U.S. dealerships are losing service customers at a steady pace, even as demand for repairs continues to rise. According to Cox Automotive’s 2025 Service Industry Study, dealers have lost 12 per cent of service visits to independent competitors since 2018, signalling challenges in customer retention.
The shift comes as the average vehicle on American roads trends towards 12.8 years in 2025, which is more than 2024’s 12.6 years. Older vehicles require more maintenance, driving up overall repair volume. In 2024, dealerships generated more than US$156 billion in service and parts revenue, completing over 270 million repair orders, according to NADA. Fixed operations now account for 13.2 per cent of dealership income, up from 12.4 per cent in 2023.
Despite this growth, fewer owners are returning to the stores where they purchased their vehicles. In 2025, only 54 per cent of drivers with vehicles two years old or newer serviced at their selling dealership — a steep drop from 72 per cent in 2023. Cox Automotive notes that customers who service with a dealership are 74 per cent more likely to buy their next vehicle there, putting future sales at risk.
Much of the dissatisfaction stems from unexpected costs and weak communication. While dealership repair bills average US$261, lower than the US$275 average at independent shops, nearly half of owners remain frustrated by unclear pricing and limited transparency. More than 55 per cent of respondents say being able to compare service costs online is “very important.”
The study suggests digital tools, such as improved scheduling, clearer pricing, and enhanced communication, could help dealers rebuild trust. It also highlights the service lane as an underused source of used inventory, noting that more than half of owners facing major repairs would consider trading in if approached.
