Cox Automotive, a provider of digital retailing, wholesale and data solutions for the automotive industry, has released its 2026 fixed operations and ownership study, showing dealership service departments generating record revenue even as they continue to lose market share.
The study is based on a survey of about 2,500 U.S. consumers and 500 dealership fixed operations decision-makers and combined with dealership financial data and market analysis. The findings reflect U.S. consumer behaviour and service trends.
Dealership service and parts revenue averaged about US$9.23 million ($12.5 million) in 2025, up 33% over eight years. Over the same period, dealer share of service visits declined from 33% to 29%.
The study shows that customer consideration is closely split at the outset of ownership, with dealerships and independent repair facilities drawing similar levels of initial intent. That balance shifts based on early service experience, influencing where customers return for future work.
Convenience factors are cited as key drivers in customer decisions. Scheduling, communication and turnaround times rank ahead of price in determining where customers choose to service their vehicles.
Vehicle age continues to shape service demand. As vehicles move beyond five years, operating costs increase, contributing to higher repair frequency and spending. The study indicates consumers begin weighing repair against replacement at about US$3,195 ($4,330) in repair costs.
The report also identifies gaps in dealership engagement during service visits. About 14% of customers reported receiving a trade-in valuation while in for service, while a larger share indicated interest in that information.
Differences in operational performance are highlighted between higher- and lower-performing service departments. Higher-performing operations report greater use of digital inspection tools, including photo and video documentation, and higher revenue per repair order.
Customers who receive photo or video documentation of recommended work spend about US$640 ($867) per repair order on average, compared with about US$410 ($555) for those who do not.
“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.
“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,” Chadwick added.
Customers who return to a dealership for service are about 30% more likely to repurchase from that dealership, according to the study, and 88% report that the service experience influences their next vehicle purchase decision.
