Auto Dealers Losing Service Customers
Study finds that though overall service drive revenue is up, loyalty is eroding

The service lane can be a source of used vehicles to add to dealer inventories if dealers share autos' value with customers on their visits.
Pexels/Malte Luk
Auto dealers’ service departments are being touted as a key way to shore up profits amid a churning sea of economic challenges, but recent research found they’re bleeding customers.
The Cox Automotive study uncovered a trend of declining customer visits to dealer service drives. Compared to 2018, dealerships are drawing 12% fewer customer service visits. Instead, many customers are tapping repair shops, quick oil change providers, and mobile services, according to its research.
The study uncovered dissatisfaction among dealer service customers that’s making them less loyal.
The loss in business comes despite the fact that dealers are taking in more revenue from service and parts as vehicles age, Cox said, citing National Automobile Dealers Association data that indicate dealers took in $156 billion via the revenue stream in 2024, or 13% of dealership revenue, up a percentage point year-over-year.
The average U.S. vehicle has been getting older for a while and is now at nearly 13 years, a trend that has helped boost dealer service revenue. But dealers are actually losing service business the most for vehicles 5 years old and newer, Cox found. This year, just 54% of consumers with vehicles 2 years old or newer returned to the dealership where they bought them for service, down sharply from 72% in just two years.
The phenomenon means dealers lose not only service business but also future auto sales, said Cox. It indicates that consumers who take their cars for servicing at a dealership are 74% more likely to buy their next vehicles at that store.
“These findings from our market data and surveys underscore the urgent need for dealerships to reassess their service strategies to recapture market share and enhance customer retention,” said Cox Director of Product Consulting Skyler Chadwick.
Of survey respondents, 45% expressed frustration with dealership service visits, primarily citing unexpected costs and lack of communication. That’s despite Cox data showing dealership repair bills this year average $261 versus $275 at repair shops. Consumers told it they want clear pricing, scheduling ease and service flexibility. More than half also value the ability to compare costs online.
In addition, the service lane can be a source of used vehicles to add to dealers’ inventories, especially harder-to-find models, Cox says. It advises them to share vehicles’ values with customers when they visit for service to facilitate possible purchases.
“Dealerships are sitting on a goldmine – over half of customers facing major repairs would consider trading in—yet most are never approached with an appraisal, leaving millions in inventory acquisition costs on the table,” Chadwick said.
Cox surveyed nearly 2,000 vehicle owners this past spring who had their cars serviced in the previous 12 months.
Originally posted on Auto Dealer Today
More Industry

Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →
First-Half Dealership Deals Up
Buy-sell activity shows that acquirers are looking for value and scale as many retailers seek to leave an increasingly competitive and complex market, Kerrigan Advisors reports.
Read More →
Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →