GenerateMyInvoice

Car Repair Invoice: What Auto Shops Must Include

Auto repair is one of the most regulated invoices a small business writes. The good news is that doing it properly also heads off most disputes.

Auto repair invoice on a clipboard resting on a car tire in a workshop

Car repair invoices do more than ask for payment. They record what was done to a specific vehicle, which parts went in, and what's guaranteed. Several US states and other countries have specific rules for them, because disputes over repairs are common and consumers can't easily check the work.

What a car repair invoice should include

Shop details

  • Business name, address, phone
  • Registration or license number, if your state requires one (for example, California requires the Bureau of Automotive Repair registration number on invoices)

Customer and vehicle

  • Customer name and contact details
  • Vehicle year, make and model
  • VIN and/or license plate
  • Odometer reading in and out

The work

  • Date the vehicle came in and date completed
  • Customer complaint or reason for visit
  • Work performed, described clearly
  • Parts: each part, whether it's new, used, rebuilt or reconditioned, quantity and price
  • Labor: hours (or flat-rate book time) and rate, or total labor charge per job
  • Sublet work (sent out to another shop), listed separately
  • Shop supplies and hazardous waste disposal fees, if charged

Totals and terms

  • Parts subtotal, labor subtotal, fees
  • Sales tax (usually on parts; varies by state)
  • Total, amount paid, balance
  • Warranty terms
  • Signature line for authorization, if used

Example

Description Qty Rate Amount
Diagnose brake noise, front 0.5 h $120.00 $60.00
Replace front brake pads and rotors: labor 1.8 h $120.00 $216.00
Front brake pads, ceramic (new) 1 set $68.00 $68.00
Front rotors (new) 2 $74.00 $148.00
Brake fluid flush: labor 0.6 h $120.00 $72.00
DOT 4 brake fluid 1 L $18.00 $18.00
Shop supplies 1 $12.00 $12.00
Subtotal $594.00
Sales tax 7% (parts and fluid: $234.00) $16.38
Total $610.38

Vehicle: 2019 Honda Civic, VIN 2HGFC2F5XKH000000, plate 7ABC123. Mileage in: 48,210. Mileage out: 48,214. Parts and labor warranted for 12 months or 12,000 miles, whichever comes first.

Estimates and authorization

Many states require a written estimate before work starts and the customer's authorization before exceeding it. California, for example, generally requires a written estimate and consent before any work that exceeds it. Other states have similar rules, sometimes with a tolerance (such as 10% or a fixed dollar amount).

Good practice everywhere:

  1. Written estimate, signed or approved by the customer
  2. If you find more work, stop and call, record the approval (who, when, amount)
  3. Note additional authorizations on the invoice: "Additional work authorized by phone, 10 Sept 11:40 am, by customer: $185.00"

Returning old parts

Some states require shops to offer the replaced parts back to the customer (except warranty or core-exchange parts). Even where it's not required, offering them builds trust. A tick box on your paperwork ("Customer requested return of old parts: yes/no") covers it.

The Duplicate book template mirrors the carbon-copy repair orders customers expect.

Use the Duplicate book template

Sales tax

In most US states, parts are taxable and labor often isn't, but not everywhere. Listing parts and labor separately, as above, is what lets you tax only the right lines. In the generator, use Per line tax to set a rate on parts and 0% on labor.

Payment and releasing the vehicle

Most shops require payment before the vehicle is released. In many states, a repair shop has a mechanic's lien on the vehicle for unpaid repair charges, though the procedure and limits vary. Put your payment policy on the estimate and invoice so it's clear up front.

Keeping records

Keep copies of repair orders and invoices. Some states set a minimum period for repair records (often a few years). Records also protect you in warranty disputes.

This is a general overview. Auto repair is regulated at state level in the US, so check your state's consumer affairs or automotive repair bureau for exact requirements.

Hafiz

Hafiz runs GenerateMyInvoice and writes its guides on invoicing, payment terms and getting paid on time.

This guide is general information. For decisions about tax or legal action, check with an accountant or lawyer where you work.