Independent vs Dealer: What drives Canadian service decisions

by | Oct 1, 2026 | 0 comments

For independent repair shops, competing with dealerships isn’t always about price. A new study from the Automotive Industries Association of Canada (AIA) examines how Canadian vehicle owners choose service providers, offering the latest insight into what brings customers through the door — and what keeps them coming back.

The research found that Canadian drivers aren’t neatly divided between dealership and independent customers. While 27 per cent say they always use a dealership, 23 per cent say they never do. Half use both dealerships and independent shops for maintenance and repairs.

That middle ground represents an important opportunity for independent shops.

When customers are looking for a new service provider, recommendations carry significant weight. 76 per cent of respondents said they would choose a provider recommended by a friend, family member or colleague. Price also matters, with 71 per cent identifying it as a factor, while 60 per cent look for providers recognized by programs such as CAA.

The study addresses the role that word-of-mouth and online research play in consumer decisions- and how they often work together. 31 per cent start their search through word-of-mouth, and 49 per cent of those people then conduct an online search. Conversely, 25 per cent start online, with 42 per cent of those eventually asking their personal network.

For independent shops, a referral may get a potential customer interested, but the shop’s online presence can help close the deal. This stat continues to illustrate indie shops’ responsibility in providing consistently high levels of personalized service, worthy of earning referrals, for that long-term customer base.

The study also highlights some perceptions that independent shops have an opportunity to address- nearly half of vehicle owners believe dealership technicians are more likely to be better trained than those in independent shops. Roughly a third believe taking their vehicle to an independent shop could void their warranty.

Whether or not those perceptions reflect reality, they can influence where a customer chooses to spend their money.

Communication can help. 68 per cent of respondents say they would trust a provider more if the same technician consistently worked on their vehicle. 67 per cent want more explanation about the impact of maintenance and repairs, while the same percentage would value help planning short-, medium- and long-term maintenance.

Among the independent-shop cohort, 41 per cent cited cheaper or fairer pricing as a reason, while 15 per cent pointed to trust, confidence or reliability.

But price isn’t the whole story.

The study wraps up that transparency, trust, customer service, quality work, fair pricing and technician knowledge are key factors in keeping customers, for both shops and dealers. A knowledgeable technician who explains what was found, why it matters and what the customer should expect next can build confidence that extends beyond a single repair.

With half of Canadian vehicle owners using both dealerships and independent shops, every service visit is an opportunity to turn a customer who is shopping around into a customer who knows where they’ll go next time.

For independent shops, the message is straightforward and familiar: fixing the vehicle is only part of the job.

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