ATLANTA—April 9, 2026—Cox Automotive Inc., today released their 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.”
Key findings of the study reveal:
- 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.
EVs are also a prominent factor in the service department. EV owners are most reliant on dealers for service needs at 67% share of visits, compared to internal combustion engines (ICE) owners with only 28% share of dealer service visits; hybrid owners also prefer dealers with 50% share of service visits. EV owners reported the highest out-of-pocket spend per visit, at an average of $417 across maintenance, repairs and enhancements.
EV owners also leverage service visits to explore trade-in value (58%), with 21% having traded-in and purchased another vehicle after meeting with a salesperson during a service visit. Dealerships should anticipate more of this consumer behavior over the next two years as more than one million used EVs are predicted to be in circulation by the end of 2028 as they come off lease.
The report also uncovered a group of high-performing dealerships, where 58% of dealers surveyed said their fixed operations have become both more efficient and more profitable in the past year. Various practices and investments of these high-performing dealerships include:
- Operational discipline: High performers utilize their service bays at 90% or more and 86% have a defined service-lane vehicle acquisition process.
- Digital-first experience: High performers offer online scheduling, electronic estimate review and approval, and photos or videos of recommended repairs. Surveyed dealers who use photos and videos cited a 53% increase in consumer trust and 45% higher customer engagement.
- Cross-department integration: 58% of high performers report stronger parts and service department technology and data integration with the overall dealership.
“High‑performing dealerships recognize that service plays a central role across the business—not just as a department, but as a key point of connection with the customer,” Chadwick said. “The study shows that dealers with stronger retention and higher average revenue per repair order are more likely to take a service‑first approach, supported by digital tools and personalization, which can help strengthen trust, retention, and long‑term customer relationships.”
“We had to follow the data and monitor our metrics to recognize that our service department was flying blind and needed to step up its game,” stated Tully Williams, Director of Fixed Operations, The Niello Company. “We fixed what frustrated our customers and improved our pricing transparency, committed to delivering on estimated service times, and enhanced customer communication with texts, pictures and videos. The goal for us is long-term retention, by turning simple service interactions into moments of trust among our technicians and customers.”
The study surveyed 500 dealership fixed-ops decision makers and 2,500 consumers who have had a service visit within the last 12 months. For a comprehensive breakdown of the findings and what high-performing dealerships do differently, download the study, Cox Automotive 2026 Fixed Operations and Ownership Study, here.
About Cox Automotive
Cox Automotive is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, auto manufacturers, dealers, lenders and fleets. The company has 29,000+ employees on five continents and a portfolio of industry-leading brands that include Autotrader®, Kelley Blue Book®, Manheim®, vAuto®, Dealertrack®, NextGear Capital™, CentralDispatch® and Cox Fleet®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $23 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook or Cox-Automotive-Inc on LinkedIn.
Media Contacts:
Lisa Aloisio
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lisa.aloisio@coxautoinc.com
