Independent shops gain ground as dealerships face mounting pressure

• Independent shops are gaining share, but dealerships still lead at 42% overall service volume.
• Dealerships win on expertise, OEM parts access, EV repairs, and stronger customer loyalty retention rates.
• Post-warranty attrition is rising, making digital tools and engagement critical for retaining service customers.

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More customers are ditching dealerships for service and maintenance on their vehicles.  Independent shops increased market share by six percentage points year over year, according to the latest CDK Service Shopper 5.0 study. The shift reflects changing consumer habits around cost and convenience.

38% of respondents said independent repair shops are their primary service provider. That’s up from 32% in 2024. Dealerships still make up the majority of service providers, but they reported a drop in share from 47% to 42%. Analysts say this data signals intensifying competition from independent service providers rather than a complete customer shift away from dealerships.

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The survey also finds that dealerships maintain a measurable lead in customer loyalty. 59% of customers use dealerships exclusively, while 48% use independent shops. Only 7% of dealership customers report no preference, compared to 10% for independent customers.

What’s driving customer behavior shifts

Customers tend to favor independent shops for routine maintenance, according to the survey. It cites price and proximity as key factors driving this behavior. Meanwhile, customers still prefer taking their vehicles to dealerships for more complex, technical, or manufacturer-specific work. Many customers also report shifting to independent shops for post-warranty work.

Where dealership service still shines

Dealerships still hold several competitive advantages according to the survey. Customers ranked staff knowledge as the top reason they chose dealerships for service.

Other factors favoring dealerships include:

Digital capability is emerging as another reason customers choose dealerships. The survey found that about 26% of dealership customers book service online, compared to just 10% for independent shops. Although phone scheduling still dominates, customer expectations are shifting toward greater convenience and flexibility. Expanding tools such as online scheduling, service status updates, and digital payments can enhance the customer experience and boost retention among increasingly digital-first consumers.