Crisis in Car Dealerships: 12% Drop in Service Visits Since 2018

A study by Cox Automotive highlights a troubling reality for car dealerships across the United States, revealing a disturbing 12% decline in service visits since 2018. While overall service visits have increased, dealerships are losing significant market share to independent competitors. This erosion comes amidst a context where vehicles on the road are aging, and consumer loyalty towards the dealerships where they bought their vehicles is waning.

Why the Decline?

According to the Cox Automotive Service Industry Study, the average age of cars in the U.S. has risen to approximately 12.8 years in 2025, which represents a prolonged ownership duration for consumers. As drivers hold onto their vehicles for longer periods, the need for service and repair is increasing, resulting in substantial revenue for automotive service providers. In fact, dealerships that provided service and parts reported earnings of over $156 billion in 2024, emphasizing the critical role of fixed operations in their overall income. However, despite increasing income from services, dealerships are losing essential customers to independent repair shops and mobile service providers.

Market data reveals an alarming trend: dealerships are servicing 12% fewer visits compared to five years ago. Specifically, customers with cars aged five years or newer are less likely to return to the dealership for service. In 2025, only 54% of owners of vehicles two years old or newer chose to return to their purchasing dealerships, a sharp drop from 72% just two years prior. This shift reflects a rising tendency for consumers to seek service elsewhere, diminishing long-term loyalty.

The Impact of Loyalty

This decreasing loyalty has significant implications for dealerships; vehicle owners who consistently utilize dealership services are 74% more likely to purchase their next vehicle from the same location. Thus, the loss of service visits not only affects immediate revenue but also jeopardizes future sales.

Sources of Customer Frustration

The study identified customer frustration as a fundamental barrier to retaining service visits. Nearly half of vehicle owners expressed dissatisfaction with their dealership service experiences, primarily due to unexpected costs and inadequate communication. Notably, while the average repair cost at dealerships was $261 in 2025—less than the $275 at general repair shops—customers still prioritize transparency in pricing and effective communication. Over half of the respondents stated that they wanted the ability to compare service pricing online, highlighting the demand for digital conveniences.

Embracing Digital Solutions

To regain customer loyalty and attract return visits, dealerships must adapt by integrating digital tools that simplify communication and enhance customer experience. Innovations such as convenient online scheduling, after-hours drop-off options, and flexible service modifications can significantly improve customer satisfaction. Moreover, providing clear and upfront pricing is essential for building trust and reducing frustration.

The Untapped Potential of Service Lanes

Additionally, dealerships have an opportunity to tap into their service lanes for acquiring used vehicles. The study notes that over half of car owners facing significant repairs would consider trading in their vehicles, yet most are not actively approached with appliance valuations when they visit the service department. This absence of proactive appraisal means dealerships are missing potential inventory acquisition opportunities, leaving substantial financial resources untapped.

Skyler Chadwick, director of product consulting at Cox Automotive, emphasizes that there is a