U.S. car dealerships are increasingly relying on their service departments to offset declining vehicle sales profitability. Total service and parts sales surged 48% over the past five years, reaching $164.6 billion in 2024. Average pretax profit per publicly traded dealership dropped from $6.8 million in 2022 to $3.9 million in 2025, according to Kerrigan Advisers. Meanwhile, the average age of passenger vehicles reached 14.5 years, compared to 11.5 years a decade ago, extending the window for aftermarket service opportunities. Tim Pohanka, chief operating officer at Pohanka Nissan Hyundai, stated that service represents the biggest opportunity to maintain business stability amid market disruptions.
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