Guide to Understanding Car Repair Estimates

A car repair estimate is like an agreement between you and the auto shop about what work will be performed, what the parts will cost, and rough charges for the labor. The reason it is called an estimate rather than a contract is that it is not binding. It can be modified with authorization by the vehicle owner and the final price is subject to change based on the hours of work required to complete the job. While it may not carry the same legal weight as a signed contract, it is a very crucial item to protect both business and client.

Estimates will vary greatly by mechanic and auto shop, not only in appearance and details, but in pricing as well. It is highly recommended to shop around as much as possible especially if you have successfully diagnosed the problem already (a professional estimate with diagnostics can be expensive). A complete estimate will include all parts required as well as cost, labor, any other materials required such as fluids, and flat fees such as the cost of any initial inspection. There should be a summary of the total cost as well as a detailed explanation of which work is to be performed.

Many drivers overlook one of the most important sections of their car repair estimate—parts. Mechanics source components from a variety of places and this will greatly affect the cost and possibly even performance of your vehicle. Most parts will fall into one of four categories: new from original equipment manufacturer, salvaged, aftermarket, and remanufactured. Check to make sure you estimate explicitly states which will be used.

New OEM parts are made specifically for your vehicle's make and model, so you can be assured there will be no compatibility issues. However, these are generally higher priced than the other options which may be just as good. At the opposite end of the spectrum, some shops visit salvage yards to pick up used parts (or you can find them yourself online). This is clearly the best for your budget, but there is more of a risk depending on which part is needed. Aftermarket refers to new parts that are made by a company separate from the vehicle maker, knocking the price down lower than OEM in most cases. Remanufactured means OE parts that have been rebuilt and are on a similar level of desirability to OEM.

When assessing the potential labor charges, remember that this is where fraud is most likely to occur. You won't be present while they're working and if you know little about cars, there is no way to tell how long the job should take. You should ask what their hourly fees are and what constitutes an hour. Some shops will take great liberties in rounding off the minutes in their favor. If a job goes ten minutes over an hour, you should not be charged for another full hour. Be wary of any car repair labor estimate that is greatly inflated once you receive the final bill.