How Automotive Service Pricing Reshaped the Competitive Landscape

This article was written by Joe Gibson, the Executive Vice President of Business Development and Growth at InteliChek Automotive, InteliChek Performance and AutoWise.

We’re now halfway through 2025 and for service departments and fixed ops strategists, the ripples from 2024 are still being felt.

Last year was anything but predictable. The automotive service industry saw pricing shifts that upended long-standing assumptions. Dealerships, often perceived as the higher-priced option, emerged as competitive leaders in several key categories. Meanwhile, regional differences and category-specific volatility opened the door to both growth and margin risk; for dealers and aftermarket providers alike.

InteliChek completed its comprehensive 2024 pricing analysis, and five clear insights emerged. These trends aren’t just retrospective, they’re strategic signals for 2025 and beyond.

1. Price Volatility Defined the Year

Throughout 2024, service pricing fluctuated significantly across categories. Some services saw steep price hikes, while others dropped sharply, reflecting a market still adjusting to post-pandemic consumer behavior and inflationary pressure.

• Front Brake Pads and Rotors at dealerships increased by 13.1%
• Battery Service fell 6.8% at dealers and 2.3% at aftermarket shops
• Check Engine Light Diagnosis dropped 6.5% at dealers and 10.9% at aftermarket

The volatility exposed areas of vulnerability for some service providers while offering pricing power for others.

2. Dealerships Broke the 'Overpriced' Stereotype

Contrary to consumer perception, 2024 proved that dealerships can, and did, outprice the competition—at least in several core services:

• Synthetic Oil Changes, especially when bundled with tire rotations, were cheaper at dealerships across all vehicle types
• Wiper Blades and 4-Wheel Alignments also remained competitively priced

These trends suggest a growing focus on price positioning from dealerships aiming to reclaim market share from aftermarket providers.

3. Diagnostics and Brakes: Dealerships' Pricing Blind Spot

Despite progress in some areas, dealers faced pricing challenges in two major service categories:

• Check Engine Light Diagnosis: Dealer pricing was 23% higher than the aftermarket
• Brake Services: Costs were up to 33% higher, and even higher for sedans and light trucks

These categories remain high-risk zones for dealers, where uncompetitive pricing could lead to lost volume and customer trust.

4. Regional Disparities Created Strategic Opportunities

One of the more impactful insights from 2024 was the role of geography in shaping service pricing strategy. Dealers who responded to local pricing dynamics saw greater gains.

• In the Midwest, dealers were able to command up to a 30.8% higher price for oil changes with tire rotations—while remaining cheaper than local aftermarket shops
• In the Southwest, brake service pricing required a 16.1% reduction to remain competitive

These regional patterns underline the need for localized pricing intelligence, not just national averages.

5. Pricing Became a Strategic Growth Lever

If 2024 taught the industry anything, it’s that pricing is no longer just an operational concern—it’s a growth strategy. Dealerships that monitored market shifts and adjusted accordingly positioned themselves for greater volume and better margins.

Key opportunities identified:

• Leverage competitive pricing in oil changes, tire services, and alignments
• Reassess premium pricing in diagnostics and brakes to prevent customer loss
• Use regional pricing data to adapt strategies based on local competition and consumer behavior

Where the Market Goes from Here

2024 wasn’t just a year of pricing shifts, it was a reset. Dealerships began to dismantle the outdated “overpriced” narrative and showed that strategic pricing can win back customers and market share.

The data is clear: pricing is no longer reactive. It’s a proactive growth lever. As we navigate the second half of 2025, those who apply the insights from 2024 (not just review them) will set the pace for service competitiveness, profitability, and customer trust in the years ahead.

This article was written by Joe Gibson, the Executive Vice President of Business Development and Growth at InteliChek Automotive, InteliChek Performance and AutoWise.

This is a DMM Brand Partnership Initiative.