Tips for Companies Using Auto Repair Contracts with Customers

As an auto repair shop, you may need to enter into a contractual agreement with your customers about the repairs you provide. This guide will help you understand auto repair contract templates and how you can apply them to your shop’s workflow.

In This Guide We’ll Discuss:

• What an Auto Repair Contract Template Includes
• What Clauses You Should Cover
• How to Present the Contract to Customers
• Additional Resources
• Sending and Signing Contracts Securely

The basic information you need to cover in an auto repair contract template will give you and your customer a clear understanding of what services are performed and what warranties you are giving to that service. Make sure the contract covers:

• Services provided
• Name and contact information on parties
• Fee structure
• Late payment policies
• Warranty on work
• Governing law contract

If you are filling in an auto repair template, make sure you include the right protections. These clauses protect both the repair technician and the customer from miscommunications:

• Default Clause – Here, you will outline what conditions mean one of the parties is in default of the contract. This might include failure to make a payment or failure to perform the agreed-upon services.
• Force Majeure Clause – If something outside of either party’s control makes it impossible to complete the contract, the force majeure clause provides protection. IT outlines the types of natural disasters or unforeseen events that would make the contract less binding.
• Severability Clause – Here, the contract states that if some part of the contract is found invalid or unenforceable, the remaining provisions and clauses remain in effect.
• Late Payments Clause – If you are going to allow payment plans from your customers, you will want to outline what the late payment fee is going to be.
• Confidentiality Clause – On occasion, auto repair ends up creating confidentiality concerns. This clause will tell the customer what information remains confidential and ensures the mechanic is only bound during the terms of the contract.
• Warranty Clause – If the auto repair company offers any type of warranty on the work, this is outlined here.

Auto repair contracts are less common than other types of service contracts, but that does not mean they are less valid. However, because customers are not always used to signing a contract before having their cars repaired, you might need to present it carefully.

When presenting an auto repair contract, outline the benefits for the customers. Then, indicate that you require this of all customers simply for their protection and yours. Make sure you require the signature before any work on the vehicle begins, and consider having someone walk the customer through the document to understand its various clauses and terms. To make the signature collection simple and fast, consider using Nitro Sign.

For more information about using auto repair contract templates, visit:

• Better Business Bureau: Tips on Auto Repair Service Contracts
• FTC: Auto Warranties and Service Contracts
• NOLO: Automobile Service Contracts

Once you have customized your auto repair contract template, you need to have it signed. Nitro Sign has convenient processes for sending contracts and other vital documents and having them signed electronically. Add this to your workflow to make the service contract process as simple as possible. Sign up for a free trial of Nitro Sign to see how simple it is to work this into your repair workflow and securely send and receive documents with your customers.