Americans are getting their cars serviced more than they were two years ago, but they’re growing less likely to do it at the dealership.
In 2021, 35% of all car services happened at dealerships. Two years later, it’s 30%.
How Researchers Conducted the Study
Kelley Blue Book parent company, Cox Automotive, surveyed 2,493 vehicle owners, including 182 electric vehicle (EV) owners, who had at least one service performed in the past twelve months for a new study. The group accounted for over 5,500 service visits. Researchers also interviewed employees with decision-making authority over fixed operations at 525 franchised dealers.
Related: Car Dealers Are Worried
Lube Chains, Tire Service Centers Gaining Ground
The results show that dealerships are losing ground. Who’s gaining it? Not mom-and-pop repair shops, but service chains like tire service centers and quick lube brands.
Service is still recovering from COVID-19 pandemic lows. In 2023, the average owner had their vehicle in for service or maintenance 2.5 times a year, up from 2.3 in 2021 (the last time Cox Automotive studied the issue) but down from an average of 2.8 in 2018, before the pandemic.
A third of owners, when asked, say they prefer “general repair shops,” compared to 31% who prefer the dealership. That’s the first time dealerships have ever lost the preferred spot.
Americans Are Losing Trust in Dealerships
Dealerships are losing ground because they’re losing trust.
When vehicle owners were asked why they returned to the dealership where they purchased the vehicle for service, only 54% of respondents offered “trust” as a reason, down from 62% in 2021.
Study: Americans Growing Frustrated With Car Buying Process
They may also be hunting for an affordable deal. Researchers found that the average price per service visit has increased 45% in two years.
Dealership Service Isn’t Much More Expensive
Owners aren’t saving much by shifting their business to service centers. The average dealership service visit in 2023 costs $258; a visit to a non-dealer service provider costs an average of $249.
Forty-eight percent of drivers were frustrated with their most recent service visit. Common reasons cited include wait times, dealers pushing additional services, and prices proving higher than expected.
Electric Cars Are Not Living Up To Low-Maintenance Promises
Dealerships are gearing up for a rise in electric vehicle service as EV sales are expected to surpass 1 million units in a year for the first time in 2023, the Cox Automotive study shows. According to the survey, 71% of dealers have added technicians with high-voltage training and certifications to their EV service operations, and 67% have added infrastructure to support the servicing of EVs. Still, 54% say they need more trained staff, and 58% of dealers suggest they need updated infrastructure.
One commonly cited advantage of electric cars is that they have fewer moving parts and thus, in theory, require fewer service visits.
That is not proving true, the study shows.
EV owners reported visiting service centers more often than ICE owners and having more services performed with each visit. In the past year, the average EV owner visited a service center 2.6 times compared to the average gas-powered owner visit count of 2.3 times. The number of services performed per visit, 2.8 for EVs, was higher than the 2.4 services per visit for internal-combustion-powered cars.
Related: Apart from Tesla, EV Repairs Not Much More Costly
Importantly, EV owners spent more time waiting for maintenance (34 minutes longer) and repair work (51 minutes longer) than gas-powered car owners.
EV owners report fewer service visits that result in an out-of-pocket expense, but the repair costs for EVs are higher. For example, 65% of owners of EVs four years or older reported out-of-pocket service expenses, whereas 87% of ICE owners driving four years or older vehicles reported out-of-pocket expenses. However, EV owners typically paid more than $300 in expenses per service visit. Gas-powered owners’ expenses were closer to $250.
