Franchised auto dealerships are facing a widening retention crisis in their service lanes, according to the newly published Cox Automotive 2025 Service Industry Study, as cars on the road are getting older, yet loyalty to getting them serviced where they were purchased is not what it once was.
The average vehicle age on the road climbed to 12.8 years in 2025, but only 54% of owners with cars 2 years old or newer are returning to the original dealer for service — down from 72% in 2023, the study found.
Service and parts revenue at dealerships reached more than $156 billion in 2024, representing 13.2% of total dealer income, while the number of repair orders topped 270 million. Meanwhile, dealerships’ share of service visits has declined about 12 points since 2018, as independent repair shops, quick lube providers and mobile services scoop up the business.
Why the Decline in Dealer Service Loyalty?
A key driver is customer dissatisfaction. Nearly 45% of vehicle owners said they were unhappy with their dealership service experience, citing inconsistent communication, unexpected costs and lack of convenience. However, the study found dealership average repair cost in 2025 was $261 — slightly lower than the $275 average at general repair shops.
Cost perception remains a barrier. Earlier research by Cox found cost-related concerns were four of the top five reasons for not returning to dealership service.
Where the Opportunity Lies — But Partners Are Shifting
The U.S. vehicle fleet continuing to age offers a structural growth tailwind for maintenance and repair. Cox noted the average vehicle age of 12.8 years in 2025 was up from 12.6 in 2024. The U.S. automotive service market is projected to reach $199 billion in 2025 and grow toward $266 billion by 2030.
For collision repairers with OEM certifications or ADAS calibration capabilities, this means a ripe aftermarket for fixed-ops services tied to aging vehicles and out-of-warranty work. But the advantage is being amplified by independents.
