Study: Since 2018, Dealerships Have Lost 12% of Service Visits to Independents

A recent study from Cox Automotive showed that U.S. dealerships are losing customers to independent competitors at a steady rate, as detailed in a press release.

The Cox Automotive Service Industry Study, conducted between April and May of 2025, found that dealerships are losing customers to independent businesses, despite a rise in overall number of service visits.

As the average age of cars increases in the U.S., demand is also creating more business for automotive services and repair companies. However, Cox Automotive found that dealerships now handle 12% fewer service visits than they did in 2018. 

Dealerships are losing most business from cars that are five years old or newer. In 2025, only 54% of people with cars two years old or newer went back to the dealership where they purchased for service, which is down from 72% in 2023. Instead, these customers are going to regular repair shops, quick oil change places, and mobile service companies.

The study highlighted clear pain points customers have with service departments: unexpected costs and lack of communication. Nearly half of vehicle owners (45%) were dissatisfied with their dealership service experience, primarily due to unexpected costs and poor communication. Yet, dealership repair costs in 2025 averaged $261, lower than the $275 average at general repair shops. 

The findings underscore the need for transparent pricing, easy scheduling, and flexible service options. Repair providers will have an edge if they offer digital tools that simplify communication, as well as modern conveniences like after-hours scheduling, pickup and delivery, and rideshare integration.