AwardsUSA

Lexus Ranks Highest for Luxury Brand Loyalty in the USA

Lexus JD Power 2020 LS

Lexus is the highest ranked luxury manufacturer in the J.D. Power USA Automotive Brand Loyalty Study for the second year in a row, with 48% of buyers returning to purchase or lease another vehicle from the brand. Let’s see how Lexus ranked alongside its competitors:

Lexus Brand Loyalty

The study used proprietary data to calculate whether an owner purchased the same brand after trading in an existing vehicle. Calculations are based on transaction data from June 2019 through May 2020 and include all model years traded in.

James

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Yeah I can see it. As much as I complain about Lexus and lack of “new” options it’s still hard for me to truly switch. Honestly I guess next year will be a big deal as I have looked around more than ever these past few months. Hopefully LF1 or LX is new next year!
On another note I still feel like Lexus treats you better compared to others. I’ve been to Audi and Benz and the dealers just don’t feel the same to me with customer service and such.
Good job Lexus on this. I mean if we can have old models and people still return what’s it going to be if we actually get some updated models?
 

zeusus

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Time and time again it is proven that however Lexus is perceived by "enthusiasts" is not the way it is perceived by general consumers, no matter how many anecdotes ("well all of my friends aren't happy with x,y,z...") are applied.
 

Mr1956T

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Fully agree. Own two 'old' Lexus over here in Ireland. One is an IS200 from 2004, and the other is a GS250 F-Sport from 2013. Never bought a new one, never bought a car from the dealer that has looked after me now for over 9 years - Lexus Belfast. Service is unmatched - really made to feel that they care about you - that they appreciate your business. Numbers don't define it.
 

Gecko

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Time and time again it is proven that however Lexus is perceived by "enthusiasts" is not the way it is perceived by general consumers, no matter how many anecdotes ("well all of my friends aren't happy with x,y,z...") are applied.
I challenge you to present your opinions without baiting other people. Thanks.
 

Gecko

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Great news for Lexus, and I think this is a perfect example of how well the company knows their customers. Most Lexus shoppers value reliability, quality, a strong dealership experience and hassle-free ownership, and those are still things they do better than any other brand. 👏
 

Sulu

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Time and time again it is proven that however Lexus is perceived by "enthusiasts" is not the way it is perceived by general consumers, no matter how many anecdotes ("well all of my friends aren't happy with x,y,z...") are applied.
I agree. No matter how enthusiasts like to believe they represent the "common car buyer", I believe that there is a (great) gulf between the two cohorts.
 

internalaudit

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Surprised if most people are just leasing. I guess they value the time they don't have to spend driving to and waiting at the dealership or mechanic.

It's not like we have family drivers in OECD nations, like some of the developing countries affluent households do.
 

James

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Surprised if most people are just leasing. I guess they value the time they don't have to spend driving to and waiting at the dealership or mechanic.

It's not like we have family drivers in OECD nations, like some of the developing countries affluent households do.
You know it's funny I just leased my GS and I do have times when I think man I could lease anything because what will really break in 3 years but it's nice having the option that if I want to buy I have something that I know will run for a long time. My parents have an 05 RX and maybe 06/07 ES and they both have 200k on them and still work great. I treat my leased GS like I own it just in case I keep it. But I agree with you if you just lease most I'm sure don't care about really anything on reliability.
 

Rob Grieveson

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Lexus is simply unique, different, and trouble free. No one else can claim these three attributes and then of course the service offered is very good indeed. If one buys one of the Germans there is a similarity between them all to the extent is it a BMW Merc oh no its an Audi.
Porsche is also unique imo.
 
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The thing is modern Mercedes' and BMW's for a long time have been pretty stout cars. Adding in the newest technology (read electronics) are always something to be concerned about in any car though but in terms of overall chassis, engine and transmission design are not something that people should really be afraid of. Sure, maintenance costs for a German vehicle are pretty high but so are Lexus vehicles to their own extent.

Leasing a Mercedes or a BMW is certainly not the worst idea. There are also people who do buy Mercedes and BMW's but those are the ones who are not planning to get a new car after their lease deal is over. In fact, they were never really bad vehicles to start with. There are some exceptions though.

It's not like these brands have been perfect though and I understand people's fears when it comes to some German vehicles and for good reason.

When it comes to BMW, their NA V8 and the NA V10 M cars were a ticking time bomb, some of the older automatic transmissions that BMW used as well were pretty weak, their dual-clutches are pretty clunky around town and have been reported with some issues and electronics do exist as well, but honestly, you won't have any of those issues. The NA V8 and NA V10 engines are yesterday's news so you don't have to worry about that. The ZF 8-speed transmission that's in all modern BMW's is simply quick, comfortable, and bulletproof reliable. The only thing is electronics but after some time that stuff gets ironed out too. Also you have the warranty to protect you if some ungodly event happens by accident.

As for Mercedes, like BMW there isn't anything really bad to say about them unless you're talking about some of the electronics again or some older cars that were absolutely a pain in the a** to deal with in terms of reliability. Mercedes also does iron out their issues over time. It's not bad. And if something bad happens, you have a warranty.

Mind you, these issues can happen to Lexus vehicles as well. In the modern era of the automotive industry, manufacturers are converging when it comes to reliability. We're reaching to a point where a lot of elements of a car be the car's chassis, engine, transmission and overall driveline are solidly built. To this day there are still exceptions to the rule like FCA (Fiat, Alfa Romeo, Chrysler, Ferrari, Maserati), some Ford and Chevrolet vehicles, Aston Martins (which without Mercedes' help they would be worse off), Nissan, etc..

Just give some love and respect to a Mercedes or a BMW like you would to your Lexus and they stay pretty solid for quite a long time. They won't last as long as an old Toyota which lasts for like 567 years but heck you're talking about two completely different things here. I feel like people do confuse with maintenance costs with reliability a lot and those maintenance costs won't be so bad if people aren't idiots around cars in the first place.

As for other German brands, Porsche is almost the most reliable brand out there full-stop so there's nothing much to worry about unless you want to do maintenance. VW isn't that bad but they're known to have issues in some of their cars as do Audi's.
 
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suxeL

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I think this survey shows how opinions and facts have little to do with how loyal a person is towards a particular brand.

For instance Lexus, I dislike the interior infotainment in a lot of models currently in the lineup, and yet as a whole that has not really affected the loyalty; folks are not jumping ship due to that singular flaw.

On the flip side, I think Mercedes and other german vehicles are made to last till warranty, and yet with all those issues, they`ve only lost only between .2-5% of their current loyal base?

I`m surprised we have not seen brand loyalty amongst tesla owners?
 
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I think this survey shows how opinions and facts have little to do with how loyal a person is towards a particular brand.

For instance Lexus, I dislike the interior infotainment in a lot of models currently in the lineup, and yet as a whole that has not really affected the loyalty; folks are not jumping ship due to that singular flaw.

On the flip side, I think Mercedes and other german vehicles are made to last till warranty, and yet with all those issues, they`ve only lost only between .2-5% of their current loyal base?

I`m surprised we have not seen brand loyalty amongst tesla owners?
I have to say I agree with what you say here. Lexus needs to again try to out-develop their competition. It would really help them again in the long run. Just like they out-developed everyone else in the early 2000's and kept Lexus competitive until today.

Also I wanted to add, contrary to popular belief, German cars do last longer than you think. Even after their warranty expires.
 

Rob Grieveson

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I believe it is very difficult to compare the sales success of Lexus against Mercedes and BMW the reason being that the German brands offer a very complete range of vehicles from reasonable price points to very expensive. Lexus rely on Toyota to compete on the lower rungs so to be fair one should combine total sales of the Toyota Group against Mercedes, BMW and VW inclusive of all their sundry brands.
i think it will then be between Toyota and VW in terms of sales volume. Mercedes and BMW will become distant third and fourth place.
 

suxeL

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I have to say I agree with what you say here. Lexus needs to again try to out-develop their competition. It would really help them again in the long run. Just like they out-developed everyone else in the early 2000's and kept Lexus competitive until today.

Also I wanted to add, contrary to popular belief, German cars do last longer than you think. Even after their warranty expires.
I`m happy you agree, but I think that my original post was more about loyalty and competitiveness/reliability are not directly related. The lack of development in Lexus vehicle powertrains, infotainment, crappy lease programs should have resulted in folks leaving the brand in droves, yet here from the figures it seems Lexus has no such problem. On the flip side we see the majority of non german brand owners screaming from hill tops that german brands produce unreliable cars, and no one has time to become besties with their service tech->eventually leading to their downfall etc...yet here the numbers on loyalty say otherwise.

I think german brands like bmw, mb, and audi make excellent vehicles. When I step into one, the interior seems like it came out of the future; ambient lightning, crisp lines, screens everywhere, and things that are somewhat mundane issues that no one really pays attention to gets attention (for instance BMW and their magic radio presets). Their powertrain, especially the I6s and v8s really give you something to smile about. The problem is that I`m not a fan of their maintenance schedules. Owners need to be as meticulous as the engineers who designed the vehicle about those things, or you end up on the side of the road.
 
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I`m happy you agree, but I think that my original post was more about loyalty and competitiveness/reliability are not directly related. The lack of development in Lexus vehicle powertrains, infotainment, crappy lease programs should have resulted in folks leaving the brand in droves, yet here from the figures it seems Lexus has no such problem. On the flip side we see the majority of non german brand owners screaming from hill tops that german brands produce unreliable cars, and no one has time to become besties with their service tech->eventually leading to their downfall etc...yet here the numbers on loyalty say otherwise.
Definitely. I was just simply saying that Lexus would have even more sales than what they have right now if they weren't so lazy. So rather than having a small improvement in retention rate, you'd have way larger gains because the manufacturer is actually trying to build competitive products. The reason why Lexus was the bestselling luxury brand back in the day was because including the fact that they were reliable, they beat the competition too.

I think german brands like bmw, mb, and audi make excellent vehicles. When I step into one, the interior seems like it came out of the future; ambient lightning, crisp lines, screens everywhere, and things that are somewhat mundane issues that no one really pays attention to gets attention (for instance BMW and their magic radio presets). Their powertrain, especially the I6s and v8s really give you something to smile about. The problem is that I`m not a fan of their maintenance schedules. Owners need to be as meticulous as the engineers who designed the vehicle about those things, or you end up on the side of the road.
I agree. ^^
 

Sulu

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Definitely. I was just simply saying that Lexus would have even more sales than what they have right now if they weren't so lazy. So rather than having a small improvement in retention rate, you'd have way larger gains because the manufacturer is actually trying to build competitive products. The reason why Lexus was the bestselling luxury brand back in the day was because including the fact that they were reliable, they beat the competition too.
I would just like to say that "better" Lexus models (especially when "better" is defined by enthusiasts) is no guarantee that retention rates will climb... unless you have insider information that the rest of us do not, and know the exact reason(s) why Lexus' retention rate is not higher than it is.
 

mikeavelli

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2019 ES F-Sport and LC here..... Factors
1. Great company, happy to support the company with a purchase.
2. Hardly any issues. If they are any its taken care of.
3. No glaring faults with vehicles for us. Most are personal preferences.
4. We like how they look inside and out.
 
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