Williston, VT October 6, 2025 — New data shows loyalty among automotive dealership customers has dropped to historic lows, sparking what industry leaders are calling a “loyalty crisis.” In 2024, auto dealerships saw loyalty rates fall by 12 percent, with far fewer customers returning to the same dealership for repeat purchases or service. That leaves only one-fifth of dealership sales currently coming from repeat customers — well below the previously acclaimed one-third industry-standard benchmark considered healthy for long-term sustainability.
VehicleLyfe, an automated customer engagement platform built to help dealers measure and rebuild loyalty, warns that ignoring this crisis could have lasting consequences. By creating thousands of meaningful touchpoints each month, the company empowers dealers to re-establish trust with customers and reverse negative perceptions left over from the pandemic.
“Dealers have relied on loyalty for decades to bring repeat business to the dealership,” said Alex Snyder, CEO at VehicleLyfe. “But the pandemic disrupted trust and dismantled positive word-of-mouth reviews, and five years later, we still haven’t rebuilt it. Customers are telling us loud and clear that they don’t feel valued, and it’s up to dealers to rebuild the relationship.”
Pandemic-Era Practices Fueled Long-Term Distrust
At the height of pandemic shortages, 80 percent of buyers paid MSRP or more for new vehicles, with 34% saying they paid unexpected fees. The fallout is still impacting dealers today: 30% of those customers said they would discourage friends and family from visiting the dealership, while a third said they would not return for service.
The service department isn’t void to similar concerns. The average repair visit has climbed from $283 in 2019 to $521 in 2024 — an 85 percent increase — with high-mileage owners being hit the hardest at nearly $700 per visit. Customers are acutely aware of these rising costs, especially against the backdrop of record revenues reported by dealerships and manufacturers during the pandemic years.
“Customers watched the industry make money while they shouldered higher prices,” said Snyder. “Whether that was reality for individual dealerships matters very little. That’s a hard perception to undo, and dealers aren’t just losing transactions, they’re losing trust and seeing impacts from negative word-of-mouth marketing.”
Rebuilding Loyalty
According to NADA, acquiring a new customer now costs an average of $633, while re-engaging a previous customer costs less than $100. With vehicle prices climbing and margins tightening, dealerships have to face the hard reality that chasing new business is too expensive to be their sole strategy. But engaging existing customers requires a fundamental shift in strategy.
The VehicleLyfe platform tracks engagement and loyalty metrics in real time, sending actionable insights directly to a dealer’s inbox or CRM. On average, VehicleLyfe creates nearly 8,000 customer touchpoints per dealership each month, ensuring that relationships continue well beyond the point of sale or service.
“Customers aren’t looking for another sales pitch,” said Tom Harsha, COO at VehicleLyfe. “They’re looking for guidance. Ownership is complicated — between warranties, financing and service schedules for vehicles that have monthly payments that mirror mortgages in some cases. Dealers who position themselves as trusted partners — to help owners enjoy and maintain their vehicle especially when another purchase or service isn’t pending — will earn loyalty back.”
For more information, visit www.VehicleLyfe.com.
