Auto mechanic invoice template

Mechanic invoice FAQ

What goes on an auto repair invoice?

Vehicle info (year, make, model, VIN, mileage), customer and contact, diagnostic findings, labor (book hours × rate, or actual time × rate), parts with markup, shop supplies fee (if used), tax breakdown, warranty terms, and any carryover or pending work. Most states require auto repair shops to provide a written estimate over a threshold ($50-$100 commonly) and a written invoice on completion.

Should I bill from labor book hours or actual time?

Labor book hours (Mitchell, AllData, Chilton) is industry-standard for retail repair. The customer pays the book time regardless of how long the actual job took. This protects skilled mechanics from being penalized for efficiency. Some shops bill actual time on diagnosis, on warranty work, or on uncommon vehicles where book hours are inaccurate. State which method you used in the description.

What's a reasonable parts markup?

Retail parts markup runs 30-100%, with 50-70% being common. OEM dealer parts often have lower markup (20-40%) because of higher wholesale cost. State the part description and price; customers don't expect to see your wholesale cost but they want to see what part was used and where it came from. Note OEM vs aftermarket on the line item.

Should I charge a diagnostic fee?

Yes: diagnostic time is real labor, and not charging for it is how shops lose money on "quick check" requests. Common: $80-$150 flat diagnostic fee, often credited toward repair if the customer authorizes work. When you credit it, say so in the notes ("$120 diagnostic fee credited toward this repair") and take that amount off the labor line, since Issueable has no credit lines. Customers respect transparent diagnostic billing more than free-diagnosis-but-mystery-pricing.

What about shop supplies and hazmat fees?

Shop supplies (rags, lubricants, fasteners, sealant) are typically billed as a percentage of labor (3-7%) or a flat per-job amount ($5-$25). Hazmat fees cover used oil, coolant, refrigerant, and battery disposal, typically $5-$15 per relevant service. List them as separate line items so customers see the breakdown; bundling into labor hours invites distrust.

What warranty should I offer?

Most shops warranty repairs for 12 months / 12,000 miles on parts and labor. Major repairs (engines, transmissions) often carry longer warranties (24/24K or 36/36K). Manufacturer's part warranties may be longer than your labor warranty; state both. Specify what voids it (DIY repair, modification, abuse, off-road use). List it in the terms on every invoice.

Do mechanics charge sales tax on labor?

Most states tax parts but not auto repair labor. Some states tax both. Texas taxes the parts but not the labor on motor vehicle repair. California exempts most labor. Note: this is for repair work, new vehicle sales and warranty work follow different rules. Issueable applies tax to the whole invoice, so bill parts and exempt labor on separate invoices where your state allows.

How do I handle declined work and carryover?

When a customer declines additional recommended work (typically surfaced during diagnostic), document it on the invoice in the notes: "Customer declined: front brake pads (3mm remaining), serpentine belt (cracked)." This protects the shop if the declined items later cause a problem and the customer claims you didn't tell them. Carryover is the same. Note pending work the customer scheduled for a return visit.