Customers Remain Loyal To Same Car Brand Less Frequent Than Years Past

MIAMI, Aug. 12 /PRNewswire/ -- Customer retention studies have been widely used in the auto industry but what does the picture look like without dealer incentives or Cash for Clunker promotions? When shopping decisions aren't based on aggressive showroom incentives, LeaseTrader.com believes customer retention for many brands is actually much lower than previously reported.

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LeaseTrader.com, the most popular matchmaker for car lease transfers, analyzed data from customers that recently changed vehicles to see how often they stuck with the same brand. LeaseTrader.com facilitates a consumer-to-consumer lease transfer at any time during the contract without dealer involvement, so people aren't swayed by dealers eager to sweeten the pot with incentives that often keep them in the same brand's garage. According to leading reports that study newly purchased vehicles, the industry average for customer retention is roughly 48 percent. LeaseTrader.com found this average closer to 22 percent.

Illustrating favorable emotional attachment, brand retention for many high-end imports remains high and most domestic brands place towards the middle and low end, with a few notable exceptions. According to LeaseTrader.com, brand retention leaders are Mercedes (53.2%), Honda (51.7%) and BMW (50.6%), with the bottom three being Saturn (9.2%), Mercury (8.4%) and Pontiac (7.9%). Other noteworthy domestic brands were Ford (34.8%), Cadillac (32.7%) and Buick (28.2%) in the top 10.

"Years ago you had generations of families that would stick with one brand for decades," said Sergio Stiberman, CEO and founder of LeaseTrader.com. "Brand attachment has changed over the years and today people are mostly driven by incentives dealers provide at the time of trade-in. LeaseTrader.com customers search for their next car based more so on brand attributes since they're not shopping at the time of vehicle trade-in."

LeaseTrader.com allows people to change cars before their contract expires by matching them with a credit-qualified individual that takes over the remaining portion of the lease.

About LeaseTrader.com

LeaseTrader.com easily and affordably matches car shoppers with individuals looking to transfer their auto lease. Privately held and founded in 1998, LeaseTrader.com is headquartered in Miami. For more information follow on Twitter @Lease_Trader, visit http://LeaseTrader.com, or call 800-770-0207.

SOURCE LeaseTrader.com

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