How to Write a Repair Estimate
Knowing how to fix a car is half the trade. Knowing how to charge for it is the other half. This lesson walks through a clean estimate that builds customer trust, protects your business legally, and prices labor like a pro.
The lesson
The 5 Sections of a Good Estimate
1) Customer + vehicle info (name, phone, VIN, mileage). 2) Concern (what the customer reported, in their words). 3) Cause (what you found during inspection). 4) Correction (what you'll do, parts + labor itemized). 5) Total + authorization line with signature.
Parts — Marked Up, Itemized
List each part with part number, brand, and price. Industry markup is 25-40% over your cost; OEM parts often less, aftermarket more. Don't hide the markup — customers respect transparency. Mention warranty (e.g., 12 mo/12k mi on parts and labor).
Labor — Use Book Time
Look up the job in Mitchell, AllData, or Chilton. They list standard 'book time' (e.g., 1.2 hrs for front brake pads). Multiply by your shop rate ($100-$150/hr is common in the US). You charge book time even if you finish faster — that's the industry standard and protects you on jobs that take longer than expected.
Shop Supplies & Disposal Fees
Charge a small flat fee (3-5% of labor, capped at $20-$30) for rags, brake clean, sandpaper, etc. Disposal fees for oil, coolant, refrigerant, and tires are real costs — pass them through, don't bury them.
The Authorization Line — your legal shield
Get a signature or recorded verbal approval BEFORE doing additional work. In most US states, estimates more than 10% over the original need re-authorization OR you legally cannot collect the overage. Document everything in the system — phone call notes, text screenshots, signed change orders.
Diagnostic charges — getting paid for your brain
Diagnostic time (1-2 hours at shop rate) is its own line item, separate from repair labor. Charge it. Many shops apply it as credit toward the repair if the customer authorizes the fix — but never give it away for free.
Tool list
- Repair info software (Mitchell1, AllData, or free RockAuto for parts pricing reference)
- Shop management software (Tekmetric, Shop-Ware, or even Google Sheets to start)
- Receipt printer or PDF generator
- Customer email/text system for sending estimates and authorizations
- Liability insurance (boring but required for any shop)
Safety — Read or get hurt
- !!Never start work without written authorization in many states — you can't legally collect.
- !!Be honest about what's actually needed vs. recommended. Reputation is everything in this trade — bad reviews kill independent shops.
- !!Save the old parts to show the customer — builds trust and proves work was done.
- !!Document every conversation. Phone records and texts save you in disputes.
Take the mini quiz
6 questions · pass at 80%