Key highlights based on data from CarMax purchases with trade-ins from January 1, 2023, through December 31, 2023:
Approximately one in five CarMax customers are brand loyal and purchase the same brand as their trade-in.
Tesla places number five on our top 10 list of brands customers purchase again, only after appearing on CarMax lots for the first time in 2018.
The Toyota Prius emerges as the model with the highest brand loyalty. When shopping for their next car, more than 38% of current Toyota Prius owners opted to purchase another Toyota Prius.
SUVs have expanded their loyalty over time with 71% of customers purchasing another SUV compared to 61% just six years ago.
Luxury brands have sustained their loyalty positions since our last report in 2017, with six out of the top 10 brands that customers repurchase falling into this category.
For many Americans, the decision to buy a car is multifaceted – it's about practicality and also a reflection of identity and lifestyle. Think of what you look for when purchasing a vehicle: Are you drawn to the benefits of a hybrid or electric car, the versatility of an SUV, the premium features of a luxury vehicle, or another blend of options? A buyer's choice can speak volumes about who they are, where they are in life, and what they value.
But have you ever wondered how loyal consumers are to a chosen brand? How often do they buy the same car as their trade-in? And what types of vehicles have the highest owner loyalty? In Which Car Brands Have the Most (and Least) Loyal Owners? (data from 2017; published in July 2018), we took a first look at the data surrounding brand loyalty at CarMax.
Since then, various factors have contributed to changes in the car-buying experience, including economic fluctuations, technological advancements, environmental considerations, trade policies and tariffs, new car brands and models, and significant world events such as the COVID-19 pandemic.
Nearly six years later, we're revisiting the topic to build on the findings with fresh insights using data from CarMax purchases with trade-ins from January 1, 2023, through December 31, 2023. Let’s take a look at how brand loyalty has evolved.
How Often Do Customers Purchase the Same Brand As Their Trade-In?
Our latest findings reveal that approximately one in five CarMax customers are brand loyal and purchase the same brand as their trade-in – a proportion that has remained steady since our analysis in 2017. However, there has been a noticeable shift in the composition of the top 10 brands favored by CarMax customers.
Our most recent data shows Toyota moving from fifth highest brand loyalty rate in 2017 to first, Lexus shifting from the number one spot to third, and Mercedes-Benz holding in second. Ram also skyrockets to fourth after not being on the 2017 list.
In both 2017 and 2023, luxury brands account for more than half of the top ten makes on the list of brands with the highest customer loyalty. The biggest shifts are Infiniti dropping from number nine to 24 on our list, and Tesla ranking in the number five spot. Keep in mind, a broader trend toward electric vehicles and the fact that CarMax began selling Teslas in 2018 explains why Tesla made this year’s list and not the previous one.
Are Owners Loyal to Their Specific Car Model?
People may be loyal to their car brands to varying degrees, but how loyal are they to the particular model they drive?
The Toyota Prius emerges as the model with the highest brand loyalty in 2023, replacing the Chevrolet Corvette on the 2017 list. When trading in and shopping for their next car, more than 38% of current Toyota Prius owners opted to purchase another Toyota Prius from CarMax. The Mercedes-Benz ML 350, a luxury SUV, takes second at 35%. The Ford F-250 (34.7%) also has a dedicated following, with one out of every three Ford F-250 owners selecting another F-250 at trade-in time. The Ford F-150 follows closely behind at 32.2% of owners opting to purchase again.
Compared to the previously published data, the variety of brands on the top ten model list was cut in half. The 2017 findings had eight brands represented and the 2023 data moves down to four (Toyota, Mercedes-Benz, Lexus, and Ford). Impressively, Mercedes-Benz is new to the 2023 list with three models ranking in the top ten. The ML 350 comes in second, the C 250 in sixth, and the E 350 in tenth.
When it comes to vehicle type, the previous report’s top ten list included three minivans while the 2023 list has none and is dominated by sedans, SUVs, and trucks.
Another noteworthy 2023 data point is the addition of the Toyota RAV4 Hybrid. Along with the Toyota Prius taking the top spot for model-loyalty in 2023, the popularity of these two vehicles among CarMax customers indicates a broader trend toward alternative fuel vehicles.
Do Customers Stick With the Same Type of Vehicle?
If someone drives an SUV, sedan, truck, or another type of car, how loyal are they to continue to repurchase that type of car?
Our data reveals CarMax customers' unwavering preference for SUVs. An impressive nearly three out of every four customers who trade in an SUV choose to remain loyal to this vehicle type, highlighting the sustained appeal of SUVs in the automotive market. Moreover, this dominance of SUVs has strengthened since 2017, soaring from 61 to 71 percent in 2023.
Following SUVs, four-door pick-up trucks are the next highest repurchased vehicle type (45.9%). Similarly, the popularity of all pick-up truck types remains steady with nearly half of all current pick-up drivers (46.8%) sticking with a truck for their next used vehicle purchase after trade-in.
Our analysis of the data confirms that CarMax trade-in customers are still about as brand-loyal as they were the first time we looked at the data with about 19% sticking with the same car brand, and 81% looking for a switch. There have however been some significant shifts in the brands and models that comprise the lists —with Toyota and the Toyota Prius being the make and model with the highest brand loyalty in 2023—as well as a rise in popular electric and hybrid vehicles. Lastly, when it comes to vehicle types, SUVs continue to rise in popularity among these repeat buyers.
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