A viral clip circulating on X this week perfectly captured what millions of car owners already know: we still buy our vehicles from dealerships, but almost nobody is taking them back there for routine maintenance anymore. The numbers back up the anecdote. According to recent data from Cox Automotive and J.D. Power, dealership service absorption rates have quietly collapsed from the mid-70% range a decade ago to barely 30-40% today for most brands. The service bay that once subsidized thin new-car margins is drying up.
The reasons are straightforward and unforgiving. Dealer labor rates now routinely exceed $150–$200 per hour in many markets, while independent shops and fast-lube chains charge $90–$120 for the same oil change or brake job. Parts markups at dealerships remain stubbornly high (often 100% or more), whereas online retailers and local mechanics source identical OEM or better-quality aftermarket components at half the price. Throw in mandatory “shop supplies” fees, diagnostic charges just to plug in a scanner, and multi-point inspection up-sells, and the average 30,000-mile service can easily top $800 at the dealer versus $350–$400 elsewhere.
Technology has accelerated the shift. Modern OBD-II diagnostics, YouTube tutorials, and affordable scan tools have democratized basic repair knowledge. Apps like YourMechanic and Openbay bring vetted mobile technicians to your driveway, and chains like Christian Brothers, Telle Tire, and Valvoline Instant Oil Change have raised the bar on speed, transparency, and customer experience—areas where many dealer service departments still feel stuck in 1995.
Even luxury brands aren’t immune. BMW and Mercedes owners, once tethered by complex electronics and “free maintenance” plans that conveniently expire right when real costs begin, are discovering that well-equipped independent specialists can handle everything from software updates to transmission services at 40–60% lower cost without voiding the remaining factory warranty (thanks to the Magnuson-Moss Warranty Act).
The result? Dealerships are increasingly reliant on new- and used-car sales in an era of shrinking margins and rising floor-plan interest rates. Service and parts revenue, long the profit sanctuary, is walking out the door with every customer who refuses to pay $220 for a cabin air filter.
The trend feels irreversible. Once consumers experience competent, fairly priced service without the pressure tactics and surprise invoices, they rarely go back.
So we want to hear from you: Do you still take your car to the dealer for normal maintenance and repairs, or have you joined the exodus to independent shops, mobile mechanics, or the DIY garage? Drop your experience in the comments.