What should my warranty policy be on parts and labor?
Short answer
Match or slightly beat your parts supplier's warranty on parts, and offer a clear labor warranty of 12 months or 12,000 miles on your own workmanship, in writing, on every invoice.
Separate parts warranty from labor warranty clearly
Parts warranties come from your supplier or manufacturer, and you're often just the pass-through. Labor warranty is yours to set, and it's the one that tells a customer you stand behind your own work, not just the box the part came in.
Put the exact terms on every invoice, not in a drawer
A verbal 'yeah we warranty our work' means nothing when a customer is upset three months later. Print the specific warranty period, what it covers, and what voids it directly on the invoice they take home.
Common terms that work for most independent shops are 12 months or 12,000 miles on labor, whichever comes first, with parts covered per the manufacturer's terms passed through as-is.
Decide your exceptions before a customer forces the issue
Modified vehicles, commercial use beyond what was disclosed, and damage from an unrelated failure should be excluded, and that exclusion should be written down, not improvised at the counter during a dispute.
Warranty policy for the invoice footer
WARRANTY POLICY Labor: [Shop Name] warranties all labor performed for 12 months or 12,000 miles from the date of service, whichever occurs first. This covers defects in workmanship on the specific repair performed. Parts: Parts are covered under the manufacturer's or supplier's warranty terms, which vary by part and are provided at time of sale. [Shop Name] will assist with any manufacturer warranty claim on parts we supplied. Exclusions: This warranty does not cover damage from misuse, accident, modification after service, failure to follow recommended maintenance, or unrelated component failure. Commercial or fleet use beyond what was disclosed at time of service may affect coverage, check with us before assuming coverage applies. Customer-supplied parts carry no labor warranty from [Shop Name]; see our customer-supplied parts policy.
Where owners get this wrong
- Only having a verbal warranty policy with no written terms on the invoice.
- Not distinguishing parts warranty from labor warranty when a customer disputes a comeback.
- Warranty terms that differ depending on who's at the counter that day.
Worth knowing: Check your state's rules on required warranty disclosures, some states have specific implied warranty or consumer protection requirements for repair shops.
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