From Inspection to Impact

Vehicle inspections play a central role in dealership service operations, providing the foundation for assessing vehicle condition and guiding maintenance recommendations.  

As digital tools become more deeply embedded in the service workflow, inspections are generating richer data and stronger insights.  

Video, structured data capture, and artificial intelligence are enabling more consistent documentation, clearer communication, and greater visibility into how inspections are performed.  

The shift comes at a time when dealerships are placing increased emphasis on fixed-operations performance, elevating the inspection process as a measurable contributor to both operational efficiency and revenue. 

It's Come a Long Way

The earliest inspection processes were manual and highly variable. Technicians worked from paper forms, checking off items such as tires, brakes and filters, while service advisers translated those findings into recommendations for customers.  

The quality and completeness of inspections often depended on the individual technician, and communication gaps were common. The transition to digital multipoint inspections introduced consistency, creating standardized workflows and centralized records of vehicle condition.

Even with these improvements, however, the customer experience still required a level of trust, as vehicle owners were asked to approve work based on descriptions rather than direct evidence. 

The Video Factor

The introduction of video reshaped that experience. By enabling technicians to visually demonstrate vehicle conditions, video inspections created a more transparent and engaging interaction. Customers could see worn components, hear explanations in real time, and better understand the rationale behind recommended services.  

The shift elevated inspections into one of the most important touchpoints in the service journey, directly influencing how customers perceive the dealership and its recommendations. 

The evolution comes at a critical time, as customer expectations continue to rise. Service shopper data shows that 31% of vehicle owners say they are doing everything possible to extend the life of their vehicles, making maintenance decisions more deliberate and value driven, according to a recent CDK survey of service customers. 

At the same time, digital trust signals have become increasingly influential, particularly among younger generations. More than 75% of generation Z and millennial customers rely on reviews when choosing a service provider, underscoring the importance of trust and transparency in every interaction, according to the survey. 

OEMs have accelerated the adoption of video inspections by establishing utilization expectations across dealer networks. Early programs helped set the stage, and broader adoption by manufacturers reflects how quickly video has become standard practice.  

As adoption matures, attention is shifting toward execution. Dealers are focusing on how effectively inspections are performed and how clearly they communicate findings to customers. 

New Tech

The change has led to the emergence of quality measurement frameworks, such as artificial intelligence and machine learning, to evaluate inspection performance based on clarity, completeness and communication effectiveness. Early results show customers who engage with a high-quality, scored inspection approve approximately $130 more per repair order.  

AI is further expanding the capabilities by introducing a new level of precision and consistency into the inspection process. Advanced tools are being developed to analyze inspection content, identify whether critical components are captured, and assess how effectively technicians explain findings.  

Measurement capabilities can estimate elements such as tire tread depth, while wearable technologies allow technicians to capture inspections more efficiently.  

Together, the innovations are helping reduce variability, which has historically been one of the biggest challenges in dealership service operations. 

As inspections become more measurable, they are also becoming more manageable. Quality scoring introduces a structured way for service leaders to evaluate technician performance and identify opportunities for improvement.  

That creates a continuous feedback loop in which best practices can be reinforced, training can be targeted, and performance can be benchmarked across locations. For dealer groups, that level of visibility allows for greater consistency and scalability, turning inspections into a repeatable driver of operational excellence. 

Inspections' Value

The business impact of inspections extends well beyond the service lane itself. Today, inspection performance is closely tied to three key business outcomes: 

• Higher service approval rates driven by clearer communication and stronger customer understanding 
• Increased average repair order value as more recommended work is validated and approved 
• Improved customer retention, as transparency reinforces trust and encourages repeat visits 

Dealers utilizing videos from technicians are seeing an average 29% increase in hours and a $152 average increase in parts-and-labor revenue per repair order, according to data compiled by CDK and industry partner TruVideo. 

That includes a 41% increase in labor revenue (an additional $83 per order) and a 34% increase in parts revenue (an additional $69 per order), underscoring how video-enabled inspections directly drive measurable financial performance.  

Inspections also help reduce friction in the service experience. Customers frequently encounter obstacles, such as long phone wait times and complex scheduling processes. Nearly a quarter of customers report waiting nine minutes or longer on hold when booking appointments, often encountering additional friction, such as navigating phone menus or being transferred between staff. 

While inspections often occur later in the journey, they represent a critical point when clarity can eliminate uncertainty. By presenting straightforward, visual evidence, they make it easier for customers to make informed decisions without hesitation.  

Aligning It All

Despite rapid advances in technology, the effectiveness of inspection strategies continues to depend on the alignment of people, process and tools.  

• Technicians must be equipped to communicate clearly and confidently, using video to explain vehicle conditions in a way that resonates with customers.  
• Service departments must implement consistent workflows that ensure inspections are performed thoroughly and delivered in a standardized manner.  
• Technology must integrate seamlessly into daily operations while providing insights that support continuous improvement.  

When those elements come together, inspections move from being a routine task to a scalable driver of performance. 

Looking ahead, the role of inspections will continue to expand as data and AI capabilities mature. Inspections are increasingly becoming a foundational data layer within fixed operations, offering insights into vehicle condition, technician execution and customer behavior.  

As predictive capabilities develop, inspections will begin to inform not only current service needs but also future maintenance planning, enabling more proactive and personalized engagement. 

The transformation of vehicle inspections reflects a broader shift within dealership service operations. What was once a routine procedure has become a strategic asset, and one that connects technical expertise with customer understanding, strengthens trust, and delivers measurable business value.  

As dealerships navigate a more complex and competitive environment, the ability to execute high-quality, data-driven inspections will play an increasingly central role in driving operational performance and long-term growth. 

LEARN MORE: Service Drives Gen Z Loyalty

Kim Saylor is senior director of fixed operations at CDK.

EDITOR’S NOTE: This article was authored and edited according to Providers & Administrators’ editorial standards and style. Opinions expressed may not reflect that of the publication.