Why Your Parts Department is Costing You Loyal Customers

When people think about dealership retention, they usually focus on service and customer perks. But there’s an unsung hero in every dealership that plays a massive role in keeping customers coming back: the parts department.

Too often, parts get treated as an afterthought—just a storage room for inventory. But if your dealership doesn’t have the right parts at the right time, service slows down, customer frustration builds, and loyalty takes a hit.

Kaylee Felio, aka the “Parts Girl,” knows this better than anyone. In a recent episode of Retention Roadmap, she shared hard-earned lessons from years of working with dealership parts teams. In this article, we’ll cover why parts are a make-or-break factor for retention, the biggest mistakes dealerships make, and the best strategies to turn your parts department into a customer loyalty machine.

The overlooked role of parts in customer retention

If your service department doesn’t have the right parts when a car rolls in, the whole operation grinds to a halt. Delays mean frustrated customers, and frustrated customers don’t come back. It’s that simple. Felio puts it this way: “If you don’t have the parts to serve your customers, then it’s like the full circle breaking down.”

Parts departments aren’t just support staff—they’re essential to fast, reliable service. Ignore them, and you’re handing business to your competitors.

Why inventory health directly affects retention

Dealerships are finally starting to see their parts inventory as an asset, not just a storage cost. A well-stocked inventory means faster repairs, better customer experiences, and more repeat business. But if you’re carrying too much of the wrong stuff—or running out of key parts—you’re burning cash and losing customers.

The goal isn’t just having parts on hand; it’s having the right parts, ready to go, when your customers need them.

Common parts department mistakes & how to avoid them

1. Poor inventory management leading to lost revenue

Parts managers deal with the constant headache of obsolescence—too many aging parts collecting dust while high-demand parts are out of stock. Stocking too little hurts service speed, but stocking too much eats into profitability.

The sweet spot? A balanced inventory that’s wide enough to meet demand but not so deep that you’re left with dead stock.

Fix: Instead of relying on manufacturer stocking recommendations, use real sales data to adjust stocking levels dynamically and avoid excess waste.

2. Treating tires as an afterthought instead of a core offering

A lot of dealerships treat tire sales like an inconvenience instead of a business opportunity. That’s a mistake. Tires are a high-frequency service need, and customers who buy tires from you are more likely to return for other services. But half-hearted efforts won’t cut it. As Felio says, “If you’re in the tire business, you’ve got to be all in—you can’t have one foot in and one foot out.”

Selling tires isn’t just about profit—it’s about keeping customers engaged so they don’t wander off to a competitor for their next service.

Shockingly, one in three dealership customers don’t even know their dealership sells tires. But when they do know, they’re 10% more likely to buy from their dealership instead of a big-box retailer or independent shop. (Check out DriveSure’s Dealership Service Retention Report for more info on this).

Fix: Dedicate space, inventory management, and marketing to tires—make sure your customers know you sell them.

3. Failure to align parts & service teams

If parts and service teams aren’t working together, customers feel it. Delays, miscommunication, and finger-pointing lead to longer wait times and lower satisfaction. At some dealerships, parts managers aren’t even in the loop on service demand until there’s already a problem.

Fix: Cross-train service advisors and parts teams to improve coordination. Some dealerships even do temporary role swaps so employees see things from the other side—helping build mutual understanding and smoother operations.

4. Not leveraging technology for customer communication

Customers expect updates. If a part is on backorder, they don’t want to chase you down for answers—they want clear communication. But many dealerships still rely on outdated systems, leaving customers in the dark.

Fix: Use automated tracking systems to keep customers informed about parts availability and estimated arrival times. Whether it’s text alerts or a customer portal, proactive communication reduces frustration and keeps customers loyal.

Winning parts strategies to retain customers

1. Make parts a selling point, not just a necessity

Most customers don’t think about a dealership’s parts department until they have to. That’s a missed opportunity. Dealerships should actively promote their parts and service capabilities, rather than just assuming customers know what’s available.

• Feature tires, OEM parts, and maintenance services in service lane signage, emails, and website content.
• Train service advisors to explain why dealership parts matter—like warranty protection, OEM quality, and trained technicians.
• Offer tiered pricing options for parts (budget, mid-range, premium) so customers feel like they have choices.

2. Stop treating tire sales as a one-off transaction

Tires aren’t just a purchase—they’re a customer touchpoint. Every tire sale should be seen as a chance to keep that customer engaged.

• When a customer buys tires, set up automatic service reminders for rotations and alignments.
• Offer a “Tire Club” loyalty perk (free rotations, discounts on alignments) to encourage return visits.
• Remind customers that the dealership sells tires. Nearly one-third of dealership customers don’t even know they can buy tires at their dealership.

3. Build trust through better parts communication

Customers don’t expect you to have every part in stock, but they do expect clear communication when something is backordered.

• Be upfront about delays and set realistic expectations.
• Use automated text alerts when special-order parts arrive to avoid “Where’s my part?” phone calls.
• If a delay is long, offer alternative solutions (e.g., a comparable part or temporary repair).

4. Offer convenience-driven parts services

Customers will stick with a dealership that makes parts-related services easier and faster.

• Pre-sell service parts—For example, if a tech spots brakes that will need replacing soon, offer a pre-order discount to secure that future repair.
• Create express service options for common parts replacements (batteries, brakes, wipers) so customers don’t look elsewhere for quick fixes.
• Make ordering parts easy—Consider an online order option with in-store pickup for busy customers.

5. Offer value-added services related to parts

Customers love free perks—especially when they relate to unexpected expenses like tires and repairs. Our research found that 46% of customers value free tire replacement for worn-out tires and nearly as many appreciate road hazard tire protection​. By offering value-added benefits, dealerships keep customers engaged and increase loyalty.

If customers know they’ll get perks like tire protection by coming to you, they’re much less likely to defect to independent shops.

The future of parts management: moving beyond the “Black Hole”

For years, parts departments have been treated as a dealership’s “black hole”—a place where inventory sits and nobody outside the department really understands what’s going on. But the dealerships that succeed in retention are the ones that bring parts into the bigger conversation.

As Kaylee Felio points out, parts managers shouldn’t just be order takers—they should be actively involved in planning and decision-making.

Whether it’s aligning pay plans across departments, improving communication between service and parts teams, or using real-time data to make inventory decisions, dealerships that modernize their approach to parts see better retention, higher efficiency, and more satisfied customers.

The bottom line? A well-run parts department isn’t just about selling parts—it’s about keeping customers coming back for life.

Want to take your retention strategy even further? Download the checklist to audit your service retention strategies, so you can uncover gaps, refine your service process, and turn more visits into long-term loyalty.