations when purchasing a new car. In the case of top-selling brands such as Toyota and Ford, more than 50% of the brand’s existing customers appeared were considering sticking with the same make in 2015. On the other hand, less than a quarter of Infiniti owners shopping for a new car appeared interested in another Infiniti. Based data provided by Kelley Blue Book on consumer shopping related to 32 car makes, these are the 10 car brands with the least loyal customers.

Click here to see the 10 car brands.

A review of car sales shows the importance of this metric. Ford, Subaru, and Toyota — brands that retain at least 50% of their customers, on average, from one car purchase to the next — are also among the best selling brands in the United States.

In an interview with 24/7 Wall St., Kelley Blue Book analyst Arthur Henry explained that loyalty and sales often go hand in hand. While good reviews are important for a new model, loyalty also has an impact on sales. “But what we see from our loyalty metric is that if people are more familiar with a brand, they’re more likely to be interested in buying a new model,” Henry said. He added that brands with fewer loyal customers are less likely to see a significant sales boost from a new model, even a well-reviewed one.

Of the 10 brands with the highest customer loyalty, eight are among the 10 top-selling brands for 2015. None of the brands with poor loyalty, on the other hand, are among the 10 top-selling brands for 2015, and six sold less than 100,000 in 2014. Comparatively, brands such as Ford, Chevrolet, and Toyota sold more than 2 million units each in the United States last year.

The reasons customers can be loyal to a car brand may be successful marketing or family tradition, but often it is their own experience with the car that plays a big part in the decision. JD Power’s Automotive Performance, Execution and Layout Study measures the quality of the new car experience. Mitsubishi, for example, which has one of the worst loyalty ratings, also has the third worst APEAL score. The majority of the vehicles with poor loyalty also rate below average for their segment.

Many of these brands have more technical problems than the average of 147 reported per 100 vehicles. Customers of poor-loyalty brands such as MINI and Dodge reported more than 190 problems per 100 vehicles. On the other hand, “brands like Toyota and Honda have done really well.” Henry said. “People say they’ve had an awesome or great experience with the brand, so they’re likely to reconsider the brand with their next purchase.”

24/7 Wall St. reviewed Kelley Blue Book (KBB) loyalty data on 32 car makes over the past three-and-a-half years. KBB provided the percentage of car owners in each quarter since the beginning of 2012 considering buying a vehicle of the same make again. Kelley Blue Book also provided total U.S. unit sales for each car make. Quality measures came from J.D. Power’s Automotive Performance & Design (APEAL) Study, which measured satisfaction after 90 days of ownership on a 1,000 point scale, and from J.D. Power’s Vehicle Dependability Study, which measured the number of complaints by make per 100 vehicles reported by new owners as well as by those who have owned a vehicle for three years.

These are the 10 Cars Most Likely to Be Dumped.

10. Lincoln
> Q2 2015 customer loyalty: 37.3%

>Q2 2014 customer loyalty:27.5%
>2015 sales: 65,284

While Ford (NYSE: F) has among the most loyal customers in the U.S. auto market, the company’s Lincoln brand is not as fortunate. Just 37.3% of Lincoln owners were considering a Lincoln for their next car as well. The brand had some positive signs recently. Sales of several of the brand’s current top models, notably the MXC and the Navigator, have risen markedly. Overall, Lincoln sales in June were the best in eight years. The car brand appears to be reliable, with few reported problems per vehicle, and Lincoln is rated very well in J.D. Power’s annual APEAL study.

9. Buick
> Q2 2015 customer loyalty: 36.0%

>Q2 2014 customer loyalty:29.5%
>2015 sales: 149,386

The age of Buick, owned by GM NYSE: GM) buyers is nearly the oldest compared to the age of most car brand buyers, at an average of over 60 years old as of last year. It might be expected that older buyers would be less willing to change brands, but that does not appear to be true. Just 36% of Buick owners appeared likely to make their next car a Buick as well. While so many current American owners may not be interested in buying a Buick again the next time they need a new car, the brand is flourishing in other parts of the world. The company currently manufactures and sells more of its models in China than it does in the United States.

8. MINI
> Q2 2015 customer loyalty: 35.8%

>Q2 2014 customer loyalty:33.9%
>2015 sales: 40560

Loyalty for BMW’s MINI brand has wavered in recent years. In the first quarter of 2012, the brand ranked 13th overall. The line of hatchbacks based on the iconic British car has fallen to eighth-worst since then. Current owners may be balking at purchasing another MINI in part due to mechanical issues they have been having with their current model. In JD Power’s 2015 Vehicle Dependability Study, the brand had more problems reported per vehicle than all but three other brands.

7. Jaguar
> Q2 2015 customer loyalty: 34.9%

>Q2 2014 customer loyalty:26.3%
>2015 sales: 10221

Jaguar is a relatively niche brand in the United States. Last year, just 15,773 were sold in the U.S. market, with another roughly 10,000 sold this year through August. Only 34.9% of the current owners of the British luxury brand’s line of vehicles are considering buying a new Jaguar next time they purchase a car. That is actually a significant improvement from just a year ago, when just 26.3% said the same.

6. Volvo
> Q2 2015 customer loyalty: 34.6%

>Q2 2014 customer loyalty:30.5%
>2015 sales: 40854

Volvo, currently owned by chinese automaker Geely after being sold by Ford, is selling record numbers of its vehicles in other parts of the world. In the United State, however, the Swedish brand has struggled in recent years — Volvo sold only 56,000 units last year, down from 140,000 units in 2004. Current Volvo owners are more likely to consider another brand the next time around. Less than 35% of current owners surveyed in the second quarter of this year appeared likely to buy another Volvo. One reason for this may be the brand’s less than stellar reliability reputation. Owners reported an above-average number of mechanical problems in 2015.

5. Chrysler
> Q2 2015 customer loyalty: 30.9%

>Q2 2014 customer loyalty:22.9%
>2015 sales: 221550

Unlike some of the brands with poor loyalty, Chryslers have been selling well of late. Chrysler is a brand owned by Fiat Chrysler (NYSE: FCAU) Sales of the brand through the first eight months of the year are up 14% compared to the same period last year, led by substantial growth in sales of the Chrysler 200. Current owners of the brand’s vehicles, which also include the 300 and the Town & Country, may be less likely to make the same decision next time. Barely 30% of current Chrysler owners are loyal to the brand.This is a substantial improvement, however, from the second quarter of 2013, when the company had the estimated loyalty of just 21.9% of owners at the time.

4. Dodge
> Q2 2015 customer loyalty: 30.1%

>Q2 2014 customer loyalty:23.3%
>2015 sales: 337177

Another brand owned by Fiat Chrysler, Dodge is not seeing the same recent boost in sales as Chrysler. In fact, sales are down 16% so far in 2015 compared to the same period last year, led by losses in models such as the Caravan. One reason owners are so unwilling to purchase a Dodge in the future may be the reliability of their current models. Based on J.D. Power’s 2015 Vehicle Dependability Study, Dodge owners reported more problems per vehicle than all but a handful of makes.

3. Scion
> Q2 2015 customer loyalty: 27.2%

>Q2 2014 customer loyalty:26.1%
>2015 sales: 32,691

Toyota (NYSE: TM) launched Scion in the early 2000s to appeal to younger buyers. The company sold more than 73,000 units in the U.S. market in 2012. This year, the company is on track to sell less than 50,000. Scion’s aggressive targeting of younger buyers does not appear to have been successful, with the average age of a Scion buyer just under 50 years old. One reason Scion drivers are less likely to stick with the brand may be that their experience with their current model has been less than satisfying. The model ranked below average in J.D. Power’s annual APEAL Study.

2. Mitsubishi
> Q2 2015 customer loyalty: 24.9%

>Q2 2014 customer loyalty:18.6%
>2015 sales: 65,701

Japanese automaker Mitsubishi is on the verge of ceasing production in the United States — it plans to end operations in its only plant in Normal, Alabama in November. Despite the upcoming closure, sales of the auto brand have been strong of late after an abysmal period a couple of years ago. Sales of the brand in the U.S. market are up by nearly 25% from last year, led by the Mirage and the updated Outlander. Still, the company does not appear to be able to retain its customers. Less than a quarter of current Mitsubishi owners surveyed in the second quarter of this year appeared likely to buy another Mitsubishi. This is, however, a major improvement from a year prior, when just 18.6% of owners at the time were loyal.

1. Infiniti
> Q2 2015 customer loyalty: 23.4%

>Q2 2014 customer loyalty:30.3%
>2015 sales: 85,348

The Nissan-owned luxury brand Infiniti has been selling very well both globally and domestically of late. Sales of the brand’s top models, the Q50 and QX60, are each up by more than 20% so far in 2015 compared to the first eight months of last year. Despite the growing sales, the company cannot instill loyalty within its buyers. Just 23.4% of Infiniti owners were likely to purchase another Infiniti as their next car, worse than any other brand. This also represents a significant decline in loyalty — less than a year ago, close to 38% of the brand’s owners were considering buying another car of the same make.

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