Is Customer Satisfaction with Car Dealership Service Improving in 2024?

Customer satisfaction with car dealership service improved in 2024, according to the latest J.D. Power Customer Service Index (CSI) Study. After a notable dip in 2023—the first in 28 years—the industry-wide score increased by 5 points to 851 on a 1,000-point scale. However, this modest improvement occurs against a challenging backdrop of longer wait times and significantly higher service costs, indicating that owners are adapting to a new, less convenient normal.

What Are the Latest Customer Satisfaction Rankings by Brand?

The J.D. Power study, which surveyed 64,781 owners and lessees of 1-to-3-year-old vehicles, measures satisfaction across five key areas: service quality (32%), service advisor (19%), vehicle pickup (19%), service facility (15%), and service initiation (15%). Recognizing differing expectations, the results are split into two categories: premium and mass-market brands.

Premium Brands: Lexus Leads for a Third Consecutive Year Lexus maintained its top position in the premium segment with a score of 897. The segment average was 866. The most significant movements came from Jaguar, which jumped five spots to rank 6th, and Volvo, which fell to 13th place.

Mass-Market Brands: Buick and Mini Make Big Gains The mass-market segment saw more volatility, with an average score of 848. Buick gained 20 points to take the top spot, while Mini’s 30-point increase propelled it to second place. Mitsubishi was the only brand in the top five to see a score decrease from 2023.

Why Are Service Wait Times and Costs Increasing?

Beyond the overall satisfaction score, the 2024 study reveals two pressing issues for vehicle owners: longer wait times and higher costs.

• Appointment Wait Times: Owners of mass-market vehicles now wait an average of 5.2 days for a dealer service appointment, while premium-segment owners wait 5.4 days. These timelines are longer than pre-pandemic norms. In fact, the ability to get a prompt appointment has now surpassed lower cost as the primary reason owners choose independent repair shops over franchised dealerships.
• Rising Service Costs: The financial burden of maintenance has increased sharply. J.D. Power reports that the cost of a service visit has risen 30% over the last two years. Premium-brand owners now pay an average of $380 per visit (up $66 from 2023), while mass-market owners pay an average of $140 (up $15).

How Can Dealerships Improve the Service Experience?

The data points to a clear opportunity for service departments to enhance customer satisfaction through modern communication. Survey respondents were four times more likely to prefer updates via text message than phone calls. Furthermore, satisfaction with the service advisor—the primary point of contact—jumped to 911 points (versus 880) when customers received photos or video evidence supporting the technician's inspection conclusions.

Chris Sutton, J.D. Power's vice president of automotive retail, noted, “It’s encouraging to see an improvement in service satisfaction, but unfortunately, the capacity and wait time issues have gotten progressively worse since the pandemic and show no immediate signs of easing up.”

Are Electric Vehicle Owners Less Satisfied with Dealer Service?

The study highlights a significant challenge for dealers servicing electric vehicles (EVs). As EV sales move "out of the early adopter phase," trust in dealer service departments is lower among non-Tesla EV owners. They rated dealer trust an average of 5.62 on a 7-point scale, compared to 6.00 for owners of internal combustion engine vehicles.

This trust gap is exacerbated by two factors based on our assessment experience:

1. Higher Recall Rates: Non-Tesla EVs were recalled more than twice as often as gas-powered vehicles.
2. Lower Recall Repair Satisfaction: EV owners reported the lowest satisfaction with recall repairs (782) compared to owners of gas (832), diesel (831), and hybrid (827) vehicles.

What Do the 2024 Segment Rankings Reveal?

Drilling down into specific vehicle types provides a clearer picture for shoppers. Here are the top-ranked brands in key segments:

Mass-Market Cars: Mini led the segment with a 38-point gain.

• Top 3: Mini (877), Subaru (874), Mazda (867)

Premium Cars: Porsche took the top spot, narrowly ahead of Infiniti.

• Top 3: Porsche (902), Infiniti (900), Lexus (892)

Mass-Market SUVs/Minivans: Buick ranked highest in this large segment.

• Top 3: Buick (887), Mitsubishi (877), Subaru (877)

Premium SUVs: Lexus held onto its leading position.

• Top 3: Lexus (898), Porsche (889), Cadillac (882)

Pickup Trucks: Nissan led the category for the second consecutive year.

• Top 3: Nissan (873), Chevrolet (856), Toyota (855)

Key Takeaways for Car Owners

While the industry-wide satisfaction score has improved, the 2024 J.D. Power study underscores a reality of higher costs and longer waits. To navigate this environment, owners should prioritize dealerships that offer modern communication tools like text updates and digital vehicle inspection reports. For EV owners, especially those with non-Tesla models, it's crucial to research a brand's local dealer service reputation before purchasing, as satisfaction levels currently lag behind those for traditional vehicles. The slight overall increase in satisfaction suggests that customers are adapting their expectations, but the underlying service capacity issues remain a significant challenge.