The Great Dealership Service Exodus: Why Americans Are Ditching Dealer Repairs

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For decades, car dealerships were not only the place to buy a vehicle but also the default destination for maintenance and repairs. Today, that model is unraveling. While dealerships remain the primary channel for new car sales, their service departments are facing a crisis of relevance. A viral post on X recently captured the sentiment bluntly: “People still buy their cars from dealerships, but almost no one is servicing them at dealerships now.” Investigative reporting and industry data confirm that this trend is real, widespread, and accelerating.

One of the most cited reasons for the decline in dealership service visits is cost. Independent garages typically charge 15–30 percent lower labor rates than dealerships and have more flexibility in sourcing parts. For many car owners, a routine oil change or brake job at a dealership can cost significantly more than at a local shop. In an era of inflation and tighter household budgets, the premium pricing at dealerships has become harder to justify.

Trust is another issue. Surveys show that many customers believe dealerships prioritize upselling over genuine service needs. A simple maintenance visit can balloon into a long list of recommended repairs, leaving drivers skeptical about whether they are being overcharged.

Beyond cost, poor communication is gutting dealership service retention. At the National Association of Minority Auto Dealers conference in 2025, executives revealed troubling statistics: more than 80 percent of advisor calls go unanswered, and the average service advisor takes 23 hours to return a call. Nearly 40 percent of inbound calls are from customers chasing updates that should have been proactively provided. This lack of responsiveness has driven many car owners to seek alternatives where transparency and speed are prioritized.

The shift is measurable. Independent repair shops now hold about 60 percent of the U.S. auto service market share, a figure that has steadily grown over the past decade. Research shows dealership service centers have lost 5.3 percent of consumer preference in the last ten years, with aftermarket outlets gaining traction even among owners of newer vehicles. Independent shops often offer more convenient locations, faster turnaround times, and personalized customer service. Dealerships struggle to match these critical advantages.

Ironically, service revenues are more critical than ever for dealerships. As new-vehicle prices soften and used inventory becomes harder to source, service departments are supposed to be the profit engine. Yet, the very customers they rely on are walking away. Some brands, like Ford, are experimenting with remote and delivery services to win back loyalty. Others are investing in AI-driven scheduling and communication platforms. But these innovations are still in their infancy, and the gap between consumer expectations and dealership realities remains wide.

Electric vehicles (EVs) add another layer of complexity. With fewer moving parts and less frequent maintenance needs, EVs reduce the traditional service opportunities dealerships once depended on. Independent shops are quickly adapting to EV servicing, while dealerships risk falling behind if they fail to modernize their offerings.

So, the viral claim that “almost no one is servicing their cars at dealerships” is not hyperbole. It reflects a documented industry shift. High costs, poor communication, and eroding trust are reshaping the auto service landscape by driving customers toward independent repair shops. Dealerships can either adapt with transparency, convenience, and technology, or watch their service bays grow emptier by the year. People still buy their cars from dealerships, but almost no one is servicing them at dealerships now. — Financial Dystopia (@financedystop) December 4, 2025