Tariffs are hitting the bottom line for dealerships nationwide. With nearly half of OEM parts sourced internationally, repair costs could rise by hundreds per job. Dealers who act now can protect their margins, retain customers, and drive service revenue before cost hikes take effect.
The most immediate concern is parts pricing. Many components essential for everyday repairs are sourced internationally. According to PartsTrader, 44% of OEM parts used in collision repairs come from outside the U.S., and nearly all aftermarket parts are produced in Taiwan. A lot is still uncertain, but repair estimates could increase by an average of $100 per job, with both labor and parts affected.
For consumers and dealers alike, that means the cost of waiting just got more expensive—a standard brake job today already costs around $150 per hour in labor on average and takes about two hours per axle. Depending on the make and model, parts range from $400 to $1,000—and tariffs could easily add hundreds more.
Timely Opportunity: Revisit Declined Services
While existing inventory might delay the initial impact, frequently used or low-stocked parts could see price increases within weeks. The question for dealers isn’t if prices will rise—it’s how they can act now to protect revenue and help customers make informed decisions.
Rather than wait for costs to rise, dealerships can reengage with customers who previously declined recommended services. Most service departments have untapped revenue sitting in their MPI (Multi-Point Inspection) tools. Jobs like brake work, alternator replacements, and new tires—services that customers postponed—are now time-sensitive.
Tools A Dealer Can Use
Reaching out while prices remain steady gives customers a reason to act and gives dealerships a chance to secure revenue before it’s squeezed by external cost pressures.
MPI tools like Xtime’s suite of tools help dealers resurface those past recommendations, provide updates in real-time and allocate appointments based on service type rather than just filling open slots, ensuring an even workload across technicians. When paired with photos or videos highlighting wear and tear, these reminders become more compelling for customers to act on. Visual context builds confidence in the recommendation, turning “maybe later” into approved repair.
Some dealerships are already seeing value in creating technician-recorded videos with annotations and voice explanations. These small additions help bridge the trust gap and accelerate decision-making, especially when customers are weighing repairs against cost concerns.
Preventing Bottlenecks: Optimize Shop Scheduling
Increased customer outreach can quickly lead to higher shop volume—a positive for revenue but a challenge for scheduling and workflows. To avoid bottlenecks, service departments need to manage workload efficiently so technicians can stay productive, and customers don’t experience unnecessary delays.
Tools can help dealers allocate appointments based on service type rather than just filling open slots, ensuring an even workload across technicians. Paired with real-time performance dashboards, service managers can identify scheduling imbalances early and adjust workflows to maintain efficiency.
Looking beyond scheduling, teams may also benefit from more flexibility in staffing, appointment spacing, or technician skill matching. The better the dealership is managed behind the scenes, the better the experience is for the customer at the front counter.
Strengthening the Service Experience
Efficiency is key, but customer experience still needs to be at the forefront. As prices climb, customers are going to pay more attention to every line item. That makes the experience you deliver more important than ever.
Providing real-time status updates ensures customers stay informed without needing to call the shop. Tablet-based reception and self-check-in options streamline the intake process, reducing wait times and making every interaction more seamless
In a high-cost environment, visibility and transparency builds trust and keeps customers coming back—even when pricing pressures rise. When they understand the repair, trust the process, and feel like they’re being treated fairly, they’re more likely to stay loyal. Even small improvements in communication can have a lasting impact on retention.
The Bottom Line
The impact of tariffs on parts pricing is real. What you do today—before increases take hold—can determine how well your dealership navigates the shift. Re-engage customers by revisiting the services you’ve recommended in the past, optimize scheduling and shop efficiency, and deliver transparent, seamless customer experiences to strengthen loyalty.
These aren’t dramatic shifts. They’re small adjustments that can have a major impact on revenue and retention if executed consistently.
In a year filled with supply chain uncertainties and evolving consumer expectations, the dealerships that remain proactive, efficient, and customer-focused will be in the strongest ones positioned to succeed through these current challenges and beyond them.
