Auto Repair Contract

What is an auto repair contract?

An auto repair contract is a legally binding agreement between a vehicle owner and a repair technician regarding the provision of professional auto repair services. This document defines a rigid legal framework for cooperation between an owner of a vehicle and a technician regarding the following:

• scope of work (e.g., maintenance, diagnostics, repairs);
• exact date or schedule when the work should be done;
• payment terms (e.g., repair fees, diagnostic fees);
• parties’ rights and responsibilities;
• warranty terms;
• additional authorization (e.g., lien notice, test drive authorization); and
• termination clause.

An auto repair contract sample could also be referred to as a car repair contract, as it could be used for various types of vehicles, including boats, cars, buses, etc.

The parties involved in a contract are a mechanic and a client.

The mechanic is a professional auto repair business or independent mechanic who has the necessary skills and qualifications to provide requested services. In some car repair contracts a mechanic could also be referred to as a service provider. This is so because the present contract is a special type of a general service agreement. By virtue of the mentioned general service agreement, a service provider renders a specific scope of professional services in exchange for remuneration.

There is no licensing requirement for a mechanic on a federal level. Though, the client is advised to check states’ laws, as some states may require a mechanic to have a valid technician license (e.g., Colorado, California, etc.).

The client is an individual or legal entity that orders auto repair services for their vehicle. A standard auto repair contract template usually includes a disclaimer stating that a client is a vehicle’s owner, who has all rights and responsibilities to transfer and dispose of such a vehicle.

How to Draft an auto repair contract template?

Creating a solid auto repair contract template involves careful attention from both parties. Failure to include a number of important considerations may result in various negative legal consequences. We made a short breakdown of specific clauses a solid car repair contract should have.

Scope of Services

Rule number one is to include as many details as possible regarding the services that should be provided. On top of that, every car repair contract sample should also address:

• Usage of subcontractors: parties may agree to allow or to prohibit a mechanic from using subcontractors in the provision of services.
• Location of services: to which location a client should drop off their vehicle for provision of services;
• Details of a vehicle: parties have to include a vehicle’s make, year of manufacture, VIN, and type;
• Additional information: a contract may describe a vehicle’s conditions or technical problems.

Usage of Spare Parts and Warranty

A solid car repair contract template should address the process of removal of old or broken spare parts and components. To avoid potential disputes along the road, the parties should answer the questions below:

• Should removed parts and components be returned back to a client?
• Which types of new spare parts can a mechanic use—e.g., rebuilt, new, used, or both?
• What happens to a contract once a mechanic cannot provide required spare parts—e.g., termination, decrease of fees?

A warranty for provided services is another essential clause a car repair contract sample should include. A warranty for provided services means a period of time during which a mechanic guarantees no default in the work done and undertakes to fix any issues related to such work at no extra charge. Usually a guarantee period is measured in days or months. However, for a car repair contract, it is common to have a guarantee period to be measured in miles.

A warranty period for provided services should not be confused with a warranty period for replaced spare parts or components. The warranty period does not depend on the quality of services delivered by a mechanic. Instead, it depends on a manufacturer of those parts.

Lien Notice

The local legislation of all states allows the mechanic to retain possession of the vehicle until full payment is made by the client. Therefore, a car repair service contract template should include a lien notice allowing a mechanic to retain a vehicle.

Inclusion of a lien notice in an auto repair contract is rather a party’s right than an obligation.

Storage of the Vehicle

It is a good business practice to address a storage policy for a vehicle in a sample contract for car repair services. A storage policy could be particularly useful in situations when the services were rendered, a client made a payment in full but failed to pick up their vehicle. Therefore, a contract’s template should address the following aspects:

• pick-up deadline—a period of time after services are provided within which a client shall pick up their vehicle;
• storage responsibility—inclusion of a mechanic’s obligation to keep a vehicle safe until collected by a client; and
• storage fees—a daily rate a mechanic can charge for keeping a vehicle. This fee should be paid separately from main services fees.

A standard car repair service contract template allows a mechanic to sell a vehicle if a client fails to pick it up within a certain period of time. Usually, this period may vary between 30 and 90 days from the original pickup date.

Additional disclaimers

It is common for an auto repair contract sample to include a number of additional rights and authorizations a mechanic may need for the provision of services. Amongst them are the following:

• authorization for a test drive—i.e., a mechanic shall have a right to ride a car in order to test it;
• no liability for personal belongings—i.e., a mechanic shall not be liable for the loss of a client’s personal belongings left in a vehicle;
• photographic consent—i.e., a mechanic shall have a right to post photos of a vehicle for documentation, marketing, and promotional activities.

Parties are free to include any other limitations or disclaimers in the text of a contract.

How to customize a car repair contract template at Faster Draft?

To personalize a document’s template, follow a few easy steps below:

1. Click the button “Create Document.”
2. Answer simple questions in the questionnaire.
3. Select a document’s format—auto repair contract PDF or Word.
4. Make a payment.
5. Download, print, and use a customized document’s template in seconds.