For a long time, fixed ops was treated like the back half of the dealership. That mindset does not work anymore. If you look at what is happening in the market right now, fixed ops is one of the biggest opportunities dealers have to drive profitability, retain customers, and create future sales opportunities.
Here’s the thing: consumers are holding onto their vehicles longer, affordability is still a challenge, and dealers are feeling pressure on the sales side of the business. That puts service and parts in a different position than they were even a few years ago. According to Cox Automotive’s 2026 Fixed Operations and Ownership Study, average dealer service and parts revenue reached about $9.23 million in 2025, up 33% over the last eight years, even as dealer share of service visits fell from 33% to 29%. Put that into perspective: dealers are making more in fixed ops, but they are also fighting harder to keep that business.
Longer Ownership Cycles Are Reshaping Fixed Ops Opportunities
Consumers are keeping vehicles longer than ever. Nearly two-thirds now keep vehicles for five years or more, and the average vehicle being disposed of is now 10 years old. At the same time, many shoppers are delaying purchases because of affordability pressures and higher transaction prices. So, if you are a dealer, that should tell you something right away: customers are going to need more maintenance, more repairs, and more guidance over a longer ownership cycle.
That should create a real advantage for dealerships. As vehicles age, customers need everything from routine maintenance to major repair work. But that opportunity only matters if dealers can earn the business and keep the customer in their ecosystem.
That is where the challenge shows up. Dealers cannot assume those customers are automatically coming back. Nearly 299,000 mechanic businesses now operate across the United States, up 12% since 2018. Mobile service continues to grow, and independent repair shops are giving customers more options than ever. On top of that, many consumers still believe dealership service is more expensive, even when the actual difference in average spend is relatively small. The data says otherwise, but perception matters. If dealers want to keep customers, they have to compete on transparency, convenience, and trust.
The Biggest Profitability Gap May Be Retention
One of the biggest profitability gaps in the business right now is retention. Service is one of the strongest predictors of whether that customer buys their next vehicle from you. Customers who return for service are 30 points more likely to repurchase from the same dealer, and 88% say their service experience influences future purchase decisions. That is why fixed ops cannot be treated as separate from sales. If a customer stays connected to your service department, you are far more likely to keep that customer long term.
The service lane also creates opportunities that too many dealers still miss. A third of consumers say they are interested in trade-in conversations during service visits, but only 14% say they are actually getting an offer. At the same time, many customers start rethinking what to do with their vehicle when a repair bill gets above about $3,000. That is a key decision point. Do they invest in the vehicle they have, or do they move into something newer? Dealers should be ready for that conversation when it happens, because that is where fixed ops and sales can work together instead of operating in silos.
What High-Performing Dealerships Are Doing Differently
The dealerships doing this well are not relying on one silver bullet. They are getting the basics right, staying disciplined operationally, and making it easier for customers to do business with them.
That starts with execution. Many high-performing dealerships report service bay utilization rates above 90%, and 86% have a defined service-lane vehicle acquisition process. But beyond the metrics, the real difference is that they pay attention to the customer experience. Can a customer see pricing online? Can they get an appointment when they need one? Can they move through the scheduling process without friction? If the answer is no, that customer is going somewhere else.
Transparency matters just as much as efficiency. Customers want to know two things: how much is this going to cost, and when can you get it done? Dealers that can answer those questions clearly are in a much better position to keep the business. Cox Automotive data found that customers who received photos or videos during service visits reported about $230 higher average spend than those who did not, and nearly half say those visuals make them more likely to approve recommended work. When customers can see what is happening and understand the value, trust goes up.
This is also where dealerships have to stop thinking in separate departments. Service, parts, and sales all touch the same customer, but too often they act like different businesses. The dealers that are winning are the ones connecting service history, ownership data, and customer intent so they can spot opportunities earlier, whether that is a retention moment, a trade-in conversation, or a future purchase opportunity.
Technology is Reshaping the Ownership Experience
Technology is becoming one of the biggest enablers of both customer experience and operational performance in fixed ops.
Customers are already showing up with more information than they used to. Today, 16% of consumers use AI tools during the service journey to research providers, compare options, or better understand repair and maintenance needs. That number is only going to grow. Consumers are not getting less informed — they are getting smarter. That means dealers have to be ready with accurate pricing, better communication, and digital tools that actually make the process easier.
The dealers making progress here are using technology to remove friction. They are improving scheduling, increasing visibility into workflow, and giving customers clearer communication throughout the service experience. Those are not small changes. They directly influence whether a customer stays with the dealership or defects to a general repair shop.
EV ownership is also starting to shape fixed ops strategy in new ways. EV owners rely more on dealerships for service than internal combustion owners and report higher average out-of-pocket service spend. Looking ahead, more than one million used EVs are expected to enter the market by the end of 2028 as lease returns build. That creates another opportunity for dealers that are prepared to support those owners with the right tools, training, and service model.
At the same time, dealers still have to solve the capacity side of the equation. Technician shortages, training demands, and increasing vehicle complexity are all real pressures on the business. You can have the right strategy, but if you do not have the people, processes, and skills in place to support it, the customer experience breaks down. That is why the best operators are not just investing in customer-facing technology — they are investing in the teams and training needed to deliver on the promise.
Dealers that move now to improve execution, strengthen technician support, and make the ownership experience more transparent will be in a much better position to protect profitability and build long-term loyalty.
Looking Ahead
Fixed ops is not just a support function anymore. It is one of the clearest opportunities dealers have right now to drive profit, keep customers in their ecosystem, and create the next sale. The dealers that win will be the ones that make service easier, more transparent, and more connected to the rest of the business.
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Skyler Chadwick is Director of Product Consulting at Cox Automotive, where he has worked across platforms including Dealertrack, Xtime, vAuto, and Kelley Blue Book Instant Cash Offer, developing deep expertise in technology-driven dealer performance.