Critical Shifts:
- Repurchase gap: Service isn’t just retention; it’s future sales. Customers who return to the dealer for service are 30 points more likely to repurchase from them again in the future, with 88% of consumers saying service experience impacts their likelihood to purchase again from that dealer.
- First-appointment gap: While 80% of new–vehicle buyers say they are likely to return to the dealership for service, only about a quarter reported that their first service appointment was scheduled at the time of purchase. Based on ownership–period service assumptions, the study estimates that losing a service customer can represent more than $12,000 in potential lifetime service spend.
- Trade-in gap: Only 14% of customers report they have ever been offered a trade-in value during their dealership service, while 33% are highly interested in these conversations; consumers start considering trade-in over repair when repair cost reaches around $3,195.
- Transparency gap: The study found that customers who reported receiving photos or videos during a service visit also reported higher average repair order spend—about $230 more on average—than those who did not. Nearly half of consumers (49%) say that seeing photos or videos makes them more likely to approve recommended services, highlighting how visual transparency can influence service decision–making.
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Cox Automotive Inc., on April 8 released its 2026 Fixed Operations and Ownership Study, a comprehensive report detailing how service has quietly become a powerful growth engine within the dealership, with 80% of new-car buyers likely to service at the selling dealership, as ownership now stretches longer and vehicles get more expensive.
The study reveals a shift in consumer ownership behavior: nearly two–thirds are owning their vehicles for five years or more, up from 54% in 2024; the average vehicle being disposed is now 10 years old; and nearly three–quarters of near–term shoppers are delaying purchase as average new-vehicle prices surpass $50,000, longing for the average new-vehicle transaction price of $35,000 10 years ago.
In the service lane, economics and competition have changed for consumers and dealers alike:
- Average dealer service and parts revenue reached ~$9.23M in 2025, up 33% in the last eight years, even as dealer share of service visits fell from 33% to 29%.
- As vehicles age, service frequency and costs accelerate dramatically for consumers; in the first five years of ownership, average cost per mile is about 20 cents, but jumps to about $1.10 per mile after 10 years of ownership.
- Service competition has intensified for dealers, with nearly 299,000 auto mechanic businesses operating in the U.S. today, up 12% since 2018, and mobile services (both independent and OEM) have emerged as an entirely new category.
- The average spend at a dealership is $261 versus $275 for general repair, and yet many consumers continue to perceive dealership service as more expensive.
- AI has entered the equation, with 16% of consumers using an AI website or tool during their most recent service journey, including research service providers, compare options, or better understand potential service needs.
“This study was designed to understand what separates thriving service departments from the rest, and it’s clear that as ownership stretches longer and service demands and costs compound, fixed operations are tremendous growth levers for dealers,” said Skyler Chadwick, director of product consulting, Cox Automotive. “The stakes are high for service experience as competition is expanding and consumers hold onto cost misperceptions, yet service is where dealerships can gain trust, demonstrate transparency and deliver value that unlocks inventory or repurchase opportunities.”
