We noticed a trend in 2024 that has not yet entirely shifted in 2025. Customers of car dealerships were not returning to buy more cars or service their old vehicles in the same way they had for the previous five years.
Dealers saw a 12% gap in their loyalty rates.
Most franchised dealerships received more than 30% of their annual sales from customers who had previously spent a dollar with them. By the end of 2024, that number had dropped into the low 20% territory.
It was expected to see this change when new car inventory was in short supply, but that wasn’t the case in 2024. And it isn’t the case in 2025.
We have noticed a significant rise in service costs since 2019. The average service used to cost a customer around $285; today, those same visits average $520.
This is primarily due to the increasing number of aging cars on the road. When a vehicle has over 100,000 miles, more maintenance is required. This is the time when spark plugs, timing belts, alternators, and other components need replacement. Those can be higher-priced services. More customers opt to use independent repair shops to save money on these pricier repairs.
Sometimes, faith can be shattered when a car becomes very expensive to maintain. This leads to brand defection. This is another reason why customers may not return to the dealership with which they did business before.
VehicleLyfe is designed to help dealers retain more customers by providing a complete picture of vehicle ownership. It isn’t just about how expensive the last repair was, but also about how they can make the future more affordable or how they can upgrade to something newer. VehicleLyfe’s mission is to be a consistent reminder of all the options available to customers through the dealership.
