What to put on an auto repair invoice
A repair invoice is also a service record — for your customer, for any future buyer of the car, and for you if a repair is questioned. Many states have specific rules for auto repair invoices, so check yours. Most expect at least:
- The vehicle — year, make, model, VIN and the odometer reading
- Labor, described clearly, with hours and rate
- Parts, each listed with a price, and whether they're new, used or rebuilt
- Shop supplies and disposal fees, if you charge them
- Warranty terms for parts and labor
- Work recommended or declined — useful later if a problem appears
Example auto repair invoice
| Line item | Qty | Rate | Amount |
|---|---|---|---|
| Vehicle: 2019 Honda Civic, VIN …4821, odometer 68,412 mi | 1 | $0.00 | $0.00 |
| Labor – replace front brake pads and rotors (1.8 hrs) | 1.8 | $120.00 | $216.00 |
| Parts – front brake pads, ceramic (set) | 1 | $64.99 | $64.99 |
| Parts – front brake rotors | 2 | $72.50 | $145.00 |
| Labor – oil and filter change (0.5 hr) | 0.5 | $120.00 | $60.00 |
| Parts – 5W-30 synthetic oil, 5 qt, and oil filter | 1 | $46.80 | $46.80 |
| Shop supplies and disposal | 1 | $18.00 | $18.00 |
| Total | $550.79 |
The vehicle line is at $0 so the car's details appear on the invoice. You can also put them in the PO field or in the notes.
Labor: book time or actual time?
Many shops bill labor by book time — the standard time a repair guide gives for the job — whatever the job actually took. Others bill actual hours. Either is fine if your customer knows in advance. Put the hours on the line, as in the example, so the labor charge is clear.
Estimates before work
Several states require a written estimate before you start, and the customer's approval before you go over it by more than a set amount. Even where it isn't required, it prevents disputes. Make the estimate first; once the customer approves, Convert to invoice carries the vehicle, parts and labor over.
Sales tax on parts and labor
In most states, parts are taxable. Labor is taxed in some states and not in others, and some tax shop supplies and disposal fees. If your state only taxes parts, add the tax to the parts lines yourself or check with your state's tax agency about how to show it.
Tax notes for mechanics
If you work for yourself — a mobile mechanic or a small shop owner — your tools, diagnostic equipment, lifts, shop rent, insurance and training are business expenses. Parts you buy and resell to customers are a cost of goods sold. See how much of each payment to set aside with the 1099 tax calculator.
Frequently asked questions
Do I need to give the old parts back?
In some states, customers have the right to get replaced parts back if they ask before the work. Some shops offer this on the estimate. Check your state's rules.
How do I show a part the customer supplied?
Add a line such as "Customer-supplied part – installation only" with the labor, and note that your parts warranty doesn't cover it.
Can I use this for a mobile mechanic business?
Yes. Add a call-out or travel fee as its own line.
How do I record the mileage?
Put it on the vehicle line, as in the example, or in the PO field. It will appear on the PDF either way.