People Still Coming Back to Toyota

2008toyotacamry

When it comes time to replace their old Toyota, most consumers say they buy a new Toyota.

Well, J.D. Power and Associates contacted nearly 170,000 new-vehicle buyers and says Toyota had a 64.6 percent retention rate among owners this year — that’s both a 1% gain from 2006 and the highest retention rate in the industry.

Toyota was followed by Lexus (63%), Honda (62.8%), BMW (58%) and Chevrolet (56.8%), the only domestic in the top five this year.

Chevrolet's retention rate rose from 55.3 percent a year ago. Ironically, Chevrolet displaced Scion — another Toyota brand — in the fifth spot. Scion plummeted to just a 30.8% retention rate, finishing near the bottom of the pack. That happened in large part because the xA was axed to make room for the new xD, but also because consumers say its number of offerings is too limited.

A wide variety of products, improved quality and more-appealing styling were the reasons cited for Chevy's rise in retention, said Neal Oddes, director of product research for J.D. Power.

The five brands that were the worst at retaining owners were Isuzu (1.5%), Mini (21.1%), Jaguar (24.5%), Pontiac (27.8%) and Scion (30.8%).

Isuzu’s rate is so low you have to wonder if it's on life support.

"It has had no new products recently, and no new ones are planned," Oddes said of Isuzu.

Power said automakers’ failure rates are significant because it costs four times as much to attract a new buyer as it does to keep a current one.

Toyota maintaining first place was a bit surprising because in the past few months the manufacturer has been the subject of multiple recall reports, leading its quality to be questioned. Some critics insist it’s growing so fast it’s making mistakes.

"We found that owners don't question Toyota quality unless they get a recall notice, and even then don't see recalls as a negative," said J.D. Power spokesman John Tews.

By Jim Mateja | December 11, 2007 | Comments (45)

Comments 

JM

guess izuzu isnt going to be here for much longer...that isnt a surprise though.

J

The Chevy number, are they counting the the heavy duty trucks? If not, then it should be a good sign for GM.

Ken L.

I guess the reason why Toyota’s retention rates are still so high, even with a few recalls, is because their customers either don’t view the recalled issue as too significant or that they’ve been burned by their past non Toyota ownership experience that a few recalls did not bother them. As for the bottom 5 retention rates:

Scion - Since most people buy this is as a starter car, I sure most moved on to either Toyota or Lexus, though I have no scientific data to back this up.

Pontiac – Most probably moved onto Chevy due to better designs, quality, and a wider selection (once again, no scientific data).

Jaguar – Most probably moved onto some other luxury brand (Lexus, BMW, Mercedes).

Mini – A starter car, most probably moved on to an entry level luxury car or some other trendy design.

Isuzu – Most simply moved on to anything else.

Paul

The reason I am on my third Toyota (previously a GM faithful) is the product quality is excellent and the dealer service second to none. Sure I've had a few recalls to deal with, but most of them the dealer would phone me and let me know that according to my VIN# and build date my car was not effected. He would then offer a free oil change for the inconvenience. My wife and I feel that when we report a problem, regardless of big or small, the dealer takes it seriously. I have never suspected my dealer to lie, something I can't say about my experience with GM and Ford.
My newphew now has my first Camry and it's still running strong at 165,000 miles. Other than a Honda, I can't imagine buying any other brand.

Vik

Paul- good to hear you've had a great dealership experience, but my experience differs, along with those of many others who have visited Toyota dealers. Of the Toyota dealers I've been to in IL, CA, AK, and MD, there have been more lying, cheating scumbags wh treat me like dirt among them vs. the Ford dealers I've been to. I now own a Lexus and am treated like royalty (or was when I was within the warranty period, now I goto an independent).

Sounds like you've just been lucky.

LM

Service departments at dealers and many non-dealers alike can be awful. Think about it, they are salesmen too trying to make bonuses etc. No matter the business, if you're selling something you're going to try and make the most buck.

I was at Best Buy the other night and this rep from Sharp was trying to hook me into one of their crappy TVs. It's everywhere - people trying to sell you things you don't need. Even if it's an inferior product.

People will buy a Scion for fun, then move up later on. It's hard to judge that brand right now because they're so new. To the majority of the U.S., it's only been around since 2005, and very few have been replaced. If you trade a new car in within 2 years its likely that you absolutely hated it and wanted something else. Hell, even leases last longer than 2 years. I'd read very little into the Scion number.

ermatthe

I'd say the Isuzu number probably has something to do with the fact that there haven't actually been any new ISUZU made Isuzus since 2004 when they made the last Rodeos. All of their vehicles now are rebadged GMs- the main difference being that the Chevy's and GMCs have a longer warranty on them now.

It's a shame really, Isuzu made some pretty good SUVs. I still use my '99 rodeo as a daily driver and it'll be hitting 170,000 within the month.

ermatthe

I'd say the Isuzu number probably has something to do with the fact that there haven't actually been any new ISUZU made Isuzus since 2004 when they made the last Rodeos. All of their vehicles now are rebadged GMs- the main difference being that the Chevy's and GMCs have a longer warranty on them now.

It's a shame really, Isuzu made some pretty good SUVs. I still use my '99 rodeo as a daily driver and it'll be hitting 170,000 within the month.

J

Paul,

I have to say that you are lucky to get such good service at your Toyota dealer, because the one that I go to has exactly the opposite. Which drove me to a Honda dealership instead of Toyota ever in my lifetime.

What would be interesting would be to see whether Scion buyers bought Toyotas. That was the entire point of the brand; to have people's first cars be Scions and their second cars be pricier Toyotas, not to keep them with Scions.

The same could be true to some extent of any multi-brand manufacturer. It should count as retention if someone trades in an Impala on a Lucerne, or an Accord on a TL.

Mark

TOYOTA is the product quality is excellent dealer service, while you wait for your car, they offered you with friendly donuts, coffee, and etc. Very fast services.

I just loved my TOYOTAS, 06 Camry, Rav 4 and Corolla. They are fuel economy..

I have never ever experience any problems 4 now.

Moving Forward! & this is my comments


Mark

I'm not finish yet. The reason I love TOYOTAS soo much......is the design of its cars. Its give u a keen look on the road. Can't wait for the new Corolla..TH3 3ND.

Mark

Plus...I noticed when i go for a dealer service. They also service other brand like domestic in TOYOTA, 4 some reason. hmm..

Hollywood

I just love my Honda and my Nissan. So fuel efficient and so sporty. i can't imagine how weird the Toyota Camry looks. Beleive it or not, but more and more people who have a Honda go and buy another Honda. What you see on the road is truth.

lm

You can't imagine how weird a Camry looks? They're everywhere, you shouldn't have to imagine them.

We should have an IQ tracker on here.

Hollywood

I never said I imagine. I know how they look, dumb ass!! They're weird. Period. weird looks, weird styling. By the way, they aren't everywhere like YOU think they are. if they are everywhere, then there would be no other car on the road besides them.

Toyota should put a check in the mail to Chrysler, since Chrysler designed the Camry. They should also put a check in the mail to GM/Saturn because the Scion tC coupe has designs of the Saturn Ion. The Toyota Camry has weird squares and angles and the front looks like a heater radiator taken out from someone’s house. It is so ugly. I’ve never seen such an ugly car like the current generation Toyota Camry!! The headlamps are soo weeiirrrddd and sooo are the tail-lamps!! The stlying is so much associated with Chrysler, or I should say Crapsler!!

denneth

Toyota always copy Honda. When Honda Accord came first then Toyota copy for Camry. When Honda Insight Hybrid came first then Toyota copy for Prius.

LM

The Prius was on sale in Japan in 1997, before the Insight.

LM

Who let the 8 year old out today? School isn't over yet!

Al

After a dozen Toyotas over more than 20 years I will NOT be returning to Toyota.

I used to be an avid Toyota loyalist, however my 2005 Avalon was plagued with build-quality problems, rattles, transmission hesitation, piston-slap and other issues.

The dealers have a foul attitude when it comes to service and Toyota Corporate push back when you call their customer service.

I dumped the Avalon after a few months, together with our rattling Sienna and we now have a Nissan and Honda, both of which have been outstanding.

This is one customer that will not be returning to Toyota.

Toyota has thrown away their "legendary" quality control, and buyers of the new models will be very disappointed to discover that the newly designed Toyotas are FAR INFERIOR to those they replaced. The only similarity is the name on the trunk and it is just a matter of time before many disappointed Toyota loyalists look elsewhere for a quality vehicle.

Ever wondered why you see so many nearly new Camrys accumulating on used car lots?

LM

You see the many used Camrys because they sell nearly half a million per year. Its bound to happen.

ZB

Honest dealers, regardless of brand, are very few in number. Very, very, very few in number.

I view Toyotas as ugly. I really can't name even one moderately attractive Toyota. Lexus is even worse, and the shapes seem to be out of proportion.

Toyota dealers serving donuts? That's a good one. What are they trying to do, clog your arteries? Tofu sounds much better.

What magazines do Toyota dealers have in their service department waiting rooms? No doubt something boring. An AARP magazine would be a no-no-- just too much excitement.

All dealers must choose the magazines in their service department waiting rooms. Articles about scam artists never make the table. Never!

LM

Oh come on - they serve donuts because most Americans would rather have a donut than tofu. I'm one of them (that $hit is nasty).

LM

Oh come on - they serve donuts because most Americans would rather have a donut than tofu. I'm one of them (that $hit is nasty).

ZB

Donuts are known to mess up your brain with clogged arteries.

You posted two identical posts. Better skip that next donut.

I just view Toyota drivers as more in tune as to what they're eating. They may talk about their last marathon while drinking bottled water.


The reason you see so many late model used Camry's on dealer lots is because of leases, and also Toyota is really selling a lot of fleet cars to all the rental agency's. I travel a lot and I see a lot of Tundra's, Rav4's, Camry's, Corolla's (a ton of them lately), Highlanders, and Sienna's. I wonder if their fleet sales is helping them achieve "record breaking sales" every month? I never have seen a Honda at the rental lot at the airport however.....

Mark

This is for LM comments> you don't have to buy toyotas or eat donuts. No one is asking you to buy toyota..
that's your decision. HAH

J

Mark,
You got hooked to the Toyota dealer by some mere donuts and coffee?
Shall I be happier if my Honda dealer put on a part for me without charging me labor?

LM

actually the dealer i had my service done at on Saturday had apples...i ate two of them. :)

apples are better than tofu. most things are better than tofu.

and bottled water is terrible for the environment. each bottle is basically a bottle of oil (plastic and transportation of water).

ZB

It's hard to find a good car dealer. Dishonest car salesmen and service departments make owning a car not such a fun experience.

I suppose a few good car dealers do exist, but I haven't found one. Some car dealers are better than others, but everything is relative.

If you're not well-versed in mechanics, you're likely to be billed charges that aren't warranted. Service departments love customers that aren't well-versed in mechanics. Women and minorities are too often easy prey.

Providing donuts and coffee, or even tofu, does not make a good dealer. You're paying for it with higher charges.

Then there's the attitude problem. Foreign car dealers do seem to have an attitude problem.

Earning your business from a foreign car dealer is of little concern, because these cars are such big sellers. Threatening to go elsewhere is a joke. As you step out of the service department door for the very last time, three new car buyers are entering the showroom door with their checkbook in their hand.

Brand loyalty with the foreign car may be there, but I don't know if there's such dealer loyalty.

I have no experience with luxury car dealers ( I have no desire to own a luxury car ), so you probably should receive the red carpet treatment, along with red carpet repair bills.

Per Olaf

Probably as Toyota is becoming the new Buick for baby boomers, they can retain their old customers again and again, nobody who wants a cool car wants to be seen in a Toyota.

About Scion, they are toy cars, so probably most of the young customers don't want to repeat.

ZB

"The new Buick for baby boomers." I think you're being much too kind. Make that Oldsmobile.

This is not your father's Toyota. It's your grandfather's Toyota.


LM

Actually, I think domestic car dealers have the bigger attitude problem. They still think they're #1 even though many of their products suck.

J

Hey! Don't think bad about Tofu!
It is crucial for vegetarians.

But I have to agree that most dealers are not too honest.

Carl

When Toyota was number second everybody forgave their mistakes like FJ Cruiser or the Tundra, or the ugly/bland designs, because Americans love an underdog, but now, when they are number one, everybody is looking and them, the same way they did to GM until now.

About dealers... I don't think any dealer is honest, but they also have a lot of help of a lot of customers not informed who want to buy a car with no money just to keep up with the Joneses.

Raye

well personally, as a former service tech for both domestic and foreign dealerships, I have to say that most customers have no clue about what happens behind the lines... and the old adage is true, you indeed get what you pay for. When you go to a dealer for service, you are paying for superior training and repair diagnostic equipment that independent shops have little to NO access to. So bad mouth us all you want but those independent shops call US when they have already screwed up your car for the fifth time trying to figure out the problem we would have solved today. And you WILL pay them for that extra time whether you realize it or not... as well as the inferior parts they put on your car. I hope you feel smart for your decision because we just sit back and laugh at your ignorance. We treat our repeat customers with respect because they do the same for us. And Honda has the BEST customer service in the business. Having working for both them and domestics, I can say I now would buy nothing other than a Honda or Chevy. I cannot however say the same for Toyota, Dodge and Ford. Keep buying those pieces of crap though because you keep us technicians paid.

panic

Raye... congrats on working for a quality service department. Many are not. It is where the fresh from community college (not knocking CC, since I am from there, too) kids go to get their feet wet. That is until they realize that at many dealerships, you get paid by the job, not by the hour. If you work for a busy dealership and can work faster and complete more jobs, then you will make more money. Not entirely a bad idea, since hard work should be rewarded. However, this causes many mechanics to do a quick half-@ssed job many times. Or, if you are perhaps not the speediest, but want to do a quality job, you will not make much money. This leads to discouragement with many mechanics.

As far as independents go, I generally do most of my own work, but when I need a shop, I have a couple high quality places to choose from. My favorite is a father/son team. The father is the old school type, while the son has an engineering degree. If they cannot fix it, it cannot be fixed.

Raye

With all due respect Mr. Panic, again you are misinformed. While yes dealers do tend to hire students from community colleges with two-year degrees, independent shops tend to hire grease monkeys from someone's backyard. And dealers take those CC students and immediately send them to factory training (but most CC students have already been co-oped into a factory training program to begin with.) Those independent shops are not even ALLOWED access to new vehicle training information for 5-7 years. And they generally can't afford to send their techs to training once they DO gain access to it. As far as engineers and old men, they might be able to fix old cars but they don't own the computers or software required to diagnose new ones. It is proprietary and unavailable to outside shops. It's just a fact I am sorry to inform you.

Hollywood

TOYOTA dealers have no sense of customer service!! They’re so lame!! They just try to avoid talking to you just like they try to avoid to fix your Toyota at their own cost, when it is under the warranty and when they do, they don’t do it fast. They just wear their pants up so high and chat amongst themselves, totally ignoring you!! And then you guys praise this. Oh please!! Either you are one of them TOYOTA dealers or you’re simply ignorant to move on to another brand that treats its customers like their own family.

Toyota also blames its own problems on other automakers through the mass media. ANYONE WHO LOVES A TOYOTA SO MUCH IS LAME!! Why?? Well, only the boring Toyotas are left on the market, and the sort of exciting models that once were are gone, so currently only boring Toyotas are available which are made for weirdos who wear their pants up so high. The Toyotas look so ugly......like boxes on wheels.....and they’re so outdated. They’re not even big like Toyota people claim them to be.

Here is a question addressed to Toyota Folks:
Why do you always compete with Honda? Why not compete with Volkswagen? Are you scared of Honda because it is much better than Toyota?

Technically, Honda is not at 63% with owners who stick to buy another Honda because where did the 0.8% come from in 62.8% since there is only one whole person, not eight tenths of a person. Come on, do the simple math here and see how they’re lying about Toyota!

Toyotas are for those people who are so stuck-up. Toyota can’t rely in its own designs. The 1997-2001 model years Toyota Camry has tail-lamps of the third generation Honda Accord hatchback. (The third-generation Honda Accord hatchback has tail-lamps based on the first-generation Accord hatchback, except updated.) Same thing with the current generation Toyota Prius. They based it on the car for the new millennium: The 2000 Honda Insight. Except Toyota added 4-doors and made it taller and narrower and made it for technically 4 passengers, while the Honda Insight, which was a predecessor of the highly fuel-efficient Honda Civic CR-X sporty hatchback two-seater.

The truth has been revealed: Toyota ain’t capable of being independent and not having to look at the designs of previously designed cars. If it wasn’t for Acura in 1986, there would never have been a Lexus brand.

So instead of bashing Honda and competing against Honda, thank Honda for many inventions and designs in the automotive world.

What’s true is true, and what’s true is also seen on the road the most!!

Scions came out for Toyota to gain sales since its Toyota and Lexus Divisions don’t sell cars well. Even with Scion, Toyota is still lame and boring. They make cars for stuck-ups and braggarts who are so stuck-up for society to tolerate them, so they think that Toyota is the answer and they brag so much about how Toyota is the best, but it clearly isn’t. THE TOYOTA YARIS LOOKSLIKE AN EGG AND SO DOES THE SCION xA & THE SCION xB looks like a box.

I would recommend the Honda Civic Si because after test driving it, it is the truest sports coupe. I just love it. It has a high-revving engine and the faster you drive, the more stable it becomes, unlike some cars I drove in the past that when you drive at high speeds, you have no feeling where you’re steering and you feel as if you’re not driving on pavement, but rather flying in the air, but not the Honda Civic Si coupe!! I just love that car!!

I’m sorry Toyota Folks, I don’t want this to offend you, but it is the truth. So don’t take it like it is the end of the world.

Hollywood

HONDA HAS THE BEST CUSTOMER SERVICE IN THE BUSINESS!! HONDA IS #1!!!

Hollywood

HONDA IS THE #1 AUTOMAKER!!

These are funny, lol. Hollywood, I thought nissan was your brand? Oh wait, I forgot to capitalize it, lol, Nissan. :)

Everyone should get a life, drive what you want to and stop trying to criticize others for what they drive. If you don't like it, no one is making you buy it. Imagine a world where we all drove a silver appliance that was exactly the same- that sucks to me.

J

Hollywood,

"TOYOTA dealers have no sense of customer service!! They’re so lame!! They just try to avoid talking to you just like they try to avoid to fix your Toyota at their own cost, when it is under the warranty"

I know exactly what you are saying, because I had personal experience with that, and that is the main reason that NEVER another Toyota at my driveway.
My mom had a 99 Totoya in 2002. It had rust on the body before 2004, and the dealers didn't say anything about fixing it even we have brought it in for service all the time.
What makes it more ridiculous is: It was only a 4 year old vehicle, but already had rust!

nady

the current Camry always reminds me of that comedian singer Jimmy Durante with his huge nose. Was some Toyota designer just watching old Durante TV shows for inspiration ?

rangerxlt

"The Toyota Camry has weird squares and angles and the front looks like a heater radiator taken out from someone’s house. It is so ugly. I’ve never seen such an ugly car like the current generation Toyota Camry!! The headlamps are soo weeiirrrddd and sooo are the tail-lamps!!"

Hollywood

The front end reminds me of a radiator too. (and yes this car is ugly)

"The stlying is so much associated with Chrysler, or I should say Crapsler!!"

Hollywood

That is the funniest comment I've read today.

"Imagine a world where we all drove a silver appliance that was exactly the same- that sucks to me."

Anonymous

The silver appliances you're referring to are silver Toyota Camrys.

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