Service loyalty is breaking and rising parts prices are speeding up the exit. Dealers are feeling pressure on every front, and customers are defecting to independents faster than most stores realize.
OEM part markups are a big driver. As one recent analysis shows, dealership repairs now average $261 vs. $275 at general repair shops, virtually no difference, yet more customers are choosing independents anyway.
Why? Perception. Transparency. And timing.
The Dealership Loyalty Decline Is Accelerating
In 2025, only 54% of owners of two-year-old vehicles returned to the dealership where they purchased their car for service, down from 72% in 2023.
That 18-point drop isn’t just a fixed ops hit. It weakens used-car pipelines, trade-ins, repeat buyers, and lifetime value.
Once a customer leaves your drive, you’re usually not getting them back.
Fixed Ops Remains a Top Dealer Priority, But Now It’s a Battleground
Car Dealership Guy’s latest Dealer Outlook Survey, fixed ops remains one of the top two growth priorities for dealers, just behind used vehicles.
With affordability stretched, dealers are doubling down on the parts of the business most responsive to consumer demand. But when fixed ops is everyone’s priority, the edge goes to the dealers who innovate fastest.
Generic Savings Aren’t Cutting it Anymore
The big unlock? Intelligent, personalized incentives.
Modern fixed ops teams are ditching mass discounts in favor of VIN-specific offers informed by:
- Service history
- Declined work behavior
- Spend propensity
- Vehicle age & warranty status
These incentives convert better, raise RO values, and keep customers from drifting to independents, especially when parts prices make every extra dollar feel painful.
A well-timed, personalized incentive can save a customer before they start shopping around.
Automation & Personalization Give Dealers a Competitive Edge
Dealers using automated, event-based engagement—end-of-warranty triggers, enhanced-decline follow-up, predictive trade-in alerts—are seeing:
- 10x–15x service revenue ROI
- Lower churn
- More consistent bay utilization
And none of it feels “salesy” because the messaging matches the moment. This isn’t batch-and-blast marketing. It’s timely, relevant help that customers actually value.
With parts prices rising and fixed ops becoming more competitive by the quarter, the advantage now lies in how intelligently you engage customers, and how effectively you use personalized incentives to keep them from drifting toward independent shops.
The dealers who win are the ones who treat fixed ops like the growth engine it is and use smart, personalized incentives to lock in loyalty before independents do.
Want to see what intelligent incentives and predictive engagement could unlock for your store? Fill out the form to book a demo .