Matt Warpinski and Tiffani Stefanescu, Directors of Performance Management at Xtime
Today there are more vehicles on the road than ever before, but the volume of dealer visits from 2018 to 2025 shows a significant drop. Service customers are going to independent repair shops and quick lubes instead of the dealership. And now we’re seeing new mobile services going out to people’s houses and doing work there.
Once a vehicle is five years old or past its warranty period, customers start visiting the dealership less often – right when the RO amounts are increasing. So, we need to look at why this is happening and what dealerships can do about it to bring customers back in.
As it turns out, customers hold some common misconceptions about dealership service departments. According to the 2025 Cox Automotive Service Industry Study:
- Customers perceive dealership service as inconvenient and time-consuming.
- Many believe it’s more expensive, regardless of actual pricing.
- Trust is eroded by poor communication and lack of transparency.
The November 2025 session of our Fixed Ops Focus series discussed how dealerships can address these misconceptions and adapt to customer expectations around convenience, value, and trust to retain—and regain—service business.
Misconception #1: “Dealership Service Takes Too Long and Isn’t Convenient”
One thing that drives many customers toward quick-lube shops and aftermarket alternatives is the belief that dealership service is slow and inconvenient. Consumer expectations for speed and flexibility have been shaped by experiences like two-hour Amazon deliveries—which has transformed what customers demand from service providers.
As a result, dealerships are losing business not because they lack expertise, but because customers perceive independent shops to be more convenient. Yet, dealerships have unique advantages: they know the vehicles better than anyone else and can offer a superior, tailored experience. The challenge is to make dealership service as accessible and efficient as the alternatives.
To overcome the misconception that their service takes too long, dealerships can implement several best practices:
- Break Out Express and Main Shop Appointments: Separate express services (like oil changes) from main shop repairs to streamline workflows. This reduces wait times and ensures customers aren’t stuck behind more complex jobs. When routine service experiences are quicker and more convenient, it gives customers a more positive view of the dealership service lane as a whole.
- Offer Pickup, Delivery, and Mobile Service: Many OEMs now incentivize dealerships to provide pickup and delivery or mobile service options. This meets customers where they are, eliminating the need for them to visit the dealership at all.
- Integrate Ride-Share Solutions: Instead of relying solely on loaner vehicles, dealerships can partner with ride-share services like Lyft or Uber. This allows customers to leave the dealership and go about their day while their vehicle is serviced, enhancing convenience and satisfaction.
- Leverage Digital Scheduling Tools: Customers want to book appointments online, anytime. Digital scheduling platforms enable 24/7 booking and smart capacity management, giving customers control and transparency over their service experience.
- Use Automated Service Trackers and Real-Time Updates: Automated tools can send real-time updates via text or email, keeping customers informed about their vehicle’s status. With this steady flow of information, customers know what to expect when planning their time around the service.
- Offer Online Payment: When the customer gets their final update, include a payment link so they don’t need to wait to get to the service drive and check out with a cashier. Paying ahead of time lets them just grab their keys and head out.
Misconception #2: “Dealership Service Is Always More Expensive”
A common belief among customers is that dealership service is always pricier than independent shops. This perception often drives customers to the aftermarket shop, even when dealerships may actually offer competitive rates. However, data and experience show that what matters most to customers isn’t just the price—it’s the value and transparency they receive.
When customers understand what they’re paying for and see clear benefits—such as expert technicians, genuine parts, and a tailored service experience—they’re more likely to view dealership pricing as fair. Transparent communication, digital estimates, and upfront explanations help shift the focus from cost alone to overall value.
Here are some steps dealerships can take to address the misconception that they’re “too expensive” and demonstrate their value:
- Advertise Competitive Pricing Online: Make service pricing visible and accessible on your website. If customers can easily compare dealership rates with local independents, it prevents the aftermarket from controlling the narrative and shows that dealerships can be just as competitive.
- Use “Dare to Compare” Campaigns: Highlight the value of dealership service through marketing campaigns that directly compare offerings with those of independent shops. Show not just the price, but also the added benefits—such as warranty coverage, certified technicians, and OEM parts.
- Offer Transparent, Digital Estimates and Payment Options: Provide customers with digital estimates before work begins and offer online payment options. This transparency builds trust and makes the process more convenient.
- Present Maintenance and Repair Options Upon Arrival: Use tablets to present recommended services and maintenance options during check-in. Digital authorization empowers customers to make informed decisions and gives them control over their service experience.
- Discuss Payment Flexibility: Offer financing solutions to help customers manage larger repair bills. Flexible payment options can make dealership service more accessible and reduce the impact of unexpected expenses.
Misconception #3: “Dealerships Aren’t Trustworthy”
Many customers approach dealership service with skepticism, often recalling experiences where recommendations felt confusing or unnecessary. Real-world anecdotes abound: a young driver surprised by a long list of suggested repairs, or a customer unsure whether a flush or filter replacement is truly needed. These moments of doubt are often rooted in poor communication and a lack of transparency, which erode trust and drive customers elsewhere.
When customers don’t understand what’s being recommended—or feel pressured without clear explanations—they’re less likely to approve additional services and more likely to seek alternatives. The trust gap is not just about technical expertise; it’s about making customers feel informed and confident in every interaction.
Dealerships can close the trust gap by embracing transparency and proactive communication:
- Send Each Customer Multi-Point Inspection Photos and Video: Requiring high-resolution media with every repair order is the ultimate in transparency. When customers receive photos and videos showing exactly what the technician sees, recommendations become clear and personalized. This approach helps build a genuine relationship and reassures customers that their needs are being addressed honestly.
- Use Texting and Digital Communication as the Default: Most customers prefer text updates over phone calls. Making digital communication the standard ensures customers stay informed in real time, reducing anxiety and uncertainty.
- Ensure Contact Information Is Updated at Check-In: Verifying customer contact details at the start of each visit enables seamless communication throughout the service process.
- Automate Status Updates and Provide Online Payment Options: Automated service trackers can send real-time updates about vehicle status, while online payment options make checkout quick and frictionless. These tools eliminate surprises and keep customers in the loop from drop-off to pick-up.
The ROI of Convenience, Value and Trust
Transparency isn’t just good for customer satisfaction—it’s also good for business. Data from dealership groups show that ROs accompanied by photos and videos average significantly higher values than those without media. Multi-media tools drive trust in your service team and can help you earn up to 23% more per repair order.*
When customers can see and understand what you’re recommending, they’re more likely to approve necessary repairs—faster—and feel confident in their choices. Dealers sending pictures and videos with additional service recommendations see approvals in as fast as 5 minutes.* So, this leads to higher approval rates, increased revenue, and stronger long-term relationships.
Next Steps for Dealerships
By taking these steps, dealerships can transform perceptions, increase customer satisfaction, and drive higher retention and revenue. The key is to meet customers where they are—digitally, transparently, and with genuine care.
Want to learn more about Xtime solutions that can help you put these strategies into practice?

*Source: Data from all Xtime dealers between Jan 2025 and July 2025.