Dealers Are Making More in Service — But Losing Customers

Cox Automotive’s latest fixed ops research shows dealership service and parts revenue is at a record high. The average dealer brought in about $9.23 million in service and parts revenue in 2025, up 33% over the last eight years.

That sounds like a great headline.

But here’s the problem: while revenue is up, dealership share of service visits has fallen from 33% to 29%.

So dealers are making more money in fixed ops, but they are capturing a smaller piece of the service market.

That is the warning light.

Customers are drifting to independent repair shops, quick-lube chains, tire stores, and mobile service providers. And in many cases, it is not because the dealership cannot do the work. It is because the customer experience feels harder than it should.

They want easier scheduling.
They want better updates.
They want clear recommendations.
They want to know where their vehicle is in the process.
They want photos, videos, and explanations before approving work.
They want to feel informed instead of forgotten.

Because when a customer drops off their vehicle and hears nothing for hours, trust starts leaking.

And once that customer builds a habit somewhere else, getting them back is tough.

That is where tools like StatusPlus from Dixon Technologies become important. StatusPlus helps dealerships keep customers informed throughout the service visit, helps technicians and advisors stay aligned, and allows teams to send photos and videos that make service recommendations easier to understand.

That matters because retention is not just about doing good work.

It is about making the customer feel confident while the work is happening.

Cox also notes that service visits can unlock future sales and trade-in opportunities, which means every service customer is not just today’s repair order. They may be tomorrow’s vehicle sale.

So the takeaway is simple:

Dealers do not just need more fixed ops revenue.

They need better fixed ops retention.

And that starts with communication.

Because if customers feel informed, respected, and confident, they are more likely to approve the work, more likely to leave happy, and more likely to come back.

In today’s market, the service department is not just fixing vehicles.

It is protecting loyalty.

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