Automotive Repair Service Agreement

What a good one includes

• Clear vehicle identification details along with an explicit authorization clause allowing your technicians to operate the vehicle for diagnostics and road testing.
• A detailed teardown and diagnostic fee clause explaining that additional hidden damage discovered during disassembly will require a secondary written approval before work continues.
• Specific payment terms, accepted payment methods, and an explicit mechanic’s lien notice stating your right to retain the vehicle until the invoice is paid in full.
• A clear policy on parts sourcing, including whether you use OEM, aftermarket, or customer-supplied parts, along with the specific warranty terms for both labor and materials.
• A daily storage fee policy that triggers automatically if the vehicle is not picked up within a specified number of days after repair completion notification.
• A robust liability waiver protecting your business from pre-existing damage, loss of personal items left in the vehicle, or acts of nature while parked on your lot.

Common mistakes to avoid

• Accepting customer-supplied parts without a signed clause stating that you offer absolutely no warranty on those parts and will charge full labor rates for any subsequent replacement.
• Failing to secure a written or digitally logged authorization for additional repairs discovered mid-job, which often leads to unpaid invoices and legal disputes.
• Omitting a clear storage fee clause, leaving your shop yard cluttered with abandoned vehicles that you cannot legally charge for holding.
• Relying on vague verbal estimates instead of documenting a clear limit on how much the final bill can exceed the initial estimate without a new signature.

Frequently asked questions