Inventory Management Best Practices for Auto Repair Shops

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May 22, 2023

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Read time: 3 min

The answer to that question depends on a number of factors, and getting the right categorization for each part is crucial for maintaining healthy profit margins while minimizing the risk of rush orders and frustrated customers.

Inventory and Stock Management to Minimize Complexity

When you and your team are replacing parts during repairs, it’s important to consider what parts you have on hand versus what parts you’ll need to order.

If you don’t, you risk overstocking and sinking money into too many units of a particular type of part, or understocking and making a customer wait while you hope that the expedited shipping for a part pulls through.

By having the right inventory and stock management processes in place, you can make it easier for your service advisors and technicians to avoid frustrations.

Here are some best practices for inventory and stock management at your auto repair shop.

What Counts as Inventory? What Counts as Stock?

First, a quick refresher on the difference between inventory and stock.

“Inventory” includes the parts you sell to customers and the parts that your shop uses to make repairs (such as wrenches, alignment machines, and engine hoists).

On the other hand, “stock” only includes the parts you sell to customers during the usual course of repair work.

Regardless of whether a part falls under inventory or stock, it’s crucial to label every single parts transaction to reduce your risk of accounting gaps, billing inconsistencies, and more.

You can avoid these pitfalls by creating a streamlined parts management and reconciliation process.

Make Any Necessary Adjustments to Your Parts Sorting System

It might seem natural to label all your parts, even the ones you purchase multiple times per month, as inventory. However, while this process seems efficient, it introduces two problems.

First, you won’t be able to get the clearest view of your shop’s metrics. Say you buy spark plugs and sell them to your customers over 30 times a month.

If you count them as inventory, you won’t have a clear picture of just how many spark plugs you’re purchasing a month.

Second, you’ll be adding another layer of complexity to your inventory list. If you buy spark plugs, log them as inventory, then sell them to customers and put them in their vehicles, you’ll have to log all of those steps.

This can quickly lead to confusion.

If you count the spark plugs as part of stock, you’ll have a much clearer view of the metrics and will be better able to track whether or not you have enough of this oft-used, essential part.

The best way to determine when you should count a part as stock as opposed to inventory is to ask yourself these basic questions:

  • What is the business function of this part?
  • How often does my shop order this part?
  • Is this part sold to customers?
  • How often does my shop sell it?  

The answers to each of these questions will get you to your answer. For example, a tire’s business function is to be used in a customer’s vehicle (meaning, you sell it to the customer). If your shop orders a particular brand and size of tires an average of 40 times per month and sells it an average of 38 times per month, you should categorize that as stock.

Accurately Maintain and Track Stock levels

Ordering too much of a stock part can cut into your shop’s profit margin, but ordering too little of it could keep customer vehicles at your shop longer.

How much of a part to order, and how often to place those orders, depends on your shop’s unique circumstances.

For instance, let’s say you determine that your shop needs to sell customers a part only an average of ten times per month, and a few nearby auto parts stores tend to keep that part in stock.

In that case, you could adopt a “just-in-time” approach toward that part, buying it as close as possible to the time you’ll need it.

Tekmetric: A Shop Management System That Makes Managing Parts Easy

Metrics are the key to accurately maintaining and tracking your stock levels, however, tallying these numbers by hand can be time-consuming. By using a shop management system like Tekmetric, you can simplify and speed up the parts management process.

With Tekmetric, you can log parts as on-hand, in-use, ordered, and above stock or below stock.

You can also filter parts by brand, part name, part number, retail price, and primary vendor and see exactly how many units of each part you have available at your shop—and how much each unit costs to buy.

Additionally, you can directly order parts and create parts markup matrices from Tekmetric.

This article was written with the guidance of automotive repair industry CPA
Hunt Demarest of
Paar, Melis, & Associates, P.C.

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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If you run an auto repair shop, chances are you have customers that think they know what’s going on with their vehicle as soon as they set foot in your shop. Although customers with preconceived assumptions can be frustrating at times, we have to give drivers credit for doing their research, especially now when we have a wealth of information at our fingertips.

You’re probably thinking to yourself, “Yes, but automotive repair estimates online aren’t always the best source of information.” And you’re right. But let’s think about ourselves for a second. As people who have experienced the world and have naturally developed our own worries, fears, and doubts, we tend to trust our own intuition and symptom-research sometimes more than we trust professionals.

And it’s a well known fact that consumers have a hard time trusting the auto repair industry—or any business that gives customers diagnoses for that matter. Just as people look up their symptoms online, and come to a conclusion on WebMD, they tend to do the same thing when something is wrong with their vehicle.

Whether it’s true or simply a situation where someone is convincing themselves they have said illness, the internet isn’t going anywhere. And let’s face it, we’re all guilty of using the internet for quick and easy answers, which is why it’s important to empathize with customers. Just as they may Google their symptoms, it is likely that they might type into the search bar, “Why is my car making a rattling sound?”

Of course, it is highly possible that the results that populate aren’t necessarily what an auto repair pro would point out to them. But whatever they find online still gives them some peace of mind, knowing they are informed before stepping foot into an auto repair shop that they may or may not trust.

It’s inevitable: people feel more protected if they understand—or even slightly understand—the issue at hand first.

Now, take a step back and think to yourself where your customers are getting their car repair information from. If you answered “auto repair estimate online tools,” you’re exactly right.

In the ever-evolving automotive industry, staying ahead of the curve means constantly learning and growing. For automotive service technicians, certifications aren’t just credentials—they’re powerful tools that open doors to better job opportunities, increased pay, and credibility with customers and employers alike.

Whether you're just starting out or already working in auto repair, understanding the most common types of mechanic certification can help you create a successful, long-lasting career. This guide will break down the most recognized certifications, how to attain them, and why they matter for every auto mechanic who wants to stand out.

Image showing the various type of mechanic certifications.

Types of mechanic certifications

Mechanic certifications come in many forms, each tailored to different specializations and career goals. The most common types include:

1. ASE Certifications

Issued by the National Institute for Automotive Service Excellence (ASE), these certifications are the gold standard for automotive mechanics. They cover a wide range of specialties, from engine repair to electronic systems and air conditioning.

ASE certification is considered the most prestigious and widely accepted credential in the automotive world.

More about ASE

Founded in 1972, the National Institute for Automotive Service Excellence sets the benchmark for automotive service technicians. ASE offers over 50 different certification tests in categories like:

  • Engine Repair
  • Brake Systems
  • Air Conditioning and Heating
  • Suspension and Steering
  • Electrical/Electronic Systems
  • Engine Performance
  • Manual and Automatic Transmission/Transaxle
  • Light Truck and Diesel Engines

Master technicians

There’s also a separate path for master technician status, which is achieved by passing all certifications in the required testing areas for that series. For example, technicians certified in tests A1 through A8 are Master automobile technicians.

Master technician status is not for life. You must keep each one of those certifications current to maintain master technician status. If you lose master technician status due to the lapse of one or more required certifications, it can be reinstated by taking and passing the recertification tests.

How long does it take to become ASE certified?

To become ASE certified, expect to spend anywhere from 1–3 years, depending on your work experience and whether you’re currently enrolled in training programs. Each certification test typically takes 1 to 2 hours to complete and can be scheduled at a local test center.

Being ASE certified shows you’ve mastered the skills needed for the job. It’s a badge of excellence recognized by employers, repair shops, and even customers looking for reliable service.

2. Student certifications

Geared toward high school and post-secondary students in automotive technology programs, these ASE certifications offer a head start in proving foundational knowledge.

What are student certifications?

Student certifications validate entry-level knowledge in core areas of vehicle repair and maintenance. These don’t require work experience and serve as a stepping stone to full ASE status.

Programs approved by the ASE Education Foundation often include student certification exams as part of their curriculum. These are excellent options for students at auto mechanic schools or in a community college training program.

Student certifications are valid for two years and help you build confidence before entering the workforce as an entry-level technician.

3. Manufacturer certifications

These certifications are specific to vehicle manufacturers and offered by companies like Ford, Toyota, GM, and others. Often, auto technicians working in dealerships will pursue these to show mastery of brand-specific systems.

For repair technicians who want to specialize in a particular brand, manufacturer certifications are essential.

Manufacturer training programs

  • Toyota T-TEN
  • Ford ASSET
  • GM ASEP
  • Honda PACT
  • BMW STEP

These accredited programs often partner with dealerships to offer real-world, hands-on experience while you earn your credential. These programs can take anywhere from 12 to 24 months and typically require completion of automotive technology coursework alongside on-the-job work experience at a brand-affiliated repair center.

Why they matter

Manufacturer-certified auto technicians often have a faster path to high-paying roles within dealership networks and brand-specific repair shops. These certifications also prepare you to service increasingly complex vehicle systems, especially as brands continue to innovate with hybrid and electric vehicles.

4. Specialty certifications

You’ll also find credentials related to diesel engines, heavy truck systems, collision repair, and even hybrid/electric vehicles.

Each of these certification types plays a unique role in an automotive technician’s career path, and in many cases, earning more than one will make you significantly more marketable in repair shops and beyond.

Depending on your interests, you may also want to pursue:

  • A/C Refrigerant Certification - Necessary if you want to be able to to buy refrigerant and work on air conditioning service.
  • Diesel Mechanics Certification – Focused on diesel engines used in commercial fleets and heavy truck applications.
  • Collision Repair Certification – Great for auto mechanics looking to work in body shops.
  • Hybrid/Electric Vehicle Certification – A growing field with high demand.

Each of these certifications typically requires completion of a specialized training course and a passing score on certification exams. These programs may be part of a broader certificate program or offered as a standalone credential.

Tek-Tip: Another way to get ahead as a young technician is to be experienced with auto repair shop software so your employer doesn't have to teach you how to use their system.

Benefits of mechanic certifications

Getting certified is one of the most direct ways to turn your hands-on experience into a long-term career asset. Mechanic certifications do more than look good on a resume—they deliver real-world advantages. Here are some of the benefits of completing automotive certifications:

  • Increased Pay: Certified mechanics typically earn higher wages. According to the Bureau of Labor Statistics (BLS), certified automotive mechanics can earn higher hourly rates, especially in competitive markets.
  • Job Security: The more certifications you have, the more valuable you are to auto repair businesses.
  • Professional Credibility: Certification demonstrates a commitment to quality and standards, building trust with customers and employers.
  • Career Advancement: Certified automotive service technicians are more likely to advance to roles such as shop foreman, master technician, or service manager.
  • Mobility: Certifications make it easier to move between different types of employers—whether that’s independent repair shops, starting a mobile mechanic business, dealerships, or specialty service centers.

What does the certification process look like?

Most mechanic certifications follow a similar pathway but always refer to the specific instructions for your program.

Step 1: Enroll

Start by enrolling in an automotive technology program. These are offered by community colleges, trade schools, and accredited auto mechanic schools. Many programs are supported by the ASE Education Foundation, ensuring alignment with real-world industry standards.

Look for certificate programs or associate degrees that offer hands-on training. Financial aid is often available for eligible students.

Step 2: Gain work experience

Work experience is critical for most certifications. For ASE certification, for example, you need at least two years of on-the-job experience—or one year plus a diploma from an accredited program. You’ll need to show that you’ve worked on everything from brake systems and axles to manual drive train repairs and electrical systems.

Step 3: Pass certification tests

Most mechanic certifications require passing written or computer-based certification exams. These are typically held at a certified test center. The exams cover a variety of topics depending on the specialty, including engine performance, electronic systems, and automatic transmission repair.

Tek-Tip: Some auto shops/employers will pay your test fees for you.

Step 4: Maintain certification

Many certifications require recertification every five years. Staying current ensures you’re up to date with the latest automotive repair techniques, tools, and systems.

Final thoughts

Becoming a certified mechanic takes dedication, but the payoff is worth it. From better job prospects to increased credibility, mechanic certifications help you build a successful, respected career in automotive repair.

Invest in your future. Get trained, get certified, and become a leader in the ever-growing world of automotive repair.

Automotive Mechanic Certifications: The Complete Guide

April 8, 2025

Read time: 3 min

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How organized is your shop’s schedule? When you look at it, is it easy to see gaps? Is it cluttered or organized?

Appointment scheduling should be a quick, simple process that gives you and your team more time to focus on customers and their vehicles.

Automotive scheduling software gives auto repair shops the ability to bridge the gap between saying “yes” to customers, while not overwhelming their team. Although “saying yes” is a simple concept, the ability to not turn people away will have a lasting impact on your customers.

Humans are not computers. As much as we try to keep up, the impact that smart software has on our day-to-day workloads is impalpable. What may take us hours to create, log, and plan can take computers minutes, if not seconds.

Although you have the ability to plan exactly what repairs need to be done, automotive scheduling software can help you coordinate times, notes, and schedules faster than it would take with a whiteboard or pen and paper. Implementing software into your shop’s scheduling routine can significantly improve your team’s capacity.

As your repair orders (RO) start to stack up, your team will need reliable scheduling software that can keep up with your shop’s growth.

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