For years, fixed operations have quietly carried dealerships through volatile market cycles. Now, new data from the Cox Automotive 2025 Service Industry Study makes one thing unmistakably clear: the service lane is a strategic goldmine.  

Yet many dealerships are failing to capitalize on it, not because demand isn’t there, but because leadership, retention, and execution inside service departments aren’t keeping pace with changing customer behavior. 

The result? Dealers are losing both service revenue and future vehicle sales to independent competitors at a time when opportunity has never been greater. 

Older Cars, More Service Demand and Less Loyalty 

The average age of vehicles on U.S. roads continues to climb. In 2025, it’s trending toward 12.8 years, up from 12.6 the year prior. Consumers are holding onto vehicles longer, driving increased demand for maintenance and repair. 

That demand is real and measurable. In 2024 alone, dealerships generated more than $156 billion in service and parts revenue across 270 million repair orders. Fixed operations now account for 13.2% of total dealership income, up from 12.4% in 2023, according to NADA – critical margin in an era of tightening front-end profits. 

Yet despite this growth, loyalty is eroding fast. 

In 2025, only 54% of owners with vehicles two years old or newer returned to the selling dealership for service, down sharply from 72% just two years earlier. This “buy here, service elsewhere” behavior doesn’t just impact fixed ops; it also breaks the pipeline for future vehicle sales. Customers who service at the dealership are 74% more likely to buy their next vehicle from the same store. 

The Real Breakdown is Experience, Not Price 

Contrary to perception, cost is not the dealer’s biggest disadvantage. The average dealership repair order in 2025 was $261, compared to $275 at independent repair shops. The issue is experience. 

Nearly 45% of vehicle owners report dissatisfaction with dealership service, driven largely by unexpected costs and poor communication. Customers want transparency, simplicity, and control, expectations shaped by every other digital-first experience in their lives. 

More than half of consumers say the ability to compare service pricing online is very important. They also expect easy scheduling, real-time updates, and modern conveniences like after-hours drop-off, pickup and delivery, and rideshare integration. 

Tools only work when service managers and fixed ops leaders know how to implement them consistently and hold teams accountable. 

The Overlooked Opportunity Sitting in the Service Lane 

Perhaps the most striking finding from the Cox study is how much untapped value sits right in front of dealerships every day. 

More than half of customers facing a major repair would consider trading in their vehicle. Yet only a small percentage are ever presented with an appraisal during a service visit. That’s not just a missed sale—it’s a missed inventory acquisition opportunity. 

Sourcing used vehicles through the service lane is among the lowest-cost, highest-confidence strategies available. Dealerships already know the vehicle, its condition, and its owner. When service and sales teams operate in silos, that goldmine goes untouched. 

Why Talent in Fixed Ops Matters More Than Ever 

None of these challenges are solved by advertising or automation alone. They are solved by strong, experienced service leadership – people who understand how to retain technicians, modernize the service experience, and align service with long-term dealership growth. 

Service managers, fixed ops directors, and high-performing service tech leaders are now among the most valuable assets in a dealership. They directly influence customer retention, profitability, inventory sourcing, and future vehicle sales. 

The goldmine is already there. The question is whether your dealership has the right people in place to mine it. 

Get in Touch 

Schedule a call with David Adragna today – 650 808-7066 

https://autopeople.com/contact-us/