In the old days, a guy drove a Chevy truck, bought his wife a Chevy car, traded in his Chevy truck for a newer Chevy truck and made sure his kids drove nothing but Chevys.
When those kids grew up and could think for themselves, though, they probably decided to rebel by buying a Camry, or if they really wanted to tick off the old man, a Sonata. Chances are, those kids leased their new cars and thus developed a loyalty to their new brand, albeit a loyalty based on the convenience of renewing a lease.
Today, the idea of brand loyalty is becoming as antiquated as the 4-speed manual transmission. With so many quality choices in modern cars, why choose to stick with one particular brand?
Leases are great for car companies, because they are so easy to convert into new leases. A dealer is virtually guaranteed that a lease customer will be back on the showroom floor within three years, ready to sign on another new vehicle. A story on Automotive News says the number of leases has dropped significantly, which means the number of people loyal to a single brand has also dropped.
According to the story, people who lease vehicles return to another lease with the same brand 63 percent of the time. People who bought their previous vehicle only return to the same brand to buy another vehicle 39 percent of the time. Here’s the question I’m curious about: Are the people who lease the same brand again doing it because they loved the car so much, or because it’s more convenient than starting over somewhere else?
On the consumer side, a lack of lease returns could mean fewer used options to consider. Vehicles sold after a lease are a large source of used cars for dealers, and usually are quality options for buyers looking for certified used cars or high-quality late-model vehicles. If you’re in the market for a used car, be sure to browse the CarGurus used listings to find the best deal.
Are you loyal to one car brand? Do you lease or buy your vehicles?