Auto Repair Services Agreement Template
A free auto repair services agreement and repair authorization covering the written estimate, the threshold above which additional work needs new approval, parts selection between OEM, aftermarket, and used, diagnostic fees, storage, and the warranty on parts and labor. Download in PDF or Word and fill in the bracketed fields.
Last updated: August 5, 2026
What Is a Auto Repair Services Agreement?
An auto repair services agreement is the repair order and authorization a shop has a vehicle owner sign before work begins. It identifies the vehicle, states the reported problem, records the written estimate, and captures the signature that authorizes the shop to perform that work. It also sets the terms that keep a routine job from becoming a dispute: what happens when the technician finds a second problem, whether the customer approves aftermarket or used parts, who keeps the replaced parts, and how long the shop will store a finished vehicle before storage fees begin.
Most states regulate this document directly. Auto repair is one of the most heavily consumer-protected services in the country, with statutes requiring a written estimate above a dollar threshold, separate authorization for work exceeding the estimate by a set percentage, disclosure of used or non-original parts, and return of replaced parts on request. A shop working from a verbal go-ahead is exposed on all of those points, and a customer who never saw an estimate has surprisingly strong rights when the invoice arrives.
When to Use This Template
- ✓A repair shop needs a signed authorization and estimate before starting work on a vehicle
- ✓Diagnostic work is needed before the full repair can be quoted
- ✓Additional problems are likely to be discovered once disassembly begins
- ✓The customer needs to choose between original equipment, aftermarket, and used parts
- ✓A fleet, dealership, or business customer sets up an account for recurring repair work
- ✓Vehicles are being left overnight and storage, towing, and lien terms need to be documented
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Full text of the template. Fields in [BRACKETS] are placeholders you fill in.
Auto Repair Services Agreement
1. 1. Parties, Vehicle, and Reported Concern
This Auto Repair Services Agreement and Repair Authorization (the "Agreement") is entered into on [DATE] between [SHOP NAME], located at [SHOP ADDRESS], operating under repair facility registration number [REGISTRATION NUMBER] where applicable (the "Shop"), and [CUSTOMER NAME], residing at [CUSTOMER ADDRESS] (the "Customer"). The vehicle is a [YEAR MAKE MODEL], VIN [VIN], license plate [PLATE], with an odometer reading of [ODOMETER] at intake. The Customer reports the following concern: [REPORTED CONCERN IN CUSTOMER WORDS]. The Customer confirms being the owner of the vehicle or being authorized by the owner or the lienholder to authorize repairs. Contact details for authorization decisions are [CUSTOMER PHONE AND EMAIL], and the Customer will remain reachable at those details during the repair.
2. 2. Diagnosis and Diagnostic Fee
The Shop will perform diagnostic work to identify the cause of the reported concern at a fee of [DIAGNOSTIC FEE] or [DIAGNOSTIC HOURLY RATE] per hour with an estimated [DIAGNOSTIC TIME]. The diagnostic fee is [DIAGNOSTIC FEE CREDIT, e.g., credited toward the repair if the Customer authorizes the recommended work at this Shop / charged separately in all cases] and is payable whether or not the Customer proceeds with the repair. Some intermittent conditions cannot be reproduced or isolated in a single diagnostic session, and additional diagnostic time requires separate authorization. Where a component must be disassembled to diagnose the fault, the Shop will inform the Customer in advance of the teardown charge and of the cost to reassemble the vehicle if the repair is declined, estimated at [TEARDOWN AND REASSEMBLY CHARGE]. The Shop will explain the diagnosis in plain language before requesting repair authorization.
3. 3. Written Estimate
Before work begins, the Shop will provide a written estimate itemizing parts, labor, shop supplies, taxes, and any disposal or environmental fees, totaling [ESTIMATE TOTAL]. The estimate is based on the condition of the vehicle as observed and on parts availability at the time of writing, and is valid for [ESTIMATE VALIDITY, e.g., 14 days]. Labor is calculated at [LABOR RATE] per hour using [LABOR METHOD, e.g., a published flat-rate guide or actual time], and the method is disclosed on the estimate. The Customer may accept the estimate, decline the work, or request a written estimate for alternative repair options. By signing this Agreement, the Customer authorizes the Shop to perform the work described in the attached estimate and no other work except as authorized under Section 4.
4. 4. Authorization for Additional Work
If the Shop finds that additional parts or labor are required, or that the total will exceed the written estimate by more than [AUTHORIZATION THRESHOLD, e.g., 10 percent or 100 dollars, whichever is less], the Shop will stop and contact the Customer for approval before proceeding. The Shop will describe the additional work, the reason it is needed, whether it is safety-related, and the revised total. Approval may be given [APPROVAL METHODS, e.g., in writing, by text message, by email, or by recorded telephone call], and the Shop will record the date, time, the person who approved, and the amount authorized on the repair order. Work performed without that approval, beyond the threshold, is not chargeable to the Customer. If the Customer cannot be reached, the Shop will hold the vehicle without further work and will not incur storage charges under Section 10 until [CONTACT GRACE PERIOD, e.g., 48 hours] after a documented attempt to make contact.
5. 5. Parts: New, Original Equipment, Aftermarket, Used, and Rebuilt
The Customer selects the parts preference for this repair: [PARTS PREFERENCE, e.g., original equipment manufacturer parts only / aftermarket parts acceptable / used or remanufactured parts acceptable where suitable / lowest available cost]. The Shop will disclose on the estimate and the final invoice whether each part supplied is new original equipment, new aftermarket, remanufactured, rebuilt, or used, and will note any part that is not new. Aftermarket, remanufactured, and used parts may differ from original equipment in fit, finish, and expected life, and are covered by the warranty in Section 7 and by any separate manufacturer warranty. Where the Customer supplies their own parts, the Shop [CUSTOMER-SUPPLIED PARTS POLICY, e.g., may decline to install them, and where installed provides no warranty on the part or on the labor to replace it if the part fails]. Core charges and shipping are itemized separately, and special-order parts may be non-returnable, in which case the Shop will say so before ordering.
6. 6. Return of Replaced Parts
The Customer may request the return of all parts removed from the vehicle, and the request should be made at the time of authorization so the parts can be set aside. Parts will be returned at pickup in the condition removed, in a container provided by the Shop. Parts that must be returned to a supplier as a core exchange or under a warranty claim, and parts that must be disposed of under environmental or safety regulations, cannot be returned, and the Shop will identify those on the invoice. Where a part cannot be returned, the Shop will show it to the Customer on request before it is sent back or disposed of. This section applies to the extent required by applicable state law, which may grant the Customer broader rights.
7. 7. Warranty on Parts and Labor
The Shop warrants its workmanship for [LABOR WARRANTY PERIOD, e.g., 12 months or 12,000 miles, whichever comes first] from the date of the invoice. Parts are warranted according to the terms of the manufacturer or supplier of the part, and the Shop will provide those terms on request; where the part warranty is shorter than the labor warranty, the shorter period applies to the part itself. To make a claim, the Customer will return the vehicle to the Shop, which has the first right to inspect and to repair or replace the defective part or workmanship at no charge for the covered item. The warranty does not cover: normal wear items; damage from accident, abuse, racing, off-road use, overloading, or neglect of maintenance; customer-supplied parts; work performed elsewhere on the same system; consequential damages such as towing, rental cars, lost wages, or lost income unless required by law; or a condition unrelated to the repair performed. This warranty gives the Customer specific rights, and the Customer may have additional rights under state law.
8. 8. Payment, Deposits, and Final Invoice
Payment in full is due when the vehicle is collected, unless a written account arrangement is in place at [ACCOUNT TERMS]. The Shop may require a deposit of [DEPOSIT AMOUNT OR PERCENTAGE] toward parts before ordering, particularly for special-order or non-returnable parts. The final invoice will itemize parts with their type, labor hours and rate, shop supplies, hazardous waste disposal, and taxes, and the total will not exceed the authorized amount without a documented approval under Section 4. Accepted payment methods are [PAYMENT METHODS]. Amounts unpaid after [PAYMENT TERM, e.g., 10 days] accrue a finance charge of [FINANCE CHARGE] per month or the legal maximum, whichever is less, and the Customer is responsible for reasonable collection costs. Returned payments incur a fee of [RETURNED PAYMENT FEE].
9. 9. Test Drives, Vehicle Custody, and Personal Property
The Customer authorizes the Shop and its employees to operate the vehicle on streets, highways, and elsewhere as necessary to diagnose, test, and verify the repair. The Shop will keep the vehicle secured during business hours and will store it in [STORAGE LOCATION, e.g., a fenced lot or inside the building] outside business hours, but is not responsible for damage caused by vandalism, theft, weather, falling objects, or acts beyond its reasonable control while the vehicle is on the premises, except where caused by the negligence of the Shop. The Customer will remove all personal property, cash, electronics, firearms, and valuables from the vehicle before leaving it, and the Shop is not responsible for items left in the vehicle. The Customer confirms that the vehicle is insured and that insurance remains in force during the repair. Keys will be released only to the Customer or a person authorized in writing at [AUTHORIZED PICKUP].
10. 10. Completion, Pickup, and Storage Fees
The Shop will notify the Customer when the vehicle is ready for collection using the contact details in Section 1, and will provide an estimated completion date of [ESTIMATED COMPLETION], understanding that parts availability and unforeseen conditions can extend it. The Customer will collect the vehicle within [PICKUP WINDOW, e.g., three business days] of being notified. Vehicles not collected after that window accrue storage of [STORAGE RATE] per day, which is itemized on the invoice and payable before release. A vehicle left uncollected and unpaid for more than [LIEN PERIOD, e.g., 30 days] after notice may be subject to a mechanic or repairman lien and sale under the procedure required by applicable state law, and the Shop will send written notice to the Customer and any recorded lienholder before taking that step. Storage does not begin while the Shop is awaiting a part it ordered late or is otherwise responsible for the delay.
11. 11. Safety Recommendations and Declined Repairs
The Shop will inform the Customer in writing of any condition observed that affects the safe operation of the vehicle, including brakes, tires, steering, suspension, lighting, and structural corrosion, whether or not it relates to the reported concern. The Customer may decline any recommended repair, and declined items will be listed on the invoice with a notation that the Customer was informed and chose not to proceed. The Shop is not responsible for damage, failure, or injury resulting from a repair the Customer declined or deferred, or from the Customer continuing to operate a vehicle the Shop identified as unsafe. Where the Shop believes the vehicle is unsafe to drive, the Shop may decline to release it under its own power and will offer to arrange towing at the expense of the Customer, and the Customer may sign an acknowledgment of the condition at [UNSAFE RELEASE ACKNOWLEDGMENT] where release is nonetheless requested and permitted by law.
12. 12. Towing, Subcontracted Work, and Sublet Repairs
Where the vehicle requires towing to or from the Shop, towing is arranged with [TOWING PROVIDER] at a cost of [TOWING RATE], billed to the Customer, and the Shop is not responsible for damage caused by an independent towing company selected by the Customer. Certain operations, including [SUBLET CATEGORIES, e.g., machine work, alignment, glass, upholstery, transmission rebuilding, and paint], may be sublet to a qualified specialist, and the Shop will disclose sublet work on the estimate and invoice. The Shop remains the point of contact and stands behind sublet work to the extent of the warranty provided by the specialist, and will pass through any longer warranty offered by that specialist. The Shop will not sublet work to an unlicensed provider where a license is required. Any subcontractor charge is itemized rather than absorbed into the labor rate.
13. 13. Dispute Resolution and Consumer Rights
The Parties will attempt to resolve any dispute directly and in good faith, and the Customer may raise a concern about the repair with [SHOP MANAGER CONTACT] within [COMPLAINT WINDOW, e.g., 30 days] of the invoice. Where a dispute is not resolved, the Parties may submit it to mediation in [MEDIATION LOCATION] before filing suit, and any proceeding will be brought in the courts located in [VENUE COUNTY AND STATE]. Nothing in this Agreement limits any right the Customer has under the consumer protection, automotive repair, or warranty laws of the state, including any right to a written estimate, to authorize work above a stated threshold, to receive replaced parts, or to file a complaint with [STATE REGULATOR OR BUREAU]. The Shop will retain the repair order, estimate, authorization records, and invoice for at least [RECORD RETENTION, e.g., three years] and will provide copies to the Customer on request.
14. 14. Governing Law, General Provisions, and Signatures
This Agreement is governed by the laws of the State of [GOVERNING STATE]. Except for the warranty obligations in Section 7 and injury caused by negligence or willful misconduct of the Shop, total liability under this Agreement will not exceed the amount charged for the repair at issue, and neither Party is liable for indirect or consequential damages except as required by law. This Agreement, with the attached estimate and any documented authorization, is the entire agreement between the Parties and may be amended only in writing. If any provision is unenforceable, the remainder stays in effect. AUTHORIZATION: I authorize the repair work described in the attached estimate and the use of the vehicle for testing as described above. CUSTOMER: [CUSTOMER NAME]. Signature: ______________________. Date: [DATE]. SHOP: [SHOP NAME]. Signature: ______________________. Printed Name and Title: [SHOP SIGNER]. Date: [DATE].
15. Disclaimer
This template is provided for general informational purposes only and is not legal advice. Automotive repair is regulated at the state level and often requires specific disclosures in specific wording, including written estimate thresholds, percentage limits on exceeding an estimate without new authorization, disclosure of used or aftermarket parts, the right to receive replaced parts, shop registration, and posted signage. Mechanic and repairman lien procedures are strictly statutory and must be followed exactly. Review and adapt this document for your state, confirm the required disclosures with your regulator, and consult a licensed attorney before relying on it. Use of this template does not create an attorney-client relationship with ScanContract.
Key Clauses Explained
What each important clause does — and what to watch out for before you sign.
Written Estimate
Itemizes parts, labor, supplies, and fees before work begins and captures the signature authorizing it.
Customers should never authorize a repair from a verbal number, since the estimate is the document that limits what can be charged. Shops should note that most states require a written estimate above a dollar threshold and that charging above it without documented approval can make the excess uncollectable regardless of how necessary the work was.
Authorization Threshold for Additional Work
Requires the shop to stop and get new approval before exceeding the estimate by a stated amount or percentage.
This is the clause that decides who eats a surprise. Customers should stay reachable during a repair and should confirm the threshold in the contract, since ten percent of a small job is not much room. Shops should record who approved, when, by what method, and for what amount, because an unrecorded phone approval is worth very little in a dispute.
Parts Selection and Disclosure
Lets the customer choose between original equipment, aftermarket, remanufactured, and used parts, with disclosure on the invoice.
Customers should ask what is actually being installed rather than assuming a quote implies original equipment, particularly on collision and suspension work where aftermarket fit varies. Shops should disclose non-new parts in writing, since undisclosed used parts are a specific violation in many state repair statutes.
Return of Replaced Parts
Gives the customer the right to receive the removed parts, subject to core returns and disposal rules.
Customers should ask for parts back at the time of authorization, not at pickup, because a core has usually already gone back to the supplier by then. Shops should note that this right is statutory in many states and that a blanket refusal is not defensible; identifying the specific exceptions on the invoice is.
Warranty on Parts and Labor
Warrants workmanship for a stated period and passes through the manufacturer warranty on parts.
Customers should note the right-to-inspect requirement: taking the car elsewhere for the redo usually voids the claim. Shops should be careful with the exclusion of consequential damages such as towing and rental, since some states limit that exclusion, and should not warrant labor on customer-supplied parts.
Storage Fees and Mechanic Lien
Charges daily storage for uncollected vehicles and reserves the statutory lien for unpaid repairs.
Shops must follow the mechanic lien statute in their state exactly, including notice to the owner and any recorded lienholder, because a contract clause alone does not create the right to sell someone vehicle. Customers should collect promptly and should note that storage can quietly exceed the repair bill on a vehicle left for weeks.
Declined Safety Repairs
Records safety conditions the shop identified and which recommendations the customer chose not to perform.
Shops should list declined items on the invoice rather than mentioning them verbally, since that record is the entire defense if a declined brake job later fails. Customers should take the written safety notes seriously and should understand that declining a repair shifts the consequences of that decision to them.
Test Drives and Personal Property
Authorizes road testing and disclaims responsibility for valuables left in the vehicle.
Customers should empty the vehicle before dropping it off, because the disclaimer on personal property is broad and generally enforceable. Shops should keep test driving limited to what diagnosis and verification require, and should confirm insurance status, since an uninsured vehicle on a test drive is a problem no clause solves.
Frequently Asked Questions
Can a shop charge me more than the estimate?▾
Do I have the right to get my old parts back?▾
What is a mechanic lien and can a shop keep my car?▾
Should I choose OEM, aftermarket, or used parts?▾
What does a repair warranty usually cover?▾
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