Stand By Your Crossover: Loyalty Skyrocketing Among Utility Owners, Study Finds

Steph Willems
by Steph Willems

What’s big these days? You know the answer. Avocados. Leasing. Saying “it me” on Twitter. But above all else, crossovers and SUVs.

Not only have utility vehicles become the driving force in the North American automotive marketplace, ownership of these versatile vehicles is apparently becoming harder and harder to quit. More than ever, owners of crossovers and SUVs find themselves bolting from their old utility vehicle into a brand new one.

As for sedan buyers, never has love drained so quickly from a relationship.

A just-published study by IHS Markit shows what surging, and seemingly unstoppable, utility sales have already implied. Americans are in love with their car. More specifically, they’re in love with the country’s hottest bodystyle — one that’s increasingly hard to say “no” to after having a taste.

Since overtaking passenger cars just one year ago, the utility vehicle segment has only continued gobbling up more market share, relegating cars to an ever-distant second place. In the first half of 2017, passenger cars amounted to 36.9 percent of U.S. sales. Meanwhile, crossover and SUV sales ate up 41.4 percent of the market. Remember, just last year the two segments were tied.

In the first four months of 2017, U.S. car owners who returned to the market provided ample evidence for the continuation of this trend.

Of the SUV and CUV owners who went shopping between January and April, 66.2 percent of them hopped into another utility vehicle, IHS Markit found. The loyalty rate within that segment far outstrips the industry average of 52.6 percent. Not only do two-thirds of utility owners now go home to their wife, ever greater numbers of them are doing so. Five years ago, the SUV loyalty rate was 52.9 percent.

Compare that to sedans, which saw customer loyalty drop from 56.2 percent in 2012 to 48.6 percent in April of this year. While the sedan segment stands to shrink further, automakers can’t dream up enough new crossover and SUV models. Utility vehicles offer companies salvation in a slowly sliding market.

“The exceptionally high loyalty of SUV/CUV households is driven by continued proliferation of crossover models across a wide range of size, price and functionality,” said Tom Libby, manager of automotive loyalty and industry analysis at IHS Markit, in a statement. “In some cases this proliferation has resulted in two or even three models in the same segment from the same brand.”

Why offer just a Rogue when buyers might also prefer a slightly smaller Rogue Sport? Why wouldn’t a compact Outlander Sport demand the addition of a compact Eclipse Cross as well? Maybe a lineup already home to the Escape, Edge, Explorer, Flex, and Expedition isn’t complete without an EcoSport and Bronco?

As automakers struggle to fill in any perceived gaps in crossover coverage, another segment has also seen its customer loyalty soar: trucks. In April, 50.9 percent of pickup owners traded in their old truck for a new one, up significantly from 42.5 percent in 2012. Coupe, van, convertible, and hatchback loyalty, by comparison, all increased by a very slight margin — though the growing demand for utilities among first-time buyers means you’re seeing fewer of these vehicles on the road.

[Image: Honda]

Steph Willems
Steph Willems

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  • Detroit-X Detroit-X on Jul 13, 2017

    Are divorcing couples fighting over their crossovers now?

  • Mchan1 Mchan1 on Jul 13, 2017

    Do people like their branded CUV vehicle or the CUV segment in general? Finally got a chance to drive a Toyota XLE Rav4 FWD while revisiting Houston. It was a decent vehicle that handled and drove relatively well and a tall person (6ft) can fit in relatively well. It perform better in Sport, not default Eco, mode. The issues I had was that it had terrible blind spots, even with the side mirror lenses, and the cushioning was barely acceptable though it did lack lumbar support. Didn't gauge the fuel economy but it didn't suck up gas much with mixed city/hwy driving, even on Sport mode. Wonder how it would've handled with AWD or as a hybrid? IF I was looking for a CUV, I'd like at the newer Rav4, Rogue, Tiguan or CRV though I'd prefer the hybrid model which currently limits it to the first 2 models. I can see why people like the CUVs though the higher cost is still an issue as well as the reliability and fuel efficiency of the vehicles.

  • The Oracle Well, we’re 3-4 years in with the Telluride and right around the time the long term durability issues start to really take hold. This is sad.
  • CoastieLenn No idea why, but nothing about a 4Runner excites me post-2004. To me, they're peak "try-hard", even above the Wrangler and Gladiator.
  • AZFelix A well earned anniversary.Can they also attend to the Mach-E?
  • Jalop1991 The intermediate shaft and right front driveshaft may not be fully engaged due to suspected improper assembly by the supplier. Over time, partial engagement can cause damage to the intermediate shaft splines. Damaged shaft splines may result in unintended vehicle movement while in Park if the parking brake is not engagedGee, my Chrysler van automatically engages the parking brake when we put it in Park. Do you mean to tell me that the idjits at Kia, and the idjit buyers, couldn't figure out wanting this in THEIR MOST EXPENSIVE VEHICLE????
  • Dukeisduke I've been waiting to see if they were going to do something special for the 60th Anniversary. I was four years old when the Mustang was introduced. I can remember that one of our neighbors bought a '65 coupe (they were all titled as '65 models, even the '64-1/2 cars), and it's the first one I can remember seeing. In the '90s I knew an older gentleman that owned a '64-1/2 model coupe with the 260 V8.
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