The Transforming Landscape of Auto Dealerships: Revving Up Fixed Operations Revenue

A recent study by Cox Automotive has shed light on the evolving dynamics of auto dealerships in the U.S. market. While dealerships have recorded impressive revenue from fixed operations, they are simultaneously facing a significant decline in market share. This report highlights a crucial 50-point gap between customers' intentions to return to their selling dealership for service and the actual scheduling of service appointments. This discrepancy suggests that many customers are opting for general repair services over returning to the dealership, which presents a growing concern for the industry.

The gap signifies that dealerships may be leaving substantial revenue—an estimated $12,000 per lost customer—untapped. As the number of independent auto repair businesses rises to nearly 299,000, the competitiveness within the service landscape intensifies. Customers’ perceptions regarding pricing are also evolving; despite the average dealer service costing $261, the market average for general repairs stands at $275. This pricing perception is further complicated by the emergence of mobile service options, leading to new challenges for traditional dealerships.

The study indicates that car ownership patterns are changing as well, with nearly two-thirds of vehicle owners keeping their vehicles for five years or more—up from 54% since 2024. Additionally, vehicle disposal averages have crept up to 10 years. As a result, consumers are delaying the purchase of new vehicles given the skyrocketing prices, which currently average over $50,000 compared to $35,000 just a decade prior. This shift in ownership extends the opportunity for dealerships to enhance their fixed operations revenue, especially as older vehicles require more frequent and costly upkeep.

Despite growing revenues in service and parts—approximately $9.23 million per dealer in 2025, up 33% over the past eight years—the market share for dealerships in service visits has decreased from 33% to 29%. The frequency of service needed escalates dramatically, with costs per mile for maintenance climbing significantly as vehicles age. While the need for service presents opportunities for dealerships, the preference for general repair shops indicates a need for strategic reevaluation.

Another major insight derived from the report is the role of digital-first experiences in enhancing dealership service. High-performing dealerships are utilizing advanced online tools for scheduling, electronic approvals, and providing transparency through photos and videos of necessary repairs. Those that have integrated such digital services have reported increases in consumer trust—53%—and elevated customer engagement—45%—when they utilize visual documentation.

The report also emphasizes the importance of establishing trust with customers. The study revealed that customers who have transparent experiences at dealerships are significantly more likely to return. Notably, 88% of survey respondents indicated that their service experience at a dealership will impact their future purchasing decisions. In stark contrast, only about 25% of customers scheduled their first service appointment at the time of vehicle purchase, indicating another systemic issue that requires addressing.

In addressing the needs of electric vehicle (EV) owners, the study found these customers significantly rely on dealerships for service, with 67% preferring dealer visits. EV owners tend to spend an average of $417 per visit, and they increasingly explore trade-in options during service appointments. This presents a crucial opportunity for dealerships to engage with EV owners and build long-term relationships that can translate into future sales.

As Cox Automotive’s report illustrates, the key takeaway for dealerships is the importance of nurturing customer relationships through quality service and streamlined operations. High-performing dealerships show that operational efficiency, digital innovations, and a commitment to customer satisfaction are vital to thriving in today’s complex automotive market. By addressing the shifting landscape of customer expectations and finding ways to recapture the lost market share, dealerships can transform fixed operations into a significant growth engine for their businesses.

Cox Automotive continues to underscore the importance of aligning service department strategies with customer-centric approaches to enhance retention and profitability.

For those interested in a comprehensive breakdown of the study and actionable insights on improving fixed operations, the full report titled Cox Automotive 2026 Fixed Operations and Ownership Study is available.