• by Karl Greenberg , December 9, 2010

Forget resale value, new-vehicle owners say fun cars and trucks is what makes them loyal to brands. So which brands benefit from the syllogism "If most fun equals most loyal, and brand x has the most loyal customers, then brand x has all the fun cars"? The new J.D. Power and Associates 2010 Customer Retention Study released today, says Ford and Honda are giving their owners a thrill.

Ford and Honda rank highest in a tie among automotive brands in retaining vehicle owners, with each retaining 62% of owners.

The study, in its eighth year, measures the rate at which automotive brands retain their existing customers and the reasons why owners remain loyal. Customer retention is critical to a brand's market success, particularly during the current period of slow recovery, in which each new-vehicle sale is vital. The study finds that the importance of fun-to-drive vehicles as a reason for owner loyalty has increased by eight percentage points in 2010, compared with 2009. Meanwhile, the importance of resale value as a reason to stay loyal has decreased by 10 percentage points from 2009.