Overview
U.S. dealerships have lost 12% of their share of service visits since 2018 as more owners turn to independents, chains, and mobile providers. This erosion in fixed operations threatens not only service revenue but also future vehicle sales that depend on retained service relationships.
By the numbers
- Average vehicle age trending to 12.8 years in 2025 (more repair opportunities).
- Service and parts generated $156B in 2024; fixed ops = 13.2% of dealership revenue (up from 12.4% in 2023).
- Loyalty drop: only 54% of 0–2 year owners returned to their purchasing dealer in 2025 (down from 72% in 2023).
- Sales linkage: 74% who service at the dealership would buy their next vehicle there.
- Satisfaction gap: 45% report unhappiness with dealer service (unexpected costs, poor communication).
- Price perception vs reality: average dealer repair bill $261 vs $275 at general repair shops.
- Digital expectations: 55% say online price comparison is very important.
- Trade-in moment: over half facing a major repair would consider a trade, yet few receive an appraisal offer.
What’s driving defection
- Experience issues—unexpected costs, unclear timelines, and weak communication—outweigh price differences.
- Convenience from independents and mobile providers (quicker appointments, streamlined interactions).
How dealerships can respond
- Make pricing transparent: publish and enable online comparisons; provide itemized, upfront estimates.
- Digitize the journey: easy scheduling, mobile-friendly updates, and approval workflows to reduce surprises.
- Improve communication: proactive status, timing, and cost updates; explain why work is needed before starting.
- Boost convenience: pickup and delivery, rideshare/loaner options, and frictionless check-in.
- Link service to sales: routinely offer appraisals during major repair visits to capture trade-ins and source inventory.
- Align teams: tighten sales–service coordination to retain customers and protect future purchases.
Why it matters
Fixed operations are a steadier revenue pillar than vehicle sales, but their long-term value hinges on maintaining relationships. As the serviceable vehicle pool grows with an aging fleet, dealers have a near-term opportunity to regain share by focusing on transparency, digital convenience, and integrated sales touchpoints.
