Today’s drivers are holding onto their vehicles for longer than ever. With the average U.S. car now a record 12.6 years old and traffic volumes back to pre-pandemic levels, demand for service is poised to rise.
At the same time, new pressures are reshaping the aftersales landscape. Consumers are prioritizing convenience and proximity. Battery electric vehicles (BEVs) are becoming more common. Original equipment manufacturers (OEMs) and dealerships are doubling down on retention strategies.
Together, these factors are redefining how automakers and dealers engage in the aftersales market — and what it takes to stay competitive. Here are four ways that evolution is playing out across the industry.
Alternative Powertrains are Creating Complexity and Opportunity
As electric vehicle (EV) adoption continues, the rules for service are shifting. BEVs come with fewer serviceable parts than traditional internal combustion engine (ICE) vehicles. However, they introduce a new set of challenges, including complex diagnostics, high-voltage systems and faster tire wear.
Then there are hybrid vehicles, which are unique in that they call for both traditional and electrical servicing, increasing maintenance demands and, as such, service revenue opportunities. Our research, conducted alongside The Harris Poll, found that hybrid owners* not only service their vehicles more often than ICE or BEV owners but are also less likely to defect to independent repairers.
The service potential for hybrids is especially relevant since data suggests dealers and auto buyers aren’t fully aligned on BEV demand. Our research found that 78 percent of dealers are leaning more heavily into EV sales, and 39 percent plan to rapidly expand these efforts in the next five years. However, auto buyers remain hesitant. Nearly four in 10 said OEMs should focus on hybrids until concerns around BEVs, such as limited charging infrastructure, are resolved.
In the near term, hybrids may offer the best of both worlds: consistent service revenue and a product consumers trust. Automakers will need to adapt their aftersales models accordingly, investing in infrastructure, staffing and network strategies that effectively sell and service multiple powertrains and position their stores to capitalize on a diverse range of aftersales opportunities. Crucially, these strategies must be grounded in daily industry sales data. Without this data-driven approach, OEMs risk making major network investments based on outdated insights and unreliable forecasts.
AI is Fueling the Aftersales Funnel
Artificial intelligence (AI) is gaining real traction in aftersales. Eighty-seven percent of U.S. dealers are using, or intend to start using, AI for post-sales services and maintenance management.
In addition to widely covered applications like predictive maintenance, AI is emerging as a key tool for bridging the gap between service and sales. By using AI to analyze customer and vehicle data, dealers can anticipate future buying behavior and use those insights to guide inventory decisions and personalize offers. This level of intelligence can turn a regular service visit into a well-timed sales conversation using data dealers already have at their fingertips.
Automakers are Taking Service Beyond the Dealership
Consumers want service on their terms: convenient, affordable and close to home. For some, that translates to bypassing the dealership altogether. Nearly 40 percent of auto buyers surveyed by Urban Science and The Harris Poll said they prefer general repair shops because they find them more convenient.
Technology is also changing how and where service happens. The ability to perform over-the-air (OTA) updates and remote diagnostics means many issues can be addressed without a trip to a dealership. In 2025, 86 percent of dealers said OTA capabilities were leading to fewer in-person visits, and almost 90 percent indicated AI was limiting the need for manual diagnostics and software updates. As these technologies reduce traditional service touchpoints, OEMs and dealers must rethink how they maintain customer relationships and deliver value beyond the service bay.
In a market where demand for aftersales convenience is double that of vehicle sales, proximity has become a major differentiator. Data from Urban Science shows that most vehicles are serviced within 10 miles of a dealership. In metro areas, half are serviced within four miles. However, expanding service access isn’t always as simple as building additional locations. In the U.S., strict franchise laws limit how and where automakers can establish service centers. To overcome these constraints, OEMs are adopting alternative service models. From mobile maintenance to pick up and delivery and service kiosks, these provide a way to get closer to customers without the need for new brick-and-mortar infrastructure.
In tandem with this, OEMs and dealers should emphasize proximity in their targeting to make sure they’re reaching the right customers in the right locations — and capturing service demand that might otherwise go to independent shops.
Bundled Aftersales Packages are Improving Retention
For auto buyers, bundled aftersales packages take the uncertainty out of maintenance by offering a predictable, flexible way to manage vehicle care. By covering essentials like routine service, software updates and extended warranties, these plans make ownership easier — and often lead to stronger brand loyalty.
According to Urban Science’s data, 43 percent of car owners continue servicing their vehicle at the dealership where they purchased it because the manufacturer offers a free or discounted service package. Even more encouragingly, almost half of auto buyers say they strongly prefer their selling dealer to handle service.
To maximize their chances of turning initial sales into lasting relationships, OEMs and dealers should pair bundled aftersales offerings with analytics that track service activity across factors such as geography, fuel type and vehicle age. That data will help them pinpoint opportunities for improvement and focus their retention efforts in the areas where they’ll have the greatest impact.
Strengthening the Service-to-Sales Pipeline
For many consumers, the path to the next sale starts in the service bay. While the showroom may be where a relationship begins, it’s often the ongoing service experience that determines whether a customer will keep coming back. In fact, Urban Science’s data shows that service-loyal customers are more than twice as likely to return to the dealership where they regularly get their vehicles serviced, compared to purchasing at other same-brand dealerships.
As consumer expectations shift and vehicle technologies evolve, aftersales remains one of the clearest opportunities for OEMs and dealers to provide long-term value, and to generate high-margin interactions that power healthy dealerships. The more they shape their service offerings around what drivers actually want, the better their chances of earning lasting loyalty and the lucrative service and maintenance opportunities it creates.
Bundled service packages, alternative delivery models and AI-enabled insights all offer ways to streamline and modernize the service experience. For OEMs and dealers, that means new ways to attract, retain and re-engage customers — all while laying the groundwork for future sales.
*This survey was conducted online by The Harris Poll on behalf of Urban Science among 3,026 U.S. adults aged 18+ who currently own or lease or plan to purchase or lease a new or used vehicle in the next 12 months (between January 10 to February 4, 2025) and among 254 U.S. OEM automotive dealers, whose titles were Sales Manager, General Manager or Principal/VP/Owner (between January 9 to January 30, 2025.)
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